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            november 21, 2019

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Companies that fail to digitise will be left behind


German express delivery giant DHL says 95 per cent of supply chain and operations are not digitising operations fast enough, reports London's Air Cargo News.
DHL's report on global digitisation in the supply chain found that new technologies were developing fast, disrupting practices leaving the industry scrambling to keep up.
The survey of 350 supply chain professionals worldwide revealed that the vast majority were not taking full advantage of potential benefits of what analytics had to offer.
The report by Lisa Harrington, president of lharrington group LLC, showed that the industry was coping with the rise of digitisation in the supply chain.
Next-generation robotics, artificial intelligence (AI), autonomous vehicles (AV), blockchain, big data analytics and sensors are just some of the technologies that businesses must now embrace, she said.
Respondents ranked big data analytics as the most important information solution with 73 per cent reporting that their company was investing in this technology, ahead of cloud-based applications at 63 per cent, the Internet of Things (IOT) at 54 per cent, blockchain at 51 per cent, machine learning at 46 per cent and the sharing economy at 34 per cent.
Importance in physical hardware has focused on robotics with 63 per cent ranking it as the most important physical technology, beating AVs at 40 per cent, 3D printing at 33 per cent and augmented reality and drones at 28 per cent.
Said Ms Harrington: "There is no doubt that digitalisation is having an incredible impact on supply chains and operations across the globe and is here to stay.
"Companies are faced with many options as new products and applications enter the market and gain acceptance in the industry. Having a purposeful strategy for supply chain digitalisation is now essential to assess the new technological landscape and chart a way forward to reap the benefits and stay ahead of the competition," she said.
Businesses are beginning to test the waters, with 39 per cent reporting that they are developing one or more information or analytics solution, but only 31 per cent are doing the same for physical applications.
Said DHL Supply Chain development chief Jose F Nava: "This is a transformative juncture for the supply chain industry. The traditional model is facing unprecedented levels of disruption from new hardware technologies combined with information and analytics solutions.
"Technology offers considerable opportunity to reduce cost and improve profitability but it also means businesses that fail to adapt risk getting left behind," he said.

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