Modernization is inevitable. As a result, enterprises and industries need to keep up as modernization becomes a necessity in operation. Supply chain industries need to avoid being left out and need to keep with the demand of the trade.
Modernizing the supply chain has become a strategy to transform initiatives and create a competitive advantage on a global scale. Modernization shows that SCM software usage grows at a rate of 9% annually. This number is projected to increase by over $22 billion by 2025, gaining more trust from customers worldwide.
The Modernization Strategies
Plugging in modernized strategies into the supply chain recognizes the industry’s commitment to make the most out of new technologies. In addition to this, it will also allow companies to reap the benefits of an updated supply chain.
Gaining substantial results from modernization requires spending a few million dollars and around 12 to 24 months to come into fruition. For these results to be substantiated, companies must implement practical approaches in order for the modernization strategy to succeed.
These strategies are categorized into three different initiatives:
- Unifying demand and supply management.
- The implementation of a segmented strategy.
- The creation of a single plan that identifies and responds to deviations and disruptions while continually balancing supply and demand.
Successfully implemented strategies will allow a company to realize the full potential of modernization while giving substantial benefits.
Increase Customer Satisfaction
Modernization comes with a variety of benefits. One of the greatest benefits of modernization is that customers feel as though they can put more trust into the supply chain. The ways that supply chain modernization can benefit your customer base is listed down below.
- Availability of data and information – supply chain modernization has allowed data transparency within companies. Customers then feel as though their concerns are being heard which in turn leads to improved customer satisfaction. Customers will also feel empowered and informed about their purchases, making them favor the company’s products and services that are available.
- Utilization of advanced analytics – using advanced analytics in the modernization of the supply chain helps to support customer’s decision-making. This is due to the modernization being able to understand and predict customer and supplier behavior which in turn allows them to gain insight with accuracy and confidence.
- Optimization of inventory, production, and procurement – on the company side, optimized inventory ensures a higher rate of order fulfillment while also optimizing inventory cost. The same outcome is demonstrated in the optimization of production and procurement processes.
- Improved responsiveness enables customers to trust the brand, build brand loyalty, and get quick responses.
- Improve decision-making cuts costs – modernization in the supply chain empowers customers to make better and faster decisions, especially on cost and cost savings.
- Opportunity to revamp existing processes and introduce new ones – process improvements can be readily executed to ease operations.
- Yield higher revenue – pricing strategies are ultimately focused on customer satisfaction. In turn, this expands markets, increases sales, and yields higher revenues.
- High Customer retention – with a high retention rate in a modernized supply chain management, customers tend to return to purchase products or services as a result of being satisfied with the supply chain service.
- Lower supply chain cost-optimized operations such as storage and warehousing reduces overall cost, forming part of the extensive supply chain strategy.
Every aspect of the supply chain modernization has substantially improved customer satisfaction and thus increases valuable trust from satisfied customers.
Reap the benefits of supply chain modernization today with Profound Logic’s help! Contact us at sales@profoundlogic.com or call us at 1-877-224-7768 to learn more.