Services
Cognitive Business Operations
Unlock Business Agility and Future-ready Operations with TCS
Highlights
- Global supply chain operations have seen tumultuous times in recent years and remain vulnerable to geopolitical tensions and natural disasters.
- Enterprises need supply chains resilient enough to outpace any disruptions and agile enough to keep pace with consumer expectations.
- With the right blend of technology and data, and by focusing on three key tenets, businesses can build resilient and agile supply chains that can withstand headwinds and contribute to a greener world.
On this page
Resilience is key
Enterprises need to create resilient supply chains that can ensure seamless operations no matter the disruption roiling the market.
Historically, global supply chains have been hit by geopolitical tensions, natural disasters, and demographic shifts from time to time. The impact, however, has been mostly local and temporary. The Covid-19 pandemic was the first time that the chinks in global supply chains were exposed to such a large degree. This was a turning point when enterprises realized that their supply chains needed to be resilient enough to outpace any disruptions. The kind that would ensure seamless operations no matter what’s roiling the market.
Customer expectations
Changing consumer expectations and values are also putting pressure on enterprises to create more resilient and agile supply chains.
The combinatorial effect of the digital economy, social media, and digitally adept generations, particularly millennials and Generation Z, has brought a major shift in consumer expectations. Today's consumers yearn for speed—they want to track their purchases in real time and are more discerning than ever. Even a minor disruption in the supply chain could drive them away.
Consumers are also becoming environmentally conscious, adopting eco-friendly lifestyles and products. Meanwhile, governments and regulators have put in place stringent laws. For instance, reporting of Scope 3 emissions generated beyond a business’ boundary is now a legal requirement in many countries. There’s increasing pressure on companies to monitor and disclose their sourcing practices, production, distribution, and other aspects of their supply chain to stakeholders including consumers and investors.
All this has made prioritizing sustainable supply chain operations more important than ever.
Three tenets
The growing emphasis on resilience, agility, and sustainability demands future-ready supply chain operations.
Focusing on three key tenets is a must for building future-ready supply chain operations:
- Digital at the core: Digital transformation and integration of technologies with supply chain operations play a crucial role in speeding up processes and adapting to disruptions. New technologies such as generative AI (GenAI) can provide real-time guidance to supply chain professionals on inventory, demand, risks, and future requirements, creating more dynamic and responsive supply chains. This helps businesses avoid supply bottlenecks and respond more swiftly to changing market dynamics. Companies are already leveraging technologies such as digital twin to derive detailed operations insights that enable predictive maintenance and supply chain optimization. Many are also using digital solutions and platforms available in the market to reduce carbon and Scope 3 emissions. Such platforms provide a centralized system for suppliers to input their emissions data. The data can then be easily integrated into a company’s sustainability reporting or help the company make decisions on sourcing materials only from suppliers who follow sustainability norms.
- Data-driven: High-quality data is still one of the core assets used to streamline and optimize end-to-end supply chain processes. Supply chain professionals can leverage tools powered by artificial intelligence (AI) and GenAI to analyze vast amounts of data from various sources and use the insights to drive optimum sourcing decisions across the supply value chain. This can reduce costs and ensure product availability to meet growing customer expectations. Data analysis is a critical part of inventory management, and the latest advancements in technologies, such as GenAI, allow more accurate analyses of past data and other relevant data. This, in turn, allows companies to better predict consumer demand and ramp production up or down as required.
- Connected operating models: A future-ready supply chain will be supported by a highly digital and connected infrastructure. This connectivity will enable all stakeholders in the supply chain to collaborate in real time—to optimize routes for transporting products, reduce delays, and cut costs. Imagine a system where suppliers, manufacturers, and logistics providers continually share data, making instantaneous decisions about, say, the best shipping routes, just like how Google Maps helps drivers navigate traffic in real time, providing updates on the fastest routes and avoiding congestion. Integrating AI, internet of things (IoT) sensors, real-time analytics, and digital platforms will be crucial in achieving this vision. All parties involved will be able to seamlessly access real-time data and work together to ensure the most efficient transportation and logistics methods are always in play.
Innovation focus
Innovate for the future with the right blend of technology, data, and guiding tenets.
Global supply chain operations have seen tumultuous times and remain vulnerable to geopolitical and other disturbances. However, with the right blend of technology, data, and guiding tenets, businesses can innovate and build resilient, efficient, agile, and sustainable supply chains of the future capable of withstanding headwinds and keeping pace with consumers.
