Digital Capabilities for Supply Networks and Impact on Trade

Digital supply networks (DSNs) to enable organizations to anticipate, sense, and respond to unexpected changes and minimize their impacts.

Source by Deloitte Insights

Before we explaining and examine related with digital supply networks and impact on trade ,

Explaining of what is global value chain and relation with supply chain resilience beneficial to understand clearly the process.

Today’s digital era has been defined by a series of disruptive trends that have rendered traditional linear supply chain inefficient.

Customer behaviours and expectations are also changing dramatically, challenging the established supply chain and operations setups of leading industrial companies.*

Supply chains are also increasingly facing major disruptions such as changing and extreme weather conditions, global health crises and supply shortages.

These disruptions and challenges forcing to industries and businesses to research, develop and practice new methods, models to survive in the markets.

As a result also this leading to creating new lean methodologies;

Supply chains are becoming more integrated with multiple value chain partners.

They’re also becoming not just automated but autonomous — able to act with limited human intervention — and ultimately self-orchestrating.

If you curious and would like to research what is literally Industry 4.0 and how to impact of supply chain and trade you will check it out my below article ;

What is Supply Chain 4.0 ?

Supply chain 4.0 is the re-organization of supply chains — design and planning, production, distribution, consumption, and reverse logistics — using technologies that are known as “Industry 4.0”.

Source Hammelscale Industry 4.0 , WTO Global value chain report

Transition to linear to dynamic supply chain segmentation enhances customer centricity and continuously balances service levels.

Supply chain segmentation is the design and operation of distinctly different end-to-end supply chains from suppliers to customers

Source by PWC Supply Chain 2025 report

On the other hand By simulating all aspects of the supply chain, a digital twin makes it possible for companies to dynamically respond to customer demands at the transaction level.

Source by PWC Supply Chain 2025 report

The values of corporate purpose, trust, and sustainability have also become more important at the this time.

The key to automated, predictive, and prescriptive operations in the post–COVID-19 world lies in the interconnectivity of digital tools, physical infrastructure, and their underlying data streams.

Source by Deloitte insights

In fact, as linear supply chains evolve into DSNs, the companies best positioned for growth may be those that see these networks as core to their business, technology, and operational strategies.

The DCM(Digital Capabilities of Model) aims to increase organizational intelligence by aligning traditional silos to work together and leveraging capabilities and data to create an integrated supply network.

Source by Deloitte analytics

The connections between the level 2 capabilities make it possible to follow a digital thread throughout the DCM.

Source by Deloitte analytics

Compatible with the Supply Chain Operations Reference (SCOR) Digital Standard, the new model helps companies advance their capabilities from traditional linear supply chains to digital supply networks, the dynamic, interconnected systems that simultaneously plan, execute, and enable digital supply “chains”.*

The DCM serves as an important tool that helps companies articulate and build the digitally enabled capabilities required to transform their linear
supply chains into connected, intelligent, scalable, customizable, and nimble digital supply networks.

Source: Accenture 2020 Supply Chain Survey and analysis based on CapIQ data

Companies with robust supply chains are showing resiliency through this crisis, combined with a responsibility not just to the business, but also to the greater good of society.

Global megatrends, including shifting geopolitical and trade alignments, climate change and the emergence of disruptive technologies, are reshaping manufacturing and supply chain networks.

References;

-Digital Capabilities Model

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