The industry is buzzing about the concept of digitizing the supply chain. Stories flood the media about how companies must digitize, but the process is still in its early years. Only one third of 490 top supply chain executives recently surveyed by Cognizant and Forbes Insights believe their companies have achieved high maturity of digitization of their supply chain in strategy, planning or execution.

...But what does that mean anyway?

                                            

Most companies still operate hybrid supply chains of paper-based and IT-supported processes. They work with multiple parties to communicate via a mixed model of paper, email, and phone. Some information is digitized, some remains physical, and most is kept in silos; an inefficient and severely flawed way of operating in a fast-paced environment. But foremost, non-digital supply chains are missing out on significant opportunities to save time, money and resources.

Moving from digitizing to digital

In simple terms, digitizing is creating a digital (the bits and bytes) version of analog or physical things like paper documents, images, even color swatches or product samples. Some companies already have moved their internal teams to digital platforms but stop there, never shifting their strategies to become truly digital across every link in their entire supply chain.

As companies expand global operations to take advantage of cost savings in other regions, they are put under pressure to deliver the right product at the lowest price into the waiting hands of customers. From sourcing to shipment execution, your global operations require collaboration with various parties, the exchange of documents, and the ability to quickly adapt to interruptions, all the while remaining compliant with global security initiatives. Without digitization, important and cost-saving details are bound to get lost in the shuffle.

Supply chains are changing fast. While there has been little change in the physical movement of goods, customer expectations have risen alongside the Internet of Things, data analysis, the cloud, sustainability, and other competitive pressures. B2C trends are driving B2B; ease, reliability and transparency are now standard requirements. Business needs to reflect on this strategy and focus on growing in a digital world.

Next month, executives at the SCM World Leaders Forum - the annual retreat for the world's supply chain and operations elite in London - will discuss "Mastering the Matrix" of the digital supply chain. Joining the discussion will be Charlie Jenkinson, former vice president of operational excellence at Electrocomponents, as he presents on "Creating a Digital Supply Chain."

The apparel and footwear industry is fueled by consumers who expect instant gratification. On top of these high demands, the new administration, dramatic changes to shipping and logistics, and shifts in sourcing practices have thrown the industry a curve ball. Although it goes without being said, the apparel and footwear industry has evolved into a complex and rapidly changing environment.

Luckily, technology has been simultaneously evolving to meet and serve the needs of the industry in all its complexities. Those who are looking ahead, understand that collaboration is a critical component to minimize risk and ensure a smooth operating supply chain. They have chosen to harness global trade management solutions to alleviate the stress of their supply chains and optimize their sourcing operations in order to meet their customer’s demands through rapid speed to market and therefore secure loyalty.

In the face of a disruptive world, companies are ever-more empowered to transform their global supply chains. In the multi-faceted climate of global trade, organizational survival relies on the ability to effectively anticipate, adjust, and alter supply chains to maintain a reputation of reliability and high performance. This expectation makes flexibility, agility, coordination, and speed vital components to the life blood of any global organization.

Uncertainty is perhaps the greatest industry trend of 2017. Rooted in the changes to our political climate, inevitable supply chain risks, and drastic shifts in customs and trade patterns, global transactions are riddled with challenges. As a trade compliance professional, you know that operating in a volatile environment requires overcoming the uncertainty that complicates even the most mundane of tasks.

Risk in the supply chain comes in a variety of forms, including inadequate or poor product quality testing and supplier management programs. Additionally, enhanced government regulatory requirements have created an environment where strong risk mitigation practices are an imperative for avoiding lost sales and negative publicity.

Next month, Jenny Roman, Solutions Manager, Amber Road, will speak at the USFIA Fashion Forward Seminar on April 5th in Columbus, Ohio. This seminar will address the  future of trade policy, compliance, and supply chain management for the fashion industry.

Looking to 2017 and beyond, the stakes for supply chain leaders continue to rise. Executives at the SCM World Live Americas conference next week will learn how Polaris is automating its global supply chain activity to address current and future challenges in digitization, globalization, and scalability:

• Eliminated or mitigated trade flow gaps
• Ensured quality trade procedures
• Optimized internal and third-party resource utilization

Using digital supply chain touch points and a new resource structure, Polaris has successfully created a strong foundation built for scale and flexibility. 

In early 2016, analysts predicted positive trends and a big trade uptick. Instead, global trade volumes fluctuated and consumer spending diminished, worldwide protectionism and de-globalization became evident and supply chain risks were enhanced, which left importers and exporters scrambling to stay on course.

As we move into 2017, global trade management executives need to brace against disrupters that have the potential to send supply chains into a tailspin. The industry must address the same imperatives — speed, quality, cost, risk and agility — yet doing it alone isn’t an option. The key is investing in technology and making process changes in advance.

When it comes to software designed to streamline supply chains, there’s old global trade management, and then there’s the new.The old school global trade management (GTM) systems automate processes that begin when shipments are ready to go, moving them from Point A to Point B in a timely manner at the lowest possible cost while ensuring complete and accurate import/export documentation for shipments. The new GTM automates processes way upstream, even at the product design and component sourcing stages, focusing on risk and quality management, while facilitating compliance with various product regulations.