Case Study | Title: Digitalization of supply chain – Introduction and Technologies used - 4.0 - GRM Institute

Case Study | Title: Digitalization of supply chain – Introduction and Technologies used – 4.0

Submitted By: Sharvari Saraf (PGDRM Batch Jan 2020)

Mentor: Alumni


It creates a more visible supply chain stream across each touchpoint of the value chain. It’s a completely integrated sequence of planning, forecasting, and production solution that works at the time to create a more visible supply chain.


Benefits for the company:

  • Lower production and operational cost
  • Lead times
  • Enhanced reporting


Technologies being used in digitalizing supply chain


Technologies being used in digitalizing supply chain

  1. Predictive Analytics:
  • Developing a model that closely represents trends trying to understand.

How it’s done?

  • Testing various forecast models to determine that relate to reality.
  • Had seen a growth from 17% in 2017 to 30 % in 2019
  • Companies using predictive analytics: Google, Netflix, and Amazon

Where are the supply chain predictive analytics techniques being used?

Inventory Management

  • Helps to minimize the stock by allowing the organization to determine the optimal inventory level to satisfy demand.
  • Helps managers to determine detailed inventory requirements by region location and usage.
  • Helps to reduce safety stock levels.

Demand forecasting:

  • Analyzing past and current trends and together with market intelligence and economic forecast to forecast demand.

Shipping and logistics:

  • Useful to figure out optimal shipping frequency and quantity to meet demand while minimizing cost.


  1. Automatic Replenishment solutions
  • Basically, a computerized system that analyses inventory levels and lead time and reorders stock to meet forecast sales needs.
  • Advanced algorithms used for demand forecasting and order generation.
  • Spreading of risk.

What is used?

  • Applied basically in vendor managed inventory environment where the responsibility of vendor for the availability of product at location and flexibility to determine when to replenish them.


  1. Pick and placed robots
  • Used in Modern manufacturing environment, help to increase the production process.

Types of pick and place robots:


4. IOT sensors to gather real-time feedback from manufacturing equipment and vehicle:

Sensors can be used to get real-time updates about them, allowing companies to optimize logistics to streamline and accelerate the process and unwanted costs. Tracking products in real-time allows companies to maintain the quality of their finished goods maintained inventory levels and even prevent theft.

Types of Sensors:



Despite various perks of digitalizing the supply chain there exist various challenges in it.

  1. Adapting to changing government regulations gets difficult.
  2. It’s certainly not a small task. A small issue in the digitalized supply chain at times may upset the entire business model.

But still, the perks are far more for large companies, which may improve effectiveness and efficiency in the business model.

As per the Gartner Report:

” Till 2023, it is expected that 50% of the companies across the globe would be using advanced analytics, AI in its supply chain operation and in a decade people would prefer to rely on digitalized supply chain across various sectors.”



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