5 Companies Embracing the Supply Chain Digital Transformation
Transitioning to a digital supply chain offers myriad benefits, from lowered costs, to improved tracking and security, to a more efficient delegation of limited warehouse space—not to mention employees’ time and effort. Power players in various industries are partnering with digital start-ups to leverage emerging technologies to benefit their customers, as well as their bottom line.
From instant product demand planning to autonomous grocery delivery, let’s take a look at some of the ways that businesses, big and small, are leading the way in digital supply chain management solutions.
Procter & Gamble
As arguably one of the world’s biggest consumer packaged goods companies, Procter & Gamble is uniquely qualified to understand the complexities of shipping CPG. This is why P&G was one of the very first to recognize the benefits of transitioning to a digital supply chain, creating what is now widely recognized as one of the best in the world.
P&G partners with Kinaxis, an industry leader of supply chain planning software, and uses its RapidResponse product to establish integrated business planning (IBP) horizons for each of its products, rather than the company as a whole. Digitally mapping its thousands of products allows P&G to be incredibly agile in making necessary adjustments for a specific item. While some of its products require supply and demand planning once a month, others require it multiple times per day—an option that would be virtually impossible without the digital software to support it.
In an effort to better track and manage its supply chain as well as monitor food safety, food giant Tyson Foods turned not to its paper logbooks, but to a SaaS company—FoodLogiQ, a supplier management solution that has lead the way in digital food safety compliance and traceability.
FoodLogiQ’s supply chain transparency software allows companies like Tyson Foods to technology to consolidate supplier documentation as well as seamlessly track and report any issues with compliance or food quality. In Tyson’s case, turning to a digital supply chain solution helps the company “leverage data-driven reporting to help make informed decisions” related to all aspects of its business.
Additionally, FoodLogiQ deploys blockchain technology with select clients to help them create permanent, transparent, and shareable logs of every single transaction. Essentially a trail of digital breadcrumbs, blockchain tech helps FoodLogiQ’s clients eliminate waste and create fast, efficient records for superior food traceability and safety compliance.
In 2018, the grocery behemoth partnered with Silicon Valley startup Nuro to test an on-demand delivery pilot program using self-driving vehicles. After a successful launch in Scottsdale, Arizona, Kroger expanded its test to the much-bigger Houston, Texas metro area in March 2019.
Embracing the possibilities offered through autonomous vehicle delivery places Kroger squarely at the forefront of the traditional supply chain’s digital transformation. They not only have an opportunity to expand their services to a wider customer base—they’re also able to leverage data garnered from customer PII to tweak their own purchasing and marketing initiatives, better tailoring every Kroger location to its customers.
In 2018, Colgate partnered with Kolibree, a smart device company using artificial intelligence and the Internet of Things (IOT) to disrupt the oral health industry. Using Kolibree’s technology, Colgate introduced a toothbrush that connects to Wi-Fi and subsequently collects user data via a digital app. Colgate logs and analyzes this data to understand its customers’ oral health and habits. By crowdsourcing its research via smart technology, Colgate can get real-time feedback on its product development without deploying traditionally laborious and expensive resources like focus groups.
Additionally, the Colgate-Palmolive Company turned to automation to deliver customized products to its consumers and further enhance its supply chain technologies. They partnered with CPG supply chain experts Nulogy to digitize the way Colgate connects with its global suppliers, so that products could be quickly and easily adapted to specific retailers’ needs. This helps Colgate get the right products on the right shelves without mistakes or delays, as everyone is connected to the same platform.
According to George Bailey, managing director of the Digital Supply Chain Institute, “Algorithms are the heart and brains of the digital supply chain.” Flock Freight wholly subscribes to this idea, creating a cutting-edge proprietary algorithm that seamlessly connects LTL shippers and carriers to create ideal hauls on the most efficient routes.
Our cloud-based logistics platform digitizes many aspects of traditional LTL tracking processes and provides transparency rarely equaled in the freight industry. We replace physical hub-and-spoke terminals with digital technology to pool shipments through shared truckload (STL) service, removing the risks of loss or damage and resulting in a 97.5% on-time delivery performance. Quoting, ordering, and tracking are all completed via the Flock platform, providing a digital record of each and every shipment.