THE DIGITAL SUPPLY CHAIN
information . It ’ s almost a cliché to say that the pace of change is accelerating , but it ’ s true . Digital allows supply chains to keep up and often drive that speed .”
Historically , the biggest problem with supply chains was one of visibility – you can ’ t fix what you can ’ t see – but that need no longer be the case , with digital allowing managers to understand inventory flow in real time and act immediately to alleviate
any obstacles . “ Timely information is presented to people who need it so they can make real-time decisions . When they do that , they increase the velocity of a supply chain ,” says Linton .
“ Faster inventory turnaround means more , free cashflow . The velocity of a supply chain is directly linked to the health of the balance sheet of a company , so a faster supply chain is a better supply chain .”
Flex ’ s CEO Mike McNamara has challenged its staff to remove five days a year from its supply chain . As a public company , it reports days of inventory or days of supply , which is a balance sheet measurement showing the cashflow of a company . “ When you move goods you free cashflow , and you get your money back from your customers when you sell it . This is a simple concept and it ’ s got a very significant ROI because of the cash benefit ,” says Linton . That is not the only improvement – a faster supply chain will also bolster operating margins and increase customer satisfaction .
“ Customers like to receive things faster , and you can produce more revenue over the same period of time ,” Linton claims . “ The combination of visibility and velocity of the supply
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