Due to significant advancements in computer technology over the past 20 years and the recent COVID-19 health measures, businesses were forced to upgrade their practices to become more virtual. Therefore, we’re seeing more and more services becoming digital.
However, it isn’t just businesses that are taking their services online; various government sectors are also realizing the advantages of digital transformation and the benefits of automation. In this blog, we will be taking a closer look at Federal Government markets and what digital transformation means for them.
What Is a Federal Government Market?
A government market is a market where the main buyers are federal, state, and local governmental organizations. They purchase goods or services from private businesses. Government digital transformation involves the ongoing application of the latest technology to improve a government’s performance and help meet the expectations of today’s citizens.
Why Does a Federal Government Market Need Digital Supply Chain?
Responsible for managing some of the largest, most complex supply chains in the world, the federal government performs a wide variety of coordination functions, each with different business objectives. This makes the federal government well suited to adopting and implementing digital supply networks, each tailored to meet the diverse objectives of the numerous agencies under the federal government. Across the four federal archetypes that we identify here—buyer, seller, server, and regulator—the digital supply chain is poised to provide a strong value proposition equaling that of commercial businesses.
Let’s see in detail some of the benefits that a Digital Supply Chain can offer!
Benefits of a Digital Supply Chain Strategy
Improved Visibility into Supply Chain Performance
Compared to traditional supply chains, digital supply chains are more customer-centric. A digital supply chain provides significantly more visibility into its elements and moving parts. It also allows organizations to identify gaps that may cause disruptions and then address them accordingly.
Digitalization brings automation to business processes, which improves process efficiency, worker productivity, performance, and profitability. It eliminates the traditional paper-based, manual supply chain processes and removes manual data entry and the need for stakeholders to request updates via phone calls or emails.
Reduces Costs and Accelerates Innovation
A digital supply chain provides up-to-date, holistic information about performance, status, and requirements. This information helps manage and optimize processes such as raw material sourcing, process flows, operational logistics, inventory levels, forecasting, and resource planning.
Data and Advanced Analytics
Digitization is enabled by many data-driven technologies, including big data, machine learning, IoT, and predictive analytics. They can leverage data to identify inefficiencies, boost product quality, and enhance customer experiences. A digital supply chain can also provide advanced analytics that visualizes data so users can more easily learn from mistakes, make predictions, and improve decision-making.
Improve Supply Chain Planning
In traditional supply chains, spotting possible issues and predicting their likely effects can be laborious, time-consuming, and unreliable. On the other hand, in a digital supply chain, up-to-date, reliable data can be shared with all important players, enabling companies to anticipate issues and respond quickly before the problem escalates.
At Team 81, we help align supply chain technology with business processes to create a consistent and sustainable workflow by making digital supply chains autonomous and self-healing.
Learn how our expert team can enable supply chain digital transformation by identifying opportunities to improve alignment between supply chain technology and business processes. Get in touch with us today!