The 1+1=3 Effect of Digital and Physical Supply Chain Integration

Supply Chain Integration

“Bundling” has become synonymous with achieving greater value. You might bundle your telephone, internet, and television services. Or maybe you bundle your home, auto, and life insurance. By having all related services bundled into one, not only do you get better value but you also maintain stricter control over your activities. Bundling isn’t just limited to internet and insurance; it can also be implemented within the supply chain.

The supply chain now stretches further than ever before. And it looks and feels much different than it did just 10 years ago. Big data has changed the way companies gather and use information to better inform their strategies, and the supply chain has become a hub of data  ̶  particularly with the emergence of the digital supply chain.

The digital supply chain goes beyond processes that are enabled by IT, in that is takes advantage of connectivity, integration, automation, and the Internet of Things (IoT). Through the digital supply chain, smart machines and processes have been simplified and are more efficient than the traditional physical supply chain model. That being said, the traditional physical supply chain continues to have a strong and important place at the table by providing a holistic role in the supply chain eco-system.

Digital and physical supply chain services have traditionally been separate. But innovative supply chain management vendors are redefining the physical/digital border. If you think about your physical and digital supply chain services as a single entity, you might just realize that you are able to drive greater value, not only along the lines of the supply chain, but across the entire company.

With the physical and digital supply chains working in tandem, businesses can experience a 1+1=3 effect where the positive impact of the two together is far greater than the two working alone. The two modes of supply chain can interact with one another to form a seamless and communicative process where people and machines work to accomplish the same goals, and data is gathered throughout both modes and then analyzed and applied to make both supply chains ̶ and most importantly, the business ̶ more efficient moving forward.

Supply chain vendors like ModusLink are making businesses more innovative by blending together the physical and digital supply chains into one highly efficient, extremely manageable, and forward-thinking process. Companies that bring together these two methods soon realize the benefits and see the power of automation and the IoT melded with traditional supply chain procedures. Learn more about the benefits of ModusLink today.

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