April of this year saw us pass the one-year anniversary of the Suez Canal incident, where one ship – the Ever Given – singlehandedly (or ‘singlerudderly’ to be more accurate) halted major international trade and wreaked havoc upon global supply chains.
At the time, questions were asked about how it could even happen. How could organisations be so reliant upon one single stretch of river that the ripples of its blockage could be felt across the entire world. All of this before the Ever Given’s sister ship – the Ever Forward – similarly ran aground in the Chesapeake Bay almost exactly one year later.
Whilst the second ship had less of an impact on the global supply chain, it was still a reminder that these disruptive events can happen anytime, anywhere. So, are organisations looking at how they manage future disruptions like this? If they aren’t, it's time to act now. And to go digital.
Mixing a little digital into the physical
We have all seen the headlines around the disruption to supply chains – be it thanks to lodged ships or COVID – and the fact they have caused missed deliveries, entire just-in-time systems to go down, unpredictable stock levels, and much more.
The critical issue is that these days, it is not enough for organisations to be able to see what is going on across their supply chain. In order to get ahead, they must be able to adapt and predict what needs to happen before it does.
This is where the industry has had to lean further into digital solutions: to get ahead. Across the entire supply chain, the most resilient businesses are now using modern, automated cloud-based applications (rather than spreadsheets or manual processes) to enable them to leverage technologies such as advanced analytics and AI. And the key word is cloud with many companies using the cloud to help them move beyond their current supply chains as they understand cloud based integrations can help them seamlessly connect their internal and external systems as well as create powerful new operating models.
While not entirely unbeatable, these kinds of advanced technologies have enabled some businesses to better weather the storm of supply chain issues we have seen these past few years. The businesses themselves being able to use predictions to come up with predefined crisis approaches to head off problems.
So, everyone is digital in 2022, right?
While creating a fully integrated cloud-based “digital backbone” may be key to getting real-time insights to improve decision making and rapidly on-board of new suppliers, that unfortunately does not mean that everyone is digital just yet.
In a late 2021surveyconducted by the Harvard Business Review Analytic Services, over one quarter (26%) of best-in-class companies were found to be lagging behind in their journey to digitalisation across supply chain functions. With nearly half (46%) only just starting to follow the leaders now.
In a late 2021
survey
conducted by the Harvard Business Review Analytic Services, over one quarter (26%) of best-in-class companies were found to be lagging behind in their journey to digitalisation across supply chain functions. With nearly half (46%) only just starting to follow the leaders now.
Fortunately, however, all hope is not lost – progress is expected. In early 2022 Gartnerresearchpredicted that over the next three of five years, there will be a substantial increase in the adoption of digital supply chain technology.
Fortunately, however, all hope is not lost – progress is expected. In early 2022 Gartner
research
predicted that over the next three of five years, there will be a substantial increase in the adoption of digital supply chain technology.
So, will we ever be in a position to cope if another Ever Given problem comes along? Well, while our current predicament may suggest otherwise, there are early signs that the future may just be looking a little brighter for supply chains thanks to digital advancements. Now, we just need to see if our predictions are right!