Many companies struggle to adapt to market changes and, in the process, lose opportunities to become more competitive. 

Time has definitely shown that those who fail to adapt to innovations occurring in their sector will face repercussions for their business.

The supply chain is no exception. Digital innovation has burst onto the scene in this industry to streamline processes. Last January, José Ruiz, operations and supply chain partner at KPMG Mexico, spoke about this topic with members of the Trade Facilitation Committee of the American Chamber of Commerce of the Dominican Republic (AMCHAMDR).

During his presentation, "Digital Disruption in the Supply Chain and Logistics," Ruiz argued that for organizations to be competitive and face the challenges facing the business world, they must follow four principles: knowledge of the market in which they operate, visibility, integration of processes in the value chain, and flexibility and agility to make the changes demanded by the market.

He emphasized that companies must fall in love with the problem and focus on solving it, integrating technology, which has proven to be a great lever for the supply chain.

In his view, the new wave of changes in the supply chain and Industry 4.0 is linked to connectivity.

"In the supply chain of the future, systems will operate through interoperable ecosystems that combine technology to facilitate production (such as biometric technology, sensors, autonomous vehicles, local 3D production to eliminate storage costs, etc.)," the specialist predicted.

Furthermore, Ruiz suggested that, in the future, algorithms will orchestrate supply chain services.

In the expert's opinion, combining technology with data can maximize production and improve processes. However, he points out that there must be an economic return that justifies the investment so that obsolete technologies are not acquired.

"The challenge isn't having the technology (such as augmented reality, iCloud, and others), but how it's applied within the organization to solve problems. We also need to determine whether these technologies are geared toward collaboration, integration, and data analysis to make processes more efficient.

Ruiz understands that it is vital for companies to integrate improvements into their operations to become more efficient, agile, and flexible. He also proposes eliminating interruptions in the operational chain, improving control and service quality, and generating savings.

"The key to this process is being aware that change is happening and addressing it in the best way possible to evolve and innovate," he said.

Among the recommendations made by Ruiz are:

Start with performance, not data or technology Optimize performance, not maximize in isolation Start even if the data isn't perfect Focus on ROI: The smart sequencing of your roadmap The winners will be those with the best ecosystem.