By Published On: 13 May 2025

The Power of Digitisation in 21st-Century Supply Chain Management

 

Digitisation is transforming the supply chain industry. 

 

It cuts out manual processes, improves visibility, and enhances overall efficiency, making it a must-have for businesses to remain competitive. 

 

Supply chain management courses can help you understand the digital aspects of the industry. The skillME Supply Chain Management: Digital Transformation and Optimisation course will teach you about digitisation and how to apply it to your company’s supply chain. 

 

But first, let’s look at how supply chain management has evolved and the five ways digitisation is revolutionising present-day SCM. 

 

The evolution of supply chain management

Supply chain management (SCM) has significantly transformed as technology evolves and customer behaviour shifts. The industry looked completely different in the past compared to how it looks today. Let’s examine its transformation. 

 

Early Developments:

The concept of SCM, as we know it today, has humble beginnings. During these formative stages, supply chains were straightforward and tailored to local needs.

  • Pre-20th Century: In ancient times, supply chains revolved around simple trade and bartering systems. Farmers, artisans, and traders sold or exchanged goods in local markets. Logistics mainly consisted of moving goods within short distances and was restricted to regions. 
  • Early 20th Century: The Industrial Revolution began structured supply chains. As demand for goods increased, companies started to streamline logistics and deliver finished goods through railways and steamships. 

 

Mid to Late 20th Century:

The post-war period underwent innovation and globalisation, forever changing supply chain operations. 

  • 1960s-1970s: As manufacturing scaled, businesses focused on aligning their production with inventory needs. As a result, techniques like Materials Requirements Planning were introduced. These techniques allowed computers to calculate material needs and optimise production. 
  • 1980s: During this period, the supply chain expanded across borders. Just-In-Time (JIT) manufacturing, popularised by Toyota, emerged as a widely adopted strategy to minimise inventory and reduce waste. However, this new interconnectedness also exposed supply chains to risks, including shipping delays and currency fluctuations.

 

Late 20th Century to Early 21st Century:

The late 1990s brought many technological advancements that changed the supply chain as we knew it. 

  • 1990s: The rise of digital technology made it possible for businesses to track their goods in real-time. They could see insights such as where in the supply chain the goods were, optimise their transportation routes for faster delivery, and more. 
  • Early 2000s: Online shopping and global customer expectations further changed the supply chain. Companies began focusing on flexibility and responsiveness. Functions like inventory automation, digital payment systems, and visibility-enhancing technology emerged. 

 

Recent Trends:

In the modern age, SCM is defined by agility, sustainability, and a robust approach to mitigating vulnerabilities.

  • Resilience and risk management: Global disruptions, such as the COVID-19 pandemic, exposed the fragility of traditional supply chains.
  • Sustainability: Many organisations are incorporating renewable energy sources, reducing waste, and shifting toward circular supply chains—where products are reused, remanufactured, or recycled. Sustainability is no longer optional; it’s an expectation in modern commerce.
  • Technological integration: Artificial intelligence and advanced analytics are utilised to predict disruptions, optimise routes, and enhance decision-making processes.

 

5 Ways digitisation is revolutionising present-day supply chain management

The supply chain is the backbone of global commerce, and digitisation makes everything more straightforward by cutting out manual processes, improving visibility, and more. Here are some of the main ways technology is changing the supply chain industry.  

 

1. Enhanced efficiency and automation

Certain technologies are significantly reducing human intervention in supply chain processes. Some of the most popular types of automation are powered by: 

 

As a result, businesses can operate faster, reduce costs, and manufacture more accurate goods. The Internet of Things (IoT) further optimises logistics by monitoring real-time conditions and reducing errors. 

 

2. Improved visibility and transparency

Real-time tracking and blockchain technology help improve supply chain visibility. With it, companies can track: 

  • Shipments
  • Inventory levels
  • Supplier performance in real-time

 

This helps reduce the risk of lost or delayed goods. Since blockchain provides secure and tamper-proof records and data, this also makes it easier for parties to trust one another. 

 

3. Agility and responsiveness

With unpredictable market demands, businesses must be agile and respond to changes to remain competitive. 

 

Cloud-based SCM software helps companies quickly adapt to disruptions, such as delays and demand spikes. AI-driven insights can also help these businesses make quick decisions, ensuring rapid response and minimising operational hiccups. 

 

4. Cost reduction

Digitisation helps cut costs across the supply chain. Businesses can optimise inventory management and reduce waste, as they won’t risk overstocking. Route-optimisation software can also help companies save on fuel consumption.

 

Additionally, managers can use data-driven insights to make better decisions. For example, they can determine customer demands and market shifts early, meaning they won’t waste resources on outdated products. 

 

5. Sustainability

Green supply chains are becoming a priority, and digital tools play a massive role in sustainability efforts. 

 

AI-driven analytics can help companies reduce waste, optimise their packaging, and select more eco-friendly transportation routes. Plus, IoT sensors monitor carbon emissions and ensure compliance with environmental regulations. 

 

How a supply chain management course puts you at the leading edge

As businesses face increasing challenges in global trade and technological complexity, the role of supply chain professionals has never been more crucial. 

 

Enrolling in an SCM course does more than teach logistics—it equips you with actionable skills to stand out in a constantly evolving industry. 

 

This is even truer if you enrol in an SCM course on digitisation, such as skillME’s Supply Chain Management: Digital Transformation and Optimisation. 

 

This course covers more than just SCM. It also helps you understand digital transformation and its application to a company’s supply chain strategy. 

 

Register for a skillME Supply Chain Management programme

Technology will continue to advance, which is why businesses must stay on top of digital advancements in the supply chain. 

 

Enrolling in the SCM: Digital Transformation and Optimisation course will teach you about supply chain digitisation and how to apply it to your company.