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What Do Roads in Rural Bali Have to Do With Supply Chain Digitization?

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Supply Chain Digitization Relations With Roads in Rural Bali

Digitization is the buzzword of the moment in Supply Chain.

This Article will Brief you about Supply Chain Digitizations.
Going by the number of articles and posts on digitization, you would think that the pope has just discovered religion.

In fact, I recently read an article which used the word ‘digitization’ nearly 100 times in about 4 paragraphs.

It talked about demand digitization, supply digitization, inventory digitization, fulfillment digitization, planning digitization, and many such things.

Is this really that new? Since the days of SAP (late 80s), or before, digitization has been gradually gaining pace.

Yet, current articles are making out as if there is a switch you flick – and suddenly you have ‘light – aka digitization’

Reality is far more interesting and juicy.

Thinking of digitization, I was reminded of our business transformation projects and trouble with getting accurate data.

Despite spending hundreds of millions of dollars on ERP systems, (and in many cases over a billion dollars), most companies still fall way short in terms of their data – both in terms of accuracy and completeness.

Before starting almost every project we are assured that the data will be in our hands within a few days – at the most.

The Nature Of Things on Supply Chain Digitization

But, this blog post is not about the barriers to digitization, rather it is about the nature of digitization itself.

Why the data is not readily available, and why is it of such poor quality that it is barely useful for most analysis – this discussion will open up a pandora’s box of pent up feelings within the companies.

Who To Blame on Supply Chain?

Most technology companies are clueless about the human element, and continue to plough ahead in darkness – and blame their customers for technology failures.

The belief that it is a binary switch where you get technology and suddenly your company is ‘digitized’ is far from reality.

Recently, I had the occasion of spending nearly a month on a sabbatical and family holiday in the island of Bali.

Gradual And Constant Effort on Supply Chain Digitization

Most island roads were however, still narrow village paths paved over for modern transport.

All this existed simultaneously at the same time and will continue to exist well into the future – with gradual upgrades from one level to next over the years.

Effort Can Be Hastened on Supply Chain Digitization

That is the state of Supply Chain digitization and will continue to be, with gradual upgrades from one level to next well into the future.

We have no Y2K type crisis (remember that?) that will force upgrades, and dollars are scarce in most companies that do not enjoy some historical or political advantage.

No amount of hype from IT vendors is going to change this reality. Also, CEOs and CFOs of long memories of past IT projects that failed to fully deliver.

Perhaps the next generation of executives will be gullible enough to fall for the same hype again.
That is How Supply Chain Digitization Connects With The Roads in Rural Bali.

You can find comments on “Supply Chain Digitization Relations With Roads in Rural Bali ?” article on LinkedIn.

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That is the state of Supply Chain digitization and will continue to be, with gradual upgrades from one level to next well into the future.


Author: Vivek Sood

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About the Principal Author of Outsourcing 3.0 - Vivek Sood

Vivek Sood - Author Outsourcing 3.0

Today, Vivek and his partners are among 20-30 people on Earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in the most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:Started in 1983 as a merchant navy cadet at 18 years age, and worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.

  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in the supply chain – against all odds, sought out the co-inventor of the supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue-chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path-breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities, and libraries worldwide.

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