Digital Supply Networks

Many consultants describe digital transformation as the process of moving from

an analog supply chain to a digital supply network (DSN). A DSN is essentially a

supply chain in which all of the suppliers are connected and all of the processes

are automated. DSNs function based on programming and sensors, and react to

changes using AI. The book, Digital Supply Networks: Transform Your Supply Chain

and Gain Competitive Advantage with Disruptive Technology and Reimagined Processes

by Amit Sinha, Ednilson Bernardes, Rafael Calderon, and Thorsten Wuest (McGraw

Hill; 2020), highlights six key capabilities for a DSN:

» Digital development: Designing products using tools like computer aided

design, and building prototypes using 3D printing.

» Synchronized planning: Ensuring goals and constraints are shared across

business functions, and with supply chain partners.

» Intelligent supply: Automatically ordering only what is needed, from the right

suppliers, at the right time.

» Smart factory: Sensors and AI that manage production to optimize yield and

capacity utilization while minimizing inventory.

» Dynamic fulfillment: Taking orders and filling them automatically, within the

time and cost constraints that your customers expect.

» Connected customer: Continuous engagement with customers, whether that

is to encourage them to purchase new products or to receive feedback about

past purchases.

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