The supply chain industry is solely responsible for high growth rates and economic development in several Asian countries. Considering this, this industry cannot overlook the impact that the digital space has on it. As the development in technologies advances at an alarming rate, it can create more tools for efficient management in supply networks that can optimize supply chain performance.

The digital transformation of the supply chain incorporates creating systems that mirror the physical supply chain network. The digital transformation thus provides the companies with automated processes and real-time information which is much better than the traditional and costly methods.

The Importance of Digital Transformation

One way of understanding digital transformation would be the implementation of digital technologies into all areas of business for building more sustainable relationships and getting a better understanding of the customers.

Digital transformation allows you to push the boundaries and use innovative technologies to grow the business. It has become such an integral part of doing business that today, the only way to face it is to invite digitalization to transform your business. 

The Impact of Digital Transformation on Supply Chains

Digital transformation, as we discussed, has a tremendous impact on the supply chain. Let’s take a closer look.

Consumers Satisfaction

Digital transformation has allowed us to put consumers in the front line of the company’s operations. This allows the company to meet its buyers’ needs. Digital transformation has also shown a significant reduction in costs while delivering what the customers seek.

Data Analytics

Global supply chains are bound to generate exceptional amounts of data. By switching to a digital version, the historical records, supplier performance records, data related to costs etc., can be easily stored. Today, analytics can find problems and inefficient patterns that can save a lot of resources, time and money. It can also identify cost-reduction opportunities. 

Analytics is also capable of watching out for new risks and finding solutions for the current problem. It also evaluates performance while continuously suggesting improvements for the supply chain.

Real-Time Data

Digital supply chains have the ability to provide real-time data which can examine the company’s demand. This has also allowed the company to make a lot of information easily accessible which increases the efficiency and reliability of a variety of operations.

Relations With the Consumers

Digitalization has allowed companies to improve their relations with their consumers via e-commerce, digital marketing and most importantly social media. With the help of digital transformation, the visibility of an organization increases from 20% to 40%. 

Digital marketing can give supply chain managers a little more control in providing customers with what they want with transparency. 

Enhanced Data Collection

Businesses collect huge data regarding their consumers so that they can benefit and customize their businesses according to their needs. Digital transformation provides different functional units within the organization which can translate this data into insights that can be actually used in operations, production and finance. 

Better Decision-Making

With digitalization, the managers in this industry now lead an easier life because of the machine learning systems. These can provide supply chain managers with recommendations on how to deal with particular situations.


Automated operation can streamline operations and can allow professionals to focus on more important tasks. A digitalized logistics coordinator helps identify the inefficiencies and reduce transportation costs by 5-20%.


A digital transformation can help the company build a stronger business model and can provide a free hand in collaborating more effectively with both suppliers and consumers. 

The impact of digital transformation on the supply chain of industrial companies is thus humongous. Apart from being customer-centred and cost-effective, you get to make data-driven decisions to be more effective.


Here at Global Forwarding, we are consistently integrating these new technologies into our business to provide our clients with the most value possible. Contact us today for tailor-made shipping solutions for you and your business.