In any crisis or unexpected scenario, leaders must act quickly and, above all, with reliable information delivered in real-time.
“Due to the COVID-19 pandemic, the estimated value for out-of-stock items in 2020 was $1.14 trillion.”
The business world made efforts to tactically adapt internal workflows and external interactions with their customers and partners along the supply chain to respond to Covid-19 protocols during the pandemic and emergent needs in the past two years. As the Pandemic get behind, those tactical efforts needs to transition to the strategic initiative to enable further optimization, reliability and scalability.
This article highlights three key advantages of having a correct supply chain integration in a business, helping them overcome unexpected challenges.
1. Enterprise application integration play a crucial role in supply chain optimization and continuity
In cases such as medical supplies and devices, Covid prevention products, and food and other vital supplies, supply chain continuity has been and continues to be crucial in preventing the spread of disease and enabling health care continuity. We’re currently seeing the failure to achieve this in some countries worldwide.
Complex supply chain processes, supported by enterprise applications such as supply chain management (IMS, WMS, TMS), ERP systems, and eCommerce/ eProcurement platforms, have played a critical role in ensuring business and supply chain continuity over the past two years. Preventing any rupture of the supply chain in vital areas has never been more crucial.
With cloud-enabled native enterprise applications, businesses can now manage their required planning, coordination, and administration with operational continuity and remote access. Such is the case when organizations need to execute certain physical activities (such as warehousing or transportation) in the “physical world,” as most supply chain planning, execution, coordination, validation, and traceability can be managed remotely by home-based workers.
2. Cloud computing is key to both business continuity but also transformation
Our new remote way of working has proven to be feasible and effective. Remote collaboration has become intertwined with new ways of working within organizations and others in the value chain.
To make the supply chain more resilient, 54% of companies have increased their cloud computing and storage investment.
Cloud computing has demonstrated its value as a vital tool for business transformation and business continuity by providing access to core enterprise applications and data from anywhere with an internet connection. Business continuity couldn’t have happened to the extent it did as the Covid-19 pandemic hit without the support of cloud-based services. Cloud-enabled enterprise applications management and platforms also allowed significant cost reduction, reducing IT total costs. It also provided new tools and technologies to increase business process productivity and automation and reduce the carbon footprint.
Implementing cloud infrastructure and enabling enterprise applications to support key company processes takes more than simply technological empowerment; a change in organizational culture and procedures is required.
3. The acceleration of digital businesses transformation
The pandemic triggered a reinvention towards the digital for companies and industries alike– via increased eCommerce demand from consumers, and B2B digital interactions, through web-enabled supply chain platforms.
Companies that have prepared their processes, culture, and people and focus on enterprise applications towards resiliency, sustainability, and safety also have an opportunity to lead in innovation and create competitive advantages for post-pandemic times. As we return to “normalcy,” companies who have invested in this transformation will be ahead of the game.
Leaders who focus on establishing sustainable models that can reduce the economic and social impact of crisis events will be advantageous.
Fool-proofing the unknown future with known solutions and tools
We are reinventing how we approach business transformation and supply chain processes.
However, there’s one thing for sure, the past two years have proven that the strategic use of supply chain applications, decision-making tools, and cloud technology is not an option but a necessity for businesses to survive and thrive, even in a crisis.
Establishing within any organization a sustainable model can reduce the economic and social impact of an unexpected situation. Ensuring sustainability is a crucial responsibility of companies, social organizations, and governments.
At Globant, we customize services using critical technological solutions for your business. Our specialized studios, apply and provide the most up-to-date practices for our clients.
