Digitization Creates a Strong Value Chain: Generating Cost Reductions

Digitization itself is a means to an end; the end goal is to derive the most value from a supply chain, but a majority of companies are still struggling to advance. By Amber Road

November 6, 2018

Almost every business decision comes down to the bottom line.

  • What will it cost?
  • What will it save?
  • What is the return on investment (ROI)?

For global supply chains, the formula to define cost is incredibly complex, driven by a myriad of factors and considerations, some of which are unpredictable.

Long lead times, multiple levels of suppliers, in-transit inventory, layers of regulations, and thousands of miles in transit can each affect the bottom line. Without a clear picture of the supply chain, however, it can be difficult to see the factors contributing to product cost. How can companies leverage today’s technology to better determine cost and exceed expectations?

Digital Transformation

One way to reduce costs is through a digital supply chain platform. The digitization of data and the application of collaboration, automation, and analytics technology presents the opportunity to drive business value throughout the global supply chain.

In its realized state, a digital supply chain will enable you to reduce risk, improve agility, and reduce costs in many areas of your operation. Expressing that in numbers, IDC predicts that, by 2020, digitally-mature companies will achieve $430 billion in productivity gains over their less connected peers.

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