Discover the 5 advantages of synchronization in the supply chain

Dynamic interactions among supply chain business partners lead to interconnections and collaboration. To build a cooperative operational network capable of facing competition and market changes, there must be automation and synchronization in the supply chain.

Discover the 5 advantages of automation and synchronization in the supply chain

In this post, you will understand the competitive advantages that automation and synchronization in the supply chain provide to all links in the chain.

1 – Increased visibility

A study by Hewlett Packard Enterprise which focused on the advances in supply chain innovation in the digital age, identified that most companies analyze their data “from” and “in” the core of their operations. Leaving the corporate walls, automation and synchronization solutions, in the supply chain such as OSA (On Shelf Availability) extended to retailers to gather information.

Being able to follow what is happening along the supply chain and also understand what is happening at the consumer end, at sell-out, is one of the main advantages of automation and synchronization. This increased visibility provides an accurate diagnosis of the actual problems that lead to out-of-stocks and excess inventory. Hence why it is possible to guide corrective actions according to the pace of consumption, increasing product availability on the shelf and reducing losses.

2 – Integration of processes in a collaborative way

A supply chain often involves hundreds or thousands of companies and individuals that communicate with each other. All the differences in how each operates and thinks about their business processes create enormous complexity.

In a business ecosystem based on automation and synchronization, it is possible to integrate end-to-end processes, streamlining logistical operations and business transactions among them. This new approach includes collaboration and integration for manufacturers, distributors, and retailers, through multifunctional processes that synchronize product, demand, and supply decisions to maximize value.

3 – Transactional data synchronization

With digital transformation it is necessary to rethink the approach to data. Companies must analyze transactions in real time as they occur. By speaking the same language through synchronizing transactional data across its business network, the manufacturer is able to drive information and align processes.

With the integration of activities and a single source of information, the agents that form the supply chain links will be prepared to support demand variations and market fluctuations in real time. A supply chain that properly detects and responds to market demand or supply disruption allows you to make better and faster decisions.

4 – Optimization of logistical resources

In most companies that are part of a supply chain the management movement of goods, exchange of documents or information and monitoring of transport status are done without standardization and often manually. However, the way in which transportation and movement of goods flows along the chain is a determining factor in competitiveness. Without supply chain integration and synchronization, manufacturing, distribution, and retail processes become slower and less accurate, leading to a domino effect of logistical delays and costs.

When there is automation and synchronization in the supply chain, you reduce the time trucks must spend on the road as well as the volume of products stocked in a warehouse. The cooperation between business partners in the supply chain allows us to take advantage of unused capacity, maximize loads, optimize, and reduce the allocation of transportation and storage resources.

5 – Outstanding customer service

Disruptive businesses have changed the way they engage with customers, influencing product and service offerings. Increasingly, corporate customers and end users will participate in the development of offerings, with their expertise and needs being heard and included in the creation of products and services. Thus, companies will serve a large number of people in smart ways. And new offerings will be created in ways that allow users to choose which features they want and which they don’t.

Automation and synchronization in the supply chain are important elements to serve this innovative business environment, enabling companies to significantly improve customer service and satisfaction. All this, while providing the agility needed to respond to increasing fluctuations in demand.

Adopting a strategy of automation and synchronization in the supply chain through a complete and comprehensive technology platform creates collaborative partnerships that bring real and lasting competitive gains.

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