The digital transformation of Australia’s supply chain
Who will lead the Australian supply chain into the digital age? Today’s globalised and heavily outsourced world requires companies to transform their business models, and approach this with a more holistic view of their entire chain, embracing new and emerging technologies.
Companies overseas are already investing heavily in digitising their supply chains. Major airline carriers, such as Emirates, are expanding their paperless e-freight offering, while retailers Amazon and Alibaba have invested in robotics for goods handling, drones for deliveries and apps for optimising their delivery services.
A global research study conducted by Capgemini Consulting and GT Nexus revealed that 75 per cent of respondents believe a digital transformation of the supply chain is “important”. When this change does occur, what will be the key benefits for the sector?
Less risk, greater efficiency
Introducing new technologies that automate processes as well as collect and manage data will not only mitigate risk for businesses, but boost productivity and efficiencies. Technologically-optimised customer data, sales forecasts, historic analysis and forward-looking supply chain management data can create improved supply chain planning. The fear that people will lose their jobs is also a hot topic. As strategic and tactical supply chain planning to manage this new technological investment becomes more important, employers may in fact increase the headcount in these areas of the business.
Growth and investment for other industries
These developments will bring about benefits for the supply chain and have a flow-on effect to manufacturing and retail companies. Digitisation may significantly increase cross-industry initiatives that aim to better-connect supply chains among companies to achieve optimised cost and delivery speed. The information technology sector will no doubt also benefit from further digitisation of Australian businesses, looking to invest in cloud computing and data integration for their internal and external systems.
Improvements in customer service
Companies can expect to see greater transparency and flexibility, plus a reduction in inventories and delivery times, which will positively affect their customer base. Through the use of more advanced and integrated IT systems, and big-data analytics, companies can discover more about their customers and apply that knowledge to their strategies.
The future of Australia’s supply chains rests on a complete digital transformation, where companies move away from traditional technologies such as fax and telephone, and progress to higher levels of connectivity through network-wide analytics and data-accessibility as well as cloud-based systems.
Staying abreast of these innovations requires professionals to have the skills and knowledge to effectively implement transformation within the supply chain. RMIT’s online Master of Supply Chain and Logistics Management connects you with industry leaders and exposes you to innovative practices that will help you pave the way to a brighter future. Find out more by calling one of our Student Enrolment Advisors on 1300 701 171.
