Mid-market supply chain companies around the world lack the resources required to thrive and adapt in today’s fast-paced digital world. Despite this, 97% of supply chain professionals recognise the urgent need to modernise their IT infrastructure. They acknowledge that the current systems are inadequate for meeting the needs of modern supply chains. Many companies still rely on legacy technology, some of which is over 20 years old. As a result, integration issues are profoundly prominent for both suppliers and customers. This needs to change.
We live in an era where disruptions like port strikes or labour shortages are becoming increasingly pervasive. Reliance on manual systems is no longer sufficient for supply chain management and business continuity.
Consequently, transformative solutions including enterprise resource planning (ERP) modernisation, shopfloor automation, and warehouse automation solutions have been in greater demand.
Embracing these advancements has become a necessity for mid-market companies that wish to remain resilient and competitive amid evolving challenges within the industry.
The creation of disparate systems
Without the bespoke advancements that modern technology brings, current legacy methods are creating disparate systems brought on by tools reliant on manual processes. These challenges include the following:
Operational inefficiencies
Legacy ERP and customer relationship management (CRM) tools require manually inputting, storing and extracting data in systems like Excel spreads, increasing the risk of human error. Additionally, this dependency demands significant time and effort to maintain and keep track of such data.
Maintenance costs
Legacy systems are expensive to maintain, making them cost burdens to mid-market companies. Additionally, due to a lack of resources available, legacy systems are often difficult to repair.
Security risks
In order for supply chains to run smoothly, regular software updates are integral. With this in mind, mid-market companies that use legacy systems are much more vulnerable to cyber attacks, data breaches and other security threats because the systems are unable to support new updates.
Scalability issues
With the growth of complex, modern digital operations, legacy systems often struggle to adapt to new technologies, meaning mid-market companies are more likely to fall behind competitors due to incompatibility and inflexibility issues which lead to missed opportunities.
Limited visibility
Real-time visibility is a key driver in ensuring smooth operations within logistics and warehouse management. Unlike modern technology, legacy technology is unable to provide visibility on operations, meaning issues like delays and inventor discrepancies are likely to occur.
Building resilient supply chains
Mid-market supply chain companies that still run core processes on siloed, legacy systems lack the clear, structured foundation that is essential for effective digitisation.
Ultimately, building smart, resilient supply chains requires a shift to intelligent workflows, powered by artificial intelligence (AI) and machine learning (ML). These solutions have the potential to predict demand and supply needs while also being able to automate workflow efficiency.
Modern advanced solutions: seamless collaboration
The first step in moving from a fragmented, transactional set of systems to proven, modern advanced solutions is through the seamless integration of automation technologies directly into core systems like ERP.
These tools revolutionise operations by improving collaboration across the supply chain, ensuring a unified way of working, and alleviating any supply chain issues by strategically upgrading or replacing legacy systems. Other benefits include the following:
- Enhanced handling: Intelligent solutions empower warehouse management teams to efficiently handle all inbound logistics. This includes the inward of materials from external suppliers, internal transfers or customer returns and the handling of units.
- Scalable cloud infrastructure: Cloud platforms are preferred for ambitious mid-market organisations because they are a highly scalable and modular approach that supports growth. Instead of engaging in complex capability expansion projects, cloud-based solutions allow businesses to adjust capacity based on their needs.
- Optimised production: A manufacturing execution system (MES) supports efficient, more transparent production management, enabling swift resolution of quality and productivity issues quickly while reducing warranty and liability risk.
AI: driving operational efficiency
Additionally, the implementation of AI-driven technologies such as automated bots and operational assisting mechanisms can transform supply chain management. Adopting such technology comes with a number of benefits. These range from reduced errors, improved scalability and enhanced operational speed due to a reduction in manual intervention. These tools can help streamline workflows and reduce manual intervention. And doing so helps mid-market companies improve productivity without the requirement of huge upfront costs. Overall, this makes the transition from legacy systems to modern technology and intelligent workflows not only impactful but also cost-effective.
With this approach, mid-market companies can modernise their systems, ensuring AI capabilities are bundled directly into core ERP and CRM packages, allowing them to face evolving challenges head-on.
- Collaboration & Optimization
- Risk & Resilience