In the U.S., few retailers have completely undergone a digital transformation, although citing cost as the main barrier in their supply chain process. According to a study from Gravity Supply Chain Solutions, 85 percent of retailers are yet to digitize their supply chains. The study authors suggest that without digitization, retailers may not have full control over their supply chain. They are in the urge to depend on the manual processes. Many retailers face payment difficulties in the supply chain. According to Accenture, the global funding for payment companies has increased from $8 billion in 2017 to $12 billion last year.
Technologies like AI and blockchain have become promising factors to transform global trade. It connects trading partners and other supply chain players like financiers and auditors in a single online realm. The digital supply chain eliminates the time-consuming paper format of passing the trade information from one supplier to another.
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It is difficult for other parties to access the information soon because of paper documentation procedures. To address the problem, a single point is introduced in the cloud that allows all relevant data and documents to pass through it. The single connection point can be created using ML and AI to enable organizations to share documents on a safe and reliable platform. According to Eric Meek, CEO of FreightRover, integrating AI platform to accelerate invoice or supply chain financing helps in avoiding AI disruption to B2B payments and supply chain finances.
Although the digital supply chain offers more benefits, companies today are struggling to accept the transformation. Since the volatility of the global market is high, global companies are under pressure to improve the management of the supply chain. Many innovations have made organizations think again. Recently, JDA Software has created a new supply chain management platform that provides an end-to-end supply chain portfolio to organizations. Interconnectivity between supply chain organizations is essential to maintain compliance with regulations, assess the risk of third parties, and reduce trade errors. Companies have to be active in adopting AI and other technologies in their supply chain management to improve their internal processes.