Introduction
Global supply networks were interrupted by the COVID-19 outbreak, and firms had to make quick adjustments to survive. The advent of digitalization as a game-changing answer to the problem of ensuring the smooth operation of the supply chain came at a crucial time. This article examines the impact of the pandemic on the widespread adoption of digitalization in SCM, focusing on its implications for transparency, robustness, and future developments.
Discussion
Quickening the Pace of Digital Disruption
The widespread problems caused by the pandemic exposed the weaknesses of the conventional supply chain. Companies sought digital solutions to increase transparency and responsiveness. Shipments and stock levels might be monitored in real-time thanks to cloud computing, Internet of Things (IoT) sensors, and data analytics (Ivanov, 2021). As a consequence, businesses improved their ability to survive in the face of uncertainty by being better able to track supply-chain interruptions and make rapid adjustments to operations.
Coordinated and Observable Supply Chain
By linking together all the parties involved in the supply chain, digitalization increased transparency across the system. Sharing information in real-time allowed for more precise demand forecasts, inventory optimization, and shortage prevention (Tasnim, 2020). Suppliers, makers, and distributors were able to better coordinate their efforts and fill in any gaps in knowledge thanks to collaboration technologies that simplified their communication. This better oversight was crucial in dealing with the unexpected changes in demand and interruptions brought on by the lockdowns with border closures.
Figure 1: SCM after COVID adopting digitalization
(Source: ey, 2023)
Possible Future Consequences
The pandemic drove home the point that digitalization is crucial for sustainable supply chain plans. Predictive analytics powered by AI, blockchain allowing transparent operations, and automation of robotic processes for simplified operations are all examples of technology that companies are probable to invest in with a view towards bolstering their resilience (Grzelakowski, 2022). There is a growing need for digital solutions that facilitate remote work and online communication.
Potential Obstacles and Benefits
The path towards digitalization that was prompted by the pandemic was fraught with peril and promise.
Challenges
Integration as well as safety concerns were raised in response to the rapid use of digital technology. Adoption was hampered by the incompatibility of legacy systems. Furthermore, the workforce has to be reskilled so that digitalization can be implemented successfully.
Opportunities
The pandemic sped up the widespread use of new technologies, which triggered overdue shifts. There was a mental change brought on by this realization of how crucial agility and digital preparedness are (Nabipour and Ülkü, 2021). Businesses might save money and work more efficiently if they eliminated certain manual procedures and made more decisions based on data.
Conclusion
The COVID-19 pandemic prompted the introduction of digitalisation into logistics. The need for immediate insight, interaction, and tolerance in preserving operational continuity was highlighted by this situation. As companies face the problems of the epidemic, they are seizing the opportunity presented by digitization.
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