Business Chief Europe Magazine June 2020 | Page 72

DIGITAL STRATEGY

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Dr . Frank Himpel : Digitalisation is not without its challenges . Several technologies need to be integrated in a technology network that supports a data network ( e . g . the so-called cloud ), and both networks need to be linked to production capacities and forecasting methodologies . If one element of the entire setup is missing , or not fully operational , then the benefits might not be achieved . In other words , implementing digitalisation as a step-by-step approach , which is often cautious in nature , might not lead to success . Digitalisation is pretty much a binary system – either a system is being digitalised ( and if so , then all-encompassing ), or a system is not being digitalised more profoundly . Island-like solutions , such as those we have witnessed in past decades , where ERP systems co-existed with more traditional legacy systems , are not the way forward when it comes to the digitalisation of supply chain networks . Of particular relevance is the holistic , integrative , systemic implementation along all partners

and stakeholders of a supply chain network . And , to refer to a classical metaphor – the chain is only as strong as its weakest link .

Jaap Bruining : Another challenge in the digital supply chain is measuring the impact of supply chain technology , to determine improvements in efficiency and costs reduction . The importance of this came through loud and clear in research from Coyote Logistics last year . Supply chain professionals reported that , while measurement is

JUNE 2020