The importance of digitizing the supply chain in times of crisis

Covid-19 has left the world on alert since December 2019, when the first focus of the disease was reported in Wuhan province, China. In just over two months, it arrived in Brazil and several countries on the planet.

The disease was recognized as a global pandemic by the World Health Organization (WHO), which oriented world leaders to take the required measures to reduce virus transmission. Therefore, thousands of corporations are adopting the home office model – all employees carry out their tasks at home, and meetings are held through on-line platforms, thus avoiding contact between people as much as possible.

In this scenario, companies that already have digitized their processes are at advantage, since the demands can be accessed and met from anywhere, as long as the employees have Internet access. For those businesses that haven’t reached this level of digital transformation yet, the moment requires a restructuring process.

The challenge of digitization

Keeping businesses running at 100% success rate, while all employees must work remotely, can be a major challenge for anyone working with supplies. But there are some contrivances made available to us by technology – which can be great allies at times like this one experienced by the planet during the pandemic. They are:

e-Procurement

It enables the buyer to manage all procurement processes in an on-line and centralized way, anywhere in the world. An e-Procurement solution digitizes the “Request”, “Quotation”, “Order”, “Invoice” and “Pay” modules, and adds intelligence – to free teams from manual, decentralized routines, with low level of compliance. Additionally, procurement costs decrease and professionals have more time to be strategic.

Product tracking

Businesses must keep digital records for product entry/exit at each stage of the supply chain. Such procedure assures a more accurate demand estimate, as well as improved management of products in stock.

Data management

It involves gathering and analyzing customer information, both internal and from the market as a whole. This qualifies the decision-making process and guarantees a more assertive demand forecast, with less waste and the ability to fulfill orders efficiently.

Internet of Things (IoT)

It has a prominent place as a highly transformative technological solution in the scope of logistics. It can assist companies in monitoring inventory on the go, as well as managing it in storage – in real time – and optimizing fleet routes.

With the Covid-19 pandemic, the business world will undergo a major evolution, as long as the homework is done in the right way. With all technology available on the market, businesses must add, to their strategy, the correct deployment of ideal solutions for their respective sectors. In this way, any impacts caused by unexpected situations can be circumvented, thus preventing major losses.

Last but not least, it’s vital that, in addition to technological solutions and digitized processes, digital culture is also rooted in people. Moreover, discipline and commitment, along with remote work, must be integral part of businesses’ daily management. If there is an opportunity for every crisis, this may be the best one to increase productivity and team engagement, and thus achieve a positive result, with lower operating costs.

* Fabrizio Tassitano is Product Director at MercadoE.

Subscribe to our newsletter to be updated on everything that happens in the B2B market!