How can you digitize your supply chain?
By nature, supply chains follow a long and complex design. In addition to your suppliers and customers, you must also think of their suppliers and customers in turn. If you want to increase transparency and efficiency, you must effectively digitize your supply chain. That means you need to look as far ahead as possible. Fortunately, you can start by taking small steps.
François Desjardins, Senior Business Advisor, BDC, says “You have to focus on the most problematic area first. Many business managers are still trying to figure out their sales peaks—which are related to production peaks—with charts done in pencil and paper.”
Digitization helps businesses move away from reactive decision-making by providing real-time information that supports planning and forecasting.
You don’t need to do everything, or everything at once. The important thing is to get started.
Rene Vargas
Senior Business Advisor, BDC Advisory Services
Why digitization matters
Traditional supply chains tend to be siloed and rigid, with minimal communication between participants and very little just‑in‑time optimization for productivity and efficiency. When shortages and stoppages disrupt the flow of goods, it exposes just how fragile and vulnerable that way of working can be.
To address these challenges, companies are increasingly turning to digital solutions. According to René Vargas, Senior Business Advisor, BDC, digital technologies help break down barriers and create integrated ecosystems.
“There are many aspects to a digital supply chain,” Vargas says. “Automation, data analytics, logistics platforms, the Internet of Things (IoT), cloud‑based technologies—they all can help make a traditional supply chain smarter, more connected and more efficient. You don’t need to do everything, or everything at once. The important thing is to get started.”
Potential solution 1: Controlling inventory demand with ERP
Inventory control remains a problematic area for many businesses. Products are often seasonal or associated with holidays or weekends, making demand forecasting difficult.
“Opting for an enterprise resource planning (ERP) system that tracks the real‑time consumption of your company’s various products will provide a real gain in efficiency,” says Desjardins.
“In addition, the ERP system includes supplier peaks in the equation, which further helps manage inventory demand.”
Once sufficient data has been collected, businesses can shift from reacting to events to anticipating them.
“You can set up alerts that will let you know everything that is happening so that you can act quickly and better predict future production cycles,” says Desjardins.
Potential solution 2: Automating purchasing with RPA
In many purchasing departments, purchase orders are still created manually.
“Essentially, someone realizes that a product is missing, so they request a purchase order and then place a rush order for the product,” says Desjardins.
“However, all of these steps can be automated.”
Automation can be achieved using robotic process automation (RPA) software connected to an ERP system.
“When a certain limit is reached, the order gets automatically generated with the supplier without the need for human approval—for example, if the order is for less than $1,000,” says Desjardins.
If the RPA handles 60% of the orders, your workforce can focus on the more strategic orders.
François Desjardins
Senior Business Advisor, BDC Advisory Services
Potential solution 3: Strengthen procurement through early integration and data sharing
To give yourself the best chance of creating a successful new product, it’s important to think about its upstream supply chain early in the process. Too often, procurement considerations come too late.
“Frequently, businesses take time to develop their product, and then they turn to their suppliers and ask for a very short delivery time without considering their constraints,” says Desjardins.
Disruptions to the global supply chain have highlighted how these ways of working are vulnerable. Digitization plays a key role in moving away from reactive decision‑making. It doesn’t have to be top down or end to end immediately. Even smaller players can add value by digitizing their operations and sharing data with supply chain partners.
“Being integrated within a transparent, digital supply chain lets you anticipate and prepare for upcoming requirements,” adds Vargas.
Potential solution 4: Expand your supply chain through customers and partnerships
Traditionally, supply chains have stopped at the customer. Digital tools make it possible to integrate customers more closely.
“The customer piece is key,” Vargas says. An ERP, along with “material resource planning (MRP) and customer relationship management (CRM)—solutions like that can all help, but don’t just think about back‑end components or processes. Think about ways to actually engage customers through your supply chain so you can better respond and satisfy real‑time demands.”
Digitization also makes it easier to extend collaboration through partnerships with other businesses. By sharing information and aligning capacity, you can make better use of resources and reduce inefficiencies across the network.
“This could be material resources, such as equipment that you only need at certain times of the year, storage space, trucks and even employees,” says Desjardins.
As these connections multiply, supply chains become less linear and more interconnected. Digitization plays a central role in supporting this shift and enabling more sustainable business models.
“It’s not a straight line anymore, and trends indicate we’re all heading toward a circular economy. Digitization is the key to transforming business models,” adds Vargas.
Next steps
For more help building a digital supply chain, contact BDC Advisory Services and talk to an expert about how you can optimize your business.