Successful Supply Chain Digitalization Stems from Systems, People and Processes
Robots, AI-powered predictive analytics, intelligent process automation and other digitalization strategies are reshaping supply chains to increase efficiency, enable resilience and enhance service.
Considering these benefits, it isn’t surprising that advanced technologies are finding a home in the supply chain, but the speed at which it is happening is eye-opening. DHL Supply Chain alone has completed more than 1,600 digitalization projects across its North American network and the pace is accelerating.
As this trend progresses, more organizations will be in the position of moving beyond “point” solutions and seeking to create synergies across multiple digitalization initiatives.
This evolution will only be possible if existing systems and processes can simplify deployments and enable orchestration across technologies. As the leader in supply chain digitalization, DHL Supply Chain is taking the lead in defining the system architecture and processes that support this next phase of digitalization. Here are three keys to their accelerated digitalization strategy.
Integrating Systems
Not that long ago, a business was on the forefront of supply chain digitalization if it had best-of-breed warehouse and transportation management systems in place. Those platforms are still essential, but they aren’t sufficient by themselves to meet current and future requirements.
The best practice today is to extend the functionality of these core platforms through a suite of complementary systems that manage labor, provide analytics-based insight, optimize processes, monitor performance, enable paperless processes, and provide other specialized functionality required within certain industries.
This best practice is exemplified by DHL Supply Chain’s integrated digital ecosystem, which is architected to improve operational efficiency, enable data-driven supply chain management, and support the rapid deployment of automation and use-case specific predictive analytics and AI products.
The need for integration extends to supply chain visibility. The ability to track shipments through transit has become an expectation, but only addresses part of the visibility challenge. A true end-to-end visibility platform, such as DHL’s MySupplyChain, enables management teams to track products from receipt through storage and shipping to final delivery.
Connecting People to Technology
Humans play a vital role in the supply chain and shouldn’t be left behind by digitalization. While many front-line workers today depend on powerful mobile devices in their personal lives, they are then handed a clipboard or other analog tools when they arrive at work.
DHL Supply Chain has equipped frontline workers across its more than 500 operating sites with digital devices similar to what they use in their personal lives. Of course, the devices are only part of the solution. What really connects people to the digital ecosystem is the company’s SmartOperations platform that creates a common, secure and easily accessible interface to the systems employees use daily.
From clocking into work to managing safety, SmartOperations allows workers to move seamlessly between the systems they use. Supervisors, for example, carry their tablets on daily Gemba walks, entering notes and observations directly into the relevant system rather than having to go back to the office to enter handwritten notes on a desktop computer.
The benefits of the platform extend beyond operational efficiency. It increases buy-in and engagement with digitalization strategies, accelerates onboarding for new employees and improves retention.
Streamlining Deployments and Mitigating Risk
One common barrier to digitalization is the resources consumed by technology selection, deployment and management. Another is the concern that introducing new technology will disrupt operations or won’t deliver the expected benefits. These challenges will only be amplified as the pace of digitalization continues to accelerate and organizations find themselves juggling multiple digitalization projects.
Third-party logistics providers have an inherent advantage in addressing these challenges because they are implementing the same solutions at multiple sites across their network. DHL Supply Chain has maximized this advantage through a disciplined and systematic approach to technology deployments.
It starts with documenting the processes used for proof-of-concept deployments and continues through the development of playbooks for each solution as they are expanded with learnings from subsequent deployments. This allows the company to leverage proven best practices and industry-specific templates to streamline implementation, improve operational performance and reduce risk.
This “commercialization” process is actually the end phase of the company’s innovation funnel. At the top of the funnel, DHL continuously monitors the technology landscape and identifies emerging technologies that have the most potential to deliver value in supply chain applications. This often includes working with vendors to adapt technologies to specific processes, as the company did recently through its collaboration with Boston Dynamics on the Stretch™ mobile carton handling robot. As solutions move through the funnel, they are evaluated, tested and refined until they are ready for commercialization.
Taking the Next Step
While incredible progress has been made in the last several years, we are still at the front end of supply chain digitalization. The next phase is an exciting one but is only possible if a foundation is in place that encompasses systems, people and processes. Developing that foundation requires deep IT expertise, repeatable deployment experience and a resilient enterprise architecture.
DHL Supply Chain has already invested in these capabilities and is now in a position to lead its customers into and through the next phase of digitalization. For more information about DHL Supply Chain’s digitalization efforts, visit dhl.com/allin.
