Traditional Supply Chain vs Integrated Digital Supply Chain: What is Best for Your Business

Published April 14, 2021

Big data and analytics have transformed many aspects of the supply chain. Though often overlooked, the importance of an integrated digital supply chain in the MRO space is huge. This article defines the digital integration opportunities in the MRO supply chain, including efficiencies, insights, and savings.

What is an Integrated MRO Digital Supply Chain?

One of the key goals of an integrated MRO digital supply chain is to seamlessly integrate large volumes of data in real time across multiple touch points. This means users don’t need to switch between multiple systems and are able to perform their work in a smooth manner irrespective of data transfer between systems.

Process of a Digital Supply Chain

A simple example of how this works: a request for parts is electronically sent directly from an ERP or CMMS system to the integrated supply vendor, who then sources the requested material in their system and provides a price quote back electronically. Upon approval of the quote, the user generates a purchase order in their ERP systems and transmits it to the vendor electronically, who then proceeds with shipping the materials ordered. Purchasing, inventory, accounting systems are all automatically synced for maximum visibility and efficiency.

The Major Benefits of an Integrated MRO Digital Supply Chain

While integrating these systems is an upfront investment of time and resources, the benefits are huge. Examples include:

Labor Cost Reduction

By automating entries and eliminating redundant work, a configured MRO system integration can achieve 20% cost reduction in labor.

Efficiency

With this integrated system, you can increase the number of POs you’re able to process by 4x with the same resources.

Accuracy

Automatic data transfer between systems will also help eliminate errors that are caused by manual data entry.

Visibility

Improved visibility into stock levels and lead times and enhanced reporting.

Inventory Optimization

Optimized inventory carrying costs; min/max recommendations based on usage.

The Future of Your Business with Integrated Digital Supply Chain

As the data revolution continues, the benefits of a digital supply chain are becoming industry standard. Therefore, it is crucial for your business to adapt to keep up with competitors. To learn more about how Synovos’s MRO technology platform can activate the digital supply chain for your business, see here