The world today is shifting at an accelerated pace towards digital transformation, with the Covid-19 pandemic creating more urgency for businesses to adopt digital software to keep their services efficient.
In the logistics industry, it has become critical for manufacturers, suppliers, retailers, shippers and distributors who are the major stakeholders in a supply chain to ensure their logistics supply chain moves smoothly and ends with the product delivery to the customer.
To help optimise supply chain operations these stakeholders are heavily dependent on the supply chain partners to keep pace with upcoming digital trends and software like pallet management systems to keep their supply chain moving efficiently.
Supply chain management software like pallet management software are designed to manage and make the exchange and flow of coordination of information across the key supply chain partners more coherent.
Technological advancements like pallet and container management software are now more accessible to industries of all sizes and can be integrated without any hassle to enable businesses to build end-to-end supply chain solutions that speed up processes and avoid bottlenecks in the supply chain.
We are in a new age where digital software like pallet management systems can fundamentally change and shape logistics operations and strategy.
The new paradigm in logistics will help in saving millions of dollars of operating costs, achieving better supply chain integration, and increasing market power through customer-focused fulfilment.
However, several businesses are struggling to keep pace with the rise of the new upcoming digital trends and software that can make a supply chain disruptive vs traditional supply chain management methods.
The speed of change can be overwhelming, especially for those that are not digital natives and it’s important to understand the urgency to adopt digital software such as pallet management software to not get left behind by the competition.
What is a digital supply chain?
A traditional supply chain can be summarised as the networking between all stakeholders involved in a business process from the manufacturers to the end-user.
A digital supply chain is one that carries out the traditional tasks and functions of a supply chain with the aid of digital softwares like pallet management systems and pallet and container management softwares.
The goal of transforming a traditional supply chain to a digital one is to gain more transparency of the supply chain and to increase efficiency, invariably to reduce bottom-line cost and increase profits.
When you employ a digital software such as a pallet management system, the digital supply chain works by managing multiple sets of activities that are connected with coordinating, controlling and planning the movement of raw materials, goods and parts from the supplier to consumer.
Employing digital software will ensure your financial, material and information flows are managed and controlled. This will help you make better decisions that are tactical, strategic and operational for your supply chain.
Why is it so important?
The primary aim of adopting digital software is to get better insights into the supply chain efficiently and optimise operations based on the data collected to produce higher profits.
In the logistics and supply chain sector, very few companies have unlocked the full potential of utilizing digital softwares like pallet management software to increase their supply chain efficiency.
A McKinsey study, for example, found that the average supply chain has a digitisation level of 43%, the lowest of five business areas that were examined. A mere 2% of the surveyed executives said the supply chain is the focus of their digital strategies.
The same McKinsey research suggests that on average, companies that digitise their supply chains can expect to boost the annual growth of earnings before interest and taxes by 3.2% – the largest increase from digitising any business area – and annual revenue growth by 2.3%.
Organizations that adopt digital softwares quickly will automatically be at a competitive advantage because using softwares like pallet and container management softwares increase efficiency while reducing the potential of unnecessary human error.
Value of digital softwares in supply chain management
Control Over Production
The use of digital softwares such as pallet management software in supply chain management gives better visibility and accountability.
In order to make a supply chain efficient across from the start to the end it is important to have a clear overview of the stage of the movement of goods in the logistics supply chain.
By having a clear overview, you can foresee any potential problems or delays they might face and be able to align production schedules accordingly
The adoption of a pallet management software brings transparency into your whole supply chain and allows you to have better control over the information flow and the supply chain.
Inventory Management
Maintaining optimal levels of inventory and avoiding overstocking, buffer pallets and damages can be a challenge for all manufacturers.
Excess inventory leads to reduced circulation time of pallets, increased capital, while low inventory can lead to stoppages in the production cycle. By using pallet management software businesses get transparency, data and flexibility to handle changing demands.
Collaboration Between Supply Chain Partners
With pallet and container management systems in place, businesses can increase collaboration across their teams and also with key partners.
You can track activities through the whole supply chain and get insights into any problems that arise. By having an overview of all the activities, businesses can make more informed decisions and forecast demands for the future better.
Effective Order Tracking and Delivery
One major benefit of integrating a pallet management software is essentially increasing customer satisfaction. Higher customer satisfaction leads to higher customer retention.
Digital software plays a vital role in increasing the speed of delivery and keeping your logistics supply chain moving seamlessly.
The net result in using digital softwares like pallet management softwares in supply chain management includes lower cost of product, reduced working capital needs and increased customer satisfaction.
The bottom line is – businesses need to understand its imperative to adopt digital softwares to make their supply chain management more efficient and reduce bottom line costs while increasing net profits.
LogSoft has digital software solutions that are designed to suit various supply chain processes. Get in touch with us to find out what will work best to optimise your supply chain management.
