Despite the digital transformation and the automation of various business and industrial processes, there are five principles of supply chain that never change.
- The main objectives of supply chain do not change. This is to develop and manufacture product X and to sell and deliver the same to customer Y in such a way that the greatest profit margin is achieved. Despite the availability of automated tools and the Industrial Internet of Things, this process remains the same.
- Supply chain transparency will always be important. Machine learning and artificial intelligence have only changed the method of data analysis. The success of supply chain is still dependent on the monitoring, maintenance and control of different information.
- Understanding the customer is crucial. Personalized attention to customer groups is a key differentiator in supply chain. The availability of digital technologies and tools now make it easier to project future needs, track customer history and personalize products and services.
- Business ethics is essential. A growing number of B2B customers are demanding greater corporate social responsibility from their suppliers. Customers prefer more socially and ethically aware suppliers. Hackett Group Research director Laura Gibbons also said that supplier diversity is becoming a strategic enabler that helps increase market share in new and developing communities and provides access to innovative products.
- It is important to adapt to technological revolution. Companies need to stay abreast of new technologies and digital trends and continue to find innovative solutions in order to differentiate their business from competitors.