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Learnings from NTLF 2022 - Building resilience in supply chain through the next digital transformation
Learnings from NTLF 2022 - Building resilience in supply chain through the next digital transformation

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Below are some of the learnings from the discussion on “Building Resilience through Next in Digital Transformation” from the NASSCOM Technology and Leadership Forum (NTLF) held in February 2022

Post pandemic, supply chain and logistics have witnessed massive changes and these sectors are turning to digital technologies to adapt to new realities. The Indian govt. has taken many steps to ensure that India is the manufacturing centre not only internally but for the entire world as well. Manufacturing and logistics go hand in hand. Post covid, supply chains need to be made more efficient, robust, and overall cost efficient. The fragility of global economy has become apparent in the wake of ongoing disruptions due to Covid, natural disasters, and the challenges facing global trade. The chip shortage is one such example, which has affected major economies and sectors across the globe and now many countries are investing in expanding their own chip manufacturing facilities.

Stresses in supply chain can leave the society in a worse off condition. Critical medical supplies imports can get stuck, food and agricultural supplies are wasted due to supply chain disturbances. Approximately 1/3rd of world’s food is lost or wasted and a significant amount of this occurs due as shipments move along the supply chain.

The inefficiencies and blind spots in the supply chain have been exposed post pandemic, and these are exacerbated by the lack of real time information available to business and govt. How, as an industry, can we get better visibility, better predictability to be in a better position to respond in a crisis?

How can supply chains become “smarter” and leverage vast pool of data and enable a new level of communication? Smart supply chains can be created by leveraging data. For companies like FedEx, data is readily available due to millions of packages floating around in their network every single day. Leveraging that cutting edge data enables companies like FedEx to foster a more efficient global marketplace using digital tools, to build real time insights and predictive information. In today’s environment, businesses are demanding greater control and flexibility across supply chain. For consumers, brand experience has extended to back-end operations and logistics. There has been an exponential growth in e-commerce and the resulting long-term shift is affecting buying behaviour and how companies think about logistics. Due to this, supply chains are increasingly creating more data.

However, this wealth of data also creates a lot of confusion for the companies as to how best use and leverage this data for their benefit. To better harness information for the business and the customers, companies lie FedEx are creating data first organisations within their companies that operates as a start-up within the enterprise and leading the company to its digital transformation journey to improve customer experience and make supply chains smarter. These are using AI and predictive tools to enable proactive monitoring of time sensitive shipments and the environment they travel though like weather conditions, temperature, etc vital for preservation of goods. This especially is necessary post Covid for the supply of covid vaccines.

Digital transformation, especially in logistics and supply chain sectors, has sped up due to the pandemic. Supply chain is the backbone of the economy, and this has been even more prevalent when the world saw the effects of disruptions in semiconductor supply chain across various sectors. Therefore, smart supply chains are the need of the hour. Having real time insights about supply chain decisions better informs how we can adapt to new and unexpected challenges like the Covid pandemic and reduce wastages across the supply chain as well.

Supplychain

Implementing the latest in AI and cloud computing, companies can see the potential of a smart supply chain, and how it helps them to save time, effort, and money, thereby moving away from a “just-in-time” to the “right time, right place via the right solution” strategy. Goods would be able to move in an efficient and sustainable supply chain. Therefore, electrifying the fleet of delivery assets is also an important step towards achieving the same. Smart supply chains would help move the companies from “what happened” to “what’s happening” to predict “what is going to happen”. Creating smarter supply chains means a more resilient global economy that allows everyone to respond to threats and challenges in an efficient and effective way.

 

Read the latest NASSCOM “Resilience to Resurgence – Technology Sector in India 2022: Strategic Review” report, please click on the links below –

NASSCOM Community – https://community.nasscom.in/communities/bpm/technology-sector-india-2022-resilience-resurgencestrategic-review

NASSCOM Website - https://nasscom.in/knowledge-center/publications/technology-sector-india-2022-strategic-review


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Vandhna Babu
Chief of Staff - President's Office

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