Why invest in supply chain digitalization?

Supply chain digitalization, much more than just talk, is increasingly becoming a reality. According to a Gartner study, 23% of supply chain industry leaders expect to have a digital ecosystem by 2025. Today, only 1% of them are inserted in the digital environment.

Why is supply chain digitalization important?

Like many other areas, the supply chain was severely affected by the pandemic. Some system vulnerabilities were exposed in Brazil and worldwide, triggering an alert that adjustments are needed.

Most people realized that the supply chain not only must be more resilient but it must be better prepared to deal with crisis periods at a global level. Nobody can foresee pandemics, catastrophes, and natural disasters, but business cannot stop. And if the supply chain stops, everything else stops.

This concern gave rise to an interest in seeking solutions that help ensure proper operation for all processes. The pandemic accelerated this digitization, and leaders who had already focused on automation continue to research new technologies and trends to keep this evolution.

The internet and digital platforms are identified by 79% of industry leaders as the most relevant items to guarantee the future of business in the post-pandemic world, according to data from Gartner.

Advantages of supply chain digitalization

In addition to preparing the supply chain for new challenges, digitalization also brings the potential to add more value to the services provided by the supply chain.

Among the benefits that the conscious use of technology can bring to the supply chain, we can highlight the following:


Automating internal processes ensures grater agility when performing activities. This allows decisions to be made faster. Thus, problems are avoided, and the entire chain becomes more efficient.

Monitoring and visibility

Visibility into all stages of the process as well as the results is an extremely important aspect of digitalization. Companies can monitor sales, inventories, deliveries with greater accuracy and agility.

Inventory optimization

Using smart inventory management systems allows better use of space and an operational gain from all related activities. If the inventory is omnichannel, for example, it is prepared for any demand, online and offline.

Operational security

When specific tasks and logistical procedures are automated, the employee prevents physical risks and is less exposed to injuries and labor accidents.


If technology helps human beings to perform certain tasks, they tend to produce more and better. Furthermore, when not dealing with bureaucratic activities, human potential can focus on problem solving and developing insights.

Document integration

Supply chain management involves many records, receipts, and documents. Focusing on a solution that integrates different systems greatly optimizes the work, avoiding errors and ensuring full compatibility for all incoming and outgoing documentation.

Reduced costs

As we’ve mentioned paperwork, digitizing this stage of the process already has a big impact on operating costs. Where there is optimization, there is improvement, and this applies to containing costs and identifying waste that can be prevented.

Customer loyalty

Everything we listed above boils down to one extremely important item: improving the level of service. Companies that work well are more in demand, and tend to have more loyal customers as they are satisfied with the results.

Technological trends for the supply chain

As technology never stops evolving, the sky is the limit for all innovations that can be deployed in the supply chain. The more investment is targeted to technological and digital solutions, the more significant the results will be.

Artificial intelligence is already a great ally for the supply chain, and its importance should grow significantly in the coming years. Through AI, companies can manage inventories and deliveries more assertively.

Artificial intelligence also allows conducting predictive analytics, which help businesses prepare for future challenges. If implemented with machine learning concepts, and machines upgrading without human intervention, the potential of AI increases even more.

Alongside AI, we have the Internet of Things, another technology that is already available and tends to gain more relevance. Machines and devices capable of sending and receiving data digitally streamline the collection of information and can be operated remotely through digital apps and dashboards.

Digital twins are another technology that has been gaining strength. In practice, the technique creates a digital copy of a physical structure, expanding the field of vision of managers and enabling a deeper verification of internal practices and processes.

And we cannot talk about automation without mentioning RPA (robotic process automation), another trend that is already available in many companies, optimizing multiple tasks and reducing costs by mitigating errors and rework.

These are some of the key technology trends that will shake up (and streamline) the supply chain in the coming years. Digitizing the supply chain is key for it to be more efficient.

But this evolution will not happen alone: managers must adopt a proactive posture to implement the changes and have an open mind to adopt new work methodologies. If they can do this, rewards will surely follow.

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