{"id":925,"date":"2021-09-03T13:38:38","date_gmt":"2021-09-03T18:38:38","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/supply-chain-transformation\/"},"modified":"2026-04-20T20:47:56","modified_gmt":"2026-04-20T20:47:56","slug":"supply-chain-transformation","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/supply-chain-transformation\/","title":{"rendered":"Supply Chain Digital Transformation 101: 8 Ways to Transform Your Supply Chain"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is supply chain transformation?<\/a><\/p>\n\n\n\n

Why supply chains are going digital<\/a><\/p>\n\n\n\n

8 ways you can transform your supply chain<\/a><\/p>\n\n\n\n

4 signs your supply chain is ready for a digital transformation<\/a><\/p>\n\n\n\n

How ShipBob\u2019s tech-enabled 3PLs help you create a consistent customer experience<\/a><\/p>\n\n\n\n

Supply chain transformation FAQs<\/a><\/p>\n\n\n\n

<\/a><\/p>\n<\/div>\n\n\n\n

Walmart founder, Sam Walton, once famously said, <\/span>\u201cMany of our best opportunities were created out of necessity.\u201d<\/span><\/i><\/p>\n\n\n\n

Online retailers who have embraced digital supply chain transformation try to stay ahead of supply chain disruptions (and even did so to combat common logistics challenges that came under the limelight during the pandemic).<\/span><\/p>\n\n\n\n

Though the COVID-19 pandemic isn\u2019t forever, the push towards digital logistics<\/a> transformation will continue to support retailers as they build<\/span>supply chain resilience<\/span><\/a> and get prepared for almost anything \u2014 e.g., a sudden influx in demand,<\/span>logistics procurement<\/span><\/a> disruptions, natural disasters, a warehouse closure, etc.<\/span><\/p>\n\n\n\n

Supply chain digitization not only builds a more agile supply chain<\/a>, but it also allows brands to grow faster by automating processes, reducing human error, and gaining full visibility to understand how to best optimise their supply chain. <\/span><\/p>\n\n\n\n

Transforming a traditional supply chain into a tech-enabled, on-demand logistics<\/a> operation is one of the best ways to stay competitive and meet customer expectations around fast, accurate, and affordable delivery. <\/span><\/p>\n\n\n\n

This article offers a roadmap on how to move forward with supply chain digital transformation and how partnering with a 3PL like ShipBob can help. <\/span><\/p>\n\n\n\n

What is supply chain transformation?<\/h2>\n\n\n\n

Digital supply chain transformation refers to the overhaul of a traditional supply chain management process into one that is technology-enabled. <\/span><\/p>\n\n\n\n

This includes the implementation of the latestlogistics innovations, such as automation, data and analytics, robotics, and AI learning.<\/span><\/p>\n\n\n\n

The goal is to create a more<\/span>efficient supply chain<\/span><\/a> that is fast, resilient, and more sustainable. <\/span><\/p>\n\n\n\n

Why supply chains are going digital<\/h2>\n\n\n\n

The<\/span>COVID-19 pandemic<\/span><\/a> has brought many supply chain challenges to the surface.<\/span><\/p>\n\n\n\n

From rising customer expectations to the need for higher visibility across a distributed supply chain, online brands that want to be around long-term have no choice but to invest in the latest technology and automation solutions to build a stronger<\/span>retail supply chain<\/span><\/a>.<\/span><\/p>\n\n\n\n

Here is an overview of why supply chains are going digital (and succeeding, like Walmart\u2019s supply chain)<\/span><\/p>\n\n\n\n

Meet customer expectations<\/h3>\n\n\n\n

What customers want, customers get \u2014 be it faster delivery,<\/span>free shipping<\/span><\/a>, or hassle-free returns. If you can\u2019t offer it, they will look elsewhere. <\/span><\/p>\n\n\n\n

Embracing the latest in<\/span>supply chain technology<\/span><\/a> to meet customer expectations is the one of the best ways to stay competitive. With online giants like Amazon and<\/span>Walmart Marketplace<\/span><\/a> setting high standards, technology can help a small to mid-size online brand create a Prime-like experience. <\/span><\/p>\n\n\n\n

By automating time-consuming and error-prone tasks throughout your supply chain, you and your logistics team can focus on expanding coverage, improving workflows, and determining how to optimise logistics to get products to where they need to be in the most affordable and fastest way possible.<\/span><\/p>\n\n\n\n

Reduce labour costs<\/h3>\n\n\n\n

Manual warehouse management processes only slow down your supply chain velocity<\/a>, lead to higher costs, and are also more prone to human error. <\/span><\/p>\n\n\n\n

Warehouse automation<\/span><\/a> can reduce the man-hours spent on repetitive, time-consuming tasks, such as<\/span>order processing<\/span><\/a>,warehouse picking, and shipping. Once your supply chain labour costs drop drastically, you can pass on the savings to customers (such as offering free or affordable 2-day shipping). <\/span><\/p>\n\n\n\n

With automation, your warehouse team can also free up time to focus on accurately packing orders and enhancing the customer experience.<\/span><\/p>\n\n\n\n

Access to data that helps uncover areas for improvement<\/h3>\n\n\n\n

As you expand your operations, you will need accurate data that gives you insights into how operations are performing, so you can make informed decisions and measurable improvements. <\/span><\/p>\n\n\n\n

Supply chain forecasting<\/span><\/a> technology is an essential if you want to better manage performance, optimise operations, and prepare for the unexpected. <\/span><\/p>\n\n\n\n

For instance, by implementing<\/span>real-time inventory management<\/span><\/a> software,<\/span> changes in inventory levels are automatically updated. <\/span><\/p>\n\n\n\n

This way, you can view accurate inventory accounts at any time, have a better understanding on when it\u2019s time toreplenish inventory based on historical data, and better manage SKUs by understanding which products are in high demand. <\/span><\/p>\n\n\n\n

Real-time supply chain visibility<\/a><\/h3>\n\n\n\n

Technology provides business owners and logistics managers the ability to oversee operations without needing to involved in the day to day, so they can track performance and make improvements to their<\/span> ecommerce supply chain<\/span><\/a>.  <\/span><\/p>\n\n\n\n

From warehouse receiving processes to last-mile delivery<\/a> times, having insights into how your supply chain is performing can help you optimise operations, make improvements, and easily expand your supply chain by having the right data at your fingertips. <\/span><\/p>\n\n\n\n

8 ways you can transform your supply chain<\/h2>\n\n\n\n

There has never been a better time for online retailers to switch from a traditional to a digital supply chain. <\/span><\/p>\n\n\n\n

There are several digital transformation solutions on the market that make it easy for online brands of all sizes to adapt a digital supply chain transformation, from inventory management solutions to automated shipping. <\/span><\/p>\n\n\n\n

Here are the eight ways on how you can transform and digitize your supply chain. <\/span><\/p>\n\n\n\n

1. Predict future demand<\/h3>\n\n\n\n

Intelligent<\/span>demand forecasting<\/span><\/a> enables you to better predict customer demand and future trends, so you can prepare for slower or faster seasons, an influx in sales, and other predictions that make<\/span>supply chain planning<\/span><\/a> much more effective. <\/span><\/p>\n\n\n\n

The best way to forecast demand is by cutting out the guesswork by implementing technology that collects, records, and tracks real-time inventory and sales data to analyse inventory turnover performance over time.<\/span><\/p>\n\n\n\n

For instance, ShipBob\u2019s<\/span>3PL software<\/span><\/a> offers built-in inventory management software, so merchants can view historical sales data to make decisions on budget, <\/span>production lead times,<\/span><\/a> storage, and<\/span>product pricing<\/span><\/a>.  <\/span><\/p>\n\n\n\n

2. Implement an inventory management system<\/h3>\n\n\n\n

No more counting SKUs physically or recording inventory into Excel or ledgers.<\/span><\/p>\n\n\n\n

One of the most accessible technology solutions on the market is an<\/span> inventory management system<\/span><\/a>, which gives you the ability to track inventory in real time, and across sales channels and<\/span>distribution centres<\/span><\/a>.<\/span><\/p>\n\n\n\n

Whether you decide to invest in a robust<\/span>ERP inventory system<\/span><\/a> or a more simple and affordable<\/span>inventory app<\/span><\/a>, the ability to view, track, and <\/span>manage inventory<\/span><\/a> while measuring performance over time is an essential part of running an effective and lean supply chain<\/a>.<\/span><\/p>\n\n\n\n

Accurate inventory levels and reporting can ensure you\u2019re not overpaying in storage while also avoiding<\/span>stockouts<\/span><\/a> and the accumulation of<\/span>dead stock<\/span><\/a>. <\/span><\/p>\n\n\n\n

It also makes it much easier during tax season, since you can easily generate <\/span>inventory reports<\/span> without the need for frequent, time-intensive <\/span>inventory audits<\/span><\/a>.<\/span><\/p>\n\n\n\n

3. Explore warehouse robotics<\/h3>\n\n\n\n

Digital warehousing<\/span><\/a>, which involves using high-tech equipment and labour-focused processes, helps improve workflows, reduce warehouse costs, improve warehouse safety<\/a>, and maintain a high order accuracy rate.  <\/span><\/p>\n\n\n\n

Warehouse robotics that automate processes such as<\/span>warehouse picking<\/span><\/a>, packing, and shipping are not uncommon, and more logistics operators are investing in robotics to save on time and costs in the long run. <\/span><\/p>\n\n\n\n

This way, logistics teams can concentrate on more complicated processes, such as packaging innovations, workflows, and more.<\/span><\/p>\n\n\n\n

Aside from robotics, digital supply chains are also being powered by automated guided vehicles, aerial drones, and automated storage and retrieval systems.<\/span><\/p>\n\n\n\n

4. Opt for integrated technology<\/h3>\n\n\n\n

To achieve<\/span>supply chain optimisation<\/span><\/a>, especially at a time when order loads are increasing exponentially, it\u2019s important to choose technology that easily integrates with your supply chain. <\/span><\/p>\n\n\n\n

When implementing technology, make sure it seamlessly fits into your existing or desired tech stack. A well-connected tech stack can include everything from inventory planning<\/a> to<\/span>returns management<\/span><\/a>, to<\/span>freight shipping<\/span><\/a> solutions.<\/span><\/p>\n\n\n\n

For instance, ShipBob\u2019s<\/span>order fulfilment<\/span><\/a> technology offers direct integrations with dozes of ecommerce solutions, creating an<\/span>end-to-end ecommerce solution<\/span><\/a>.<\/span><\/a><\/p>\n\n\n\n

5. Invest in IoT<\/h3>\n\n\n\n

If you\u2019re unfamiliar with the acronym, IoT is short for \u201cInternet of Things,\u201d referring to the online networks of devices and objects that communicate with other devices in the same network through their connection to data centres.<\/span><\/p>\n\n\n\n

Using a network of RFID chips, smart devices, and mobile sensors, you can collect and exchange real-time data about your inventory, location, storage conditions, as well as handling and speed of movement of inventory.<\/span><\/p>\n\n\n\n

Ultimately, IoT can help improve internal communication transparency and increase supply chain planning precision.<\/span><\/p>\n\n\n\n

6. Increase cybersecurity<\/h3>\n\n\n\n

The downside to implementing new technologic systems is that your supply chain is more at risk of data breaches, identity theft<\/a>, ransomware, and other cyberattacks<\/a>.<\/span><\/p>\n\n\n\n

Modern security technology reduces risk and enhances protection. Encryption, tokenization, on-demand access, and automatic alerts are all security enhancements that should be used within a tech-enabled supply chain. <\/span><\/p>\n\n\n\n

Regardless of whose information is being exposed, cyberattacks can cause<\/a> major security breaches throughout the supply chain, which can also put customer data at risk. <\/span><\/p>\n\n\n\n

7. Install a warehouse management system<\/h3>\n\n\n\n

If you<\/span>manage a warehouse<\/span><\/a>, a<\/span>warehouse management system (WMS)<\/span><\/a> is a must. <\/span>A WMS monitors and controls daily operations in a warehouse, ensuring inventory is received, stored, picked, packed, shipped, and replenished in an efficient way. <\/span><\/p>\n\n\n\n

Warehousing<\/span><\/a> involves a lot of moving parts, including the constant flow of inventory, from receiving and picking, to packing orders and preparing them for shipment.<\/span><\/p>\n\n\n\n

Without insight into<\/span>stock availability<\/span><\/a> and where items are located, it can slow down the fulfilment process, resulting in<\/span>backorders<\/span><\/a> and<\/span>split shipments<\/span><\/a>. <\/span><\/p>\n\n\n\n

With a WMS, you can optimise your<\/span>ecommerce warehouse<\/span><\/a> by reducing inefficiencies and enabling more visibility.<\/span><\/p>\n\n\n\n

8. Expand through cloud computing<\/h3>\n\n\n\n

Thanks to cloud computing, the ability to communicate and share data can be done quickly and cost-efficiently.<\/span><\/p>\n\n\n\n

The benefit of ecommerce is not only can you sell to anyone directly from your online store, but you can also establish a<\/span>multichannel retailing<\/span><\/a> strategy by expanding into different sales channels.<\/span><\/p>\n\n\n\n

Expanding an ecommerce business is made possible partly by using<\/span>cloud-based computing<\/span><\/a> solutions, which provide the logistics industry with low-capital technology advancements that easily record and aggregate data, and provide full visibility into an entire supply in real time.<\/span><\/p>\n\n\n\n

This allows merchants to <\/span>outsource fulfilment<\/span><\/a> to a provider like ShipBob while still having access to data in real time to maintain control and oversight. <\/span><\/p>\n\n\n\n

\n

\u201cWe are very impressed by ShipBob\u2019s transparency, simplicity, and intuitive dashboard. So many 3PLs have either bad or no front-facing software, making it impossible to keep track of what\u2019s leaving or entering the warehouse.<\/span><\/em><\/p>\n\n\n\n

On the supply chain side, I just throw in what we placed at the factory into a WRO in the ShipBob dashboard, and I can see how many units we have on-hand, what\u2019s incoming, what\u2019s at docks, and so on. I can see all of those numbers in a few seconds, and it makes life so much easier.\u201d<\/span><\/em><\/p>\n\n\n\n

Harley Abrams, Operations Manager of SuperSpeed Golf, LLC <\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n

4 signs your supply chain is ready for a digital transformation<\/h2>\n\n\n\n

Due to high standards and expectations around accurate, fast, and reliable delivery, the entire<\/span> logistics<\/span> industry is already making changes and investing in the latest technology to stay competitive and meet demand. <\/span><\/p>\n\n\n\n

Here are the four major signs it\u2019s time to put your supply chain through a digital transformation<\/a>.  <\/span><\/p>\n\n\n\n

1. You fail to meet customer delivery deadlines<\/h3>\n\n\n\n

Are you regularly unable to meet customer expectations around fast shipping? <\/span>If yes, it might be time to find ways in which technology can help you speed up the process.<\/span><\/p>\n\n\n\n

For instance, if orders are taking too long to process or fulfilment is being delayed due to inaccurate inventory counts, implementing technology to automate inventory tracking can free up time and provide insights into how to improve.<\/span><\/p>\n\n\n\n

For instance, ShipBob\u2019s fulfilment technology enables faster shipping and delivery<\/a> by analising your customer data to optimise where your orders ship to. From there, inventory can be strategically split across different fulfilment centres of your choice (e.g., reaching different regions of a country) and then sent from the warehouse that is located closest to the customer.<\/span><\/p>\n\n\n\n

When your orders travel less distance, you reduce both shipping costs and time in transit.<\/span><\/p>\n\n\n\n

\n

\u201cShipBob has been a great ally as they have fulfilment centres all over the US, facilitating a 2-3 day delivery time for any customer in the US.\u201d<\/span><\/i><\/p>\n\n\n\n

Andrea Lisbona, Founder & CEO of<\/span>Touchland<\/span><\/a><\/p>\n<\/blockquote>\n\n\n\n

2. You have a high order return rate<\/h3>\n\n\n\n

When the supply chain processes are not optimised, you often encounter higher<\/span>ecommerce returns<\/span><\/a> rates due to inaccurate picking and packing (AKA mis-picks and damages). <\/span><\/p>\n\n\n\n

To reduce customer disappointment and high inventory return costs, adopting a digital solution can provide more visibility into the fulfilment process, therefore detecting any inefficiencies.<\/span><\/p>\n\n\n\n

From there, you can work on improving processes to reduce the number of returns due to mis-picks and other errors.<\/span><\/p>\n\n\n\n

For instance, ShipBob provides access to a wide range of<\/span>distribution metrics<\/span><\/a> that can help merchant calculate a <\/span>perfect order metric<\/span><\/a>, as well as other KPIs to easily monitor performance.<\/span><\/p>\n\n\n\n

3. Siloed supply chain communication<\/h3>\n\n\n\n

Traditional inventory management lacks the ability to trackinbound and outbound logistics operations (and sometimes even within a warehouse), which hinders communication between teams and <\/span>third-party logistics<\/span><\/a> companies.  <\/span><\/p>\n\n\n\n

When all parties that are involved in operating a single supply chain don\u2019t communicate efficiently, it can be almost impossible to expand due to a lack of timely information being shared. <\/span><\/p>\n\n\n\n

Let\u2019s say you sell across multiple sales channels. Without proper inventory counts being tracked across channels, it can lead to inaccuracies, higher costs, and lower customer satisfaction, whereasdigital inventory management can track inventory levels in real time across a distribution network. <\/span><\/p>\n\n\n\n

\n

\u201cI used to have to pull inventory numbers from three places everyday and move all the disparate data into a spreadsheet. ShipBob has an analytics tab in their dashboard with all of this information, which is great for end-of-month reconciliations. It\u2019s really nice to not have to operate three 3PLs. <\/span><\/em><\/p>\n\n\n\n

ShipBob lets you manage your inventory while providing important data in a very digestible way. Between inventory forecasting tools and the ability to auto-create WROs, we don\u2019t have stockouts much anymore. I sleep better at night.\u201d<\/span><\/em><\/p>\n\n\n\n

Wes Brown, Head of Operations at Black Claw LLC<\/a><\/span><\/p>\n<\/blockquote>\n\n\n\n

4. Poor inventory visibility<\/h3>\n\n\n\n

If you don\u2019t know what and how many units of each SKU you have on hand and where, it will be hard to make data-backed decisions that can improve your bottom line.  <\/span><\/p>\n\n\n\n

Inventory visibility<\/span><\/a> is, therefore, a non-negotiable aspect of<\/span>supply chain management<\/span><\/a>.<\/span><\/p>\n\n\n\n

Digital supply chain management systems that track and record inventory in real time increase overall efficiency,<\/span>maintain optimal inventory levels<\/span><\/a>, improve forecasting, and reduce supply chain costs.<\/span><\/p>\n\n\n\n

\n

\u201cNow we\u2019re at two ShipBob fulfilment centres, and being able to have the analytics and see how everything is working together has been extremely helpful for me on the operations end. <\/span><\/em><\/p>\n\n\n\n

It definitely helps me with inventory management and seeing what\u2019s going on. Even though we\u2019ve grown, I haven\u2019t spent more time on the business from an operations standpoint.\u201d<\/span><\/em><\/p>\n\n\n\n

Dana Varrone, Director of Operations at Organic Olivia <\/span><\/p>\n<\/blockquote>\n\n\n\n

How ShipBob\u2019s tech-enabled 3PLs help you create a consistent customer experience<\/h2>\n\n\n\n

ShipBob is a technology-first 3PL with an<\/span>international fulfilment<\/span><\/a> network. ShipBob helps fast-growing direct-to-consumer brands<\/a> stay competitive and grow their business faster by providing the infrastructure, technology, and resources necessary to build a successful online brand. <\/span><\/p>\n\n\n\n

ShipBob\u2019s entire<\/span>logistics network<\/span><\/a> is powered by a proprietary tech stack, which allows merchants to track fulfilment activity and performance in real time all from one dashboard.<\/span><\/p>\n\n\n\n

To get a glimpse into our operations, check out ShipBob\u2019s 3D<\/span>fulfilment centre<\/span><\/a> tour: <\/span><\/p>\n\n\n\n

\n