August 15, 2023 Why Supply Chain Digitization Is A Must

Discover how microservices unlock speed, flexibility, and insights so you can embrace digital transformations in supply chain management.

In today’s rapidly evolving business environment, digital transformation in supply chain management has become even more crucial. Globalization and technological advancements have ushered in an era of increased competition, demanding businesses possess the agility and robust infrastructure to navigate swiftly changing environments. From customer expectations of faster, more transparent deliveries to unpredictable geopolitical developments impacting global trade, the traditional supply chain models are being rewritten.

The most significant disruption to supply chains in recent memory has been the COVID-19 pandemic. This health crisis highlighted the vulnerabilities of many supply chains, from heavy reliance on single-source suppliers to the inability to adapt to significant shifts in consumer demands. These disruptions underscored the dire need for businesses to accelerate their supply chain digitization, driving the quest for innovative digital solutions that provide much-needed resilience, transparency, and flexibility.

The Potential of Microservice Architecture in Platform Engineering

In an era of increasing supply chain complexity, the power of microservices within platform engineering cannot be overstated. Contrary to traditional monolithic systems, a microservice architecture is designed to be modular, enabling the swift and efficient integration of various supply chain components. Data- and event-driven microservice architectures (loosely coupled) provide the simplicity and modularity to ensure a streamlined, uncluttered setup.

Data-driven microservices eliminate one-directional constraints, facilitating rapid and seamless information flow. Messages enter a message bus and are picked up elsewhere, thus creating a dynamic and efficient communication system. This ability to unlock insights rapidly and dynamically is critical in an environment where speed is of the essence.

One of the primary concerns in today’s supply chain landscape is the lack of visibility. A staggering 71% of respondents from a recent survey admitted having limited or no visibility into their supply chain networks, with only 13% having their network fully mapped. This uncertainty hampers swift and informed decision-making, a crucial requirement in the face of disruptors like the pandemic or shifting geopolitical scenarios. Microservices is a loosely coupled data-driven architecture that offers an elegant solution to these issues.

Rethinking Traditional Systems

Suppose a business relies on multiple shipping services — UPS, FedEx, and USPS. A traditional system would struggle to swiftly switch between these options in response to external events like a UPS strike. With a microservice-based approach, each shipping solution has its dedicated service receiving data. Depending on preference, the system can instantly flip the value of a configurable data element from one shipper to another, thus ensuring uninterrupted operations even amidst unforeseen circumstances.

Microservice architecture offers supply chain management a level of agility that is paramount in today’s disruptive landscape. Businesses can avoid vendor lock-in and retain control of their production data, ensuring they are not at the mercy of external service providers.

Platform Engineering: A Proactive Approach to Supply Chain Management

With these insights in mind, it is clear that investing in platform engineering and microservices should be a priority for any supply chain manager or IT buyer today. Here are four compelling reasons why:

1. Enhanced Visibility and Insight

A well-structured platform engineering framework can provide unprecedented visibility and insight into your supply chain. This visibility allows for better decision-making and problem-solving from a business perspective. However, possessing the right tools is just the beginning; knowing how to apply this framework and leverage it effectively are equally vital.

2. Adaptability to Change

The rapid pace of change in supply chain management today necessitates an equally agile IT infrastructure. With platform engineering tools, businesses can keep up with this pace, adapt to changes quickly, and bring new features into production faster (and maintain the solution once it is deployed). This approach also offers portability that enhances the overall system flexibility.

3. Cost Efficiency

Early adoption of platform engineering can save substantial operational costs down the line. The analogy of catching a flaw in the manufacturing process versus when it is on the store shelf perfectly illustrates this point; an issue that could be fixed for a dollar at the manufacturing stage could cost a hundred dollars once the product reaches the store shelf. Thus, a sound platform engineering framework combined with a competent team can significantly save costs.

4. Future-Proofing Your Supply Chain

As supply chain processes evolve rapidly, businesses must stay ahead of the curve. Platform engineering allows them to do so by offering flexibility, scalability, and the capacity to accommodate future innovations. This investment today is a crucial step toward tomorrow’s resilient, adaptable, and efficient supply chain management system.

Through the use of platform engineering and microservices, businesses no longer need to be held captive by their supply chains. Instead, they become active participants, equipped with the tools and insights needed to navigate the turbulent waters of the supply chain landscape. By offering unparalleled visibility, adaptability, and resilience, these technologies allow businesses to future-proof their operations. Investing in supply chain modernization is about keeping pace with current market trends and paving the way for long-term, sustainable growth. 

Curtis Thompson, MBA, Senior Client Partner, CTG
CTG Senior Client Partner Curtis Thompson, MBA, is a highly respected professional known for his exceptional talent in connecting business leaders with technology teams, resulting in an impressive portfolio of award-winning solutions across the global energy, financial services, and manufacturing sectors. Working alongside his father, Curtis has multiple patents related to an innovative camera system, which reflects his unwavering determination in turning ideas into reality. With a deep understanding of both business and technology, he excels in simplifying complex ideas, fostering collaboration, and driving organizations to achieve remarkable outcomes. Curtis’s visionary approach and track record of success establish him as a trailblazer, shaping a future where innovation and business expertise unite for unparalleled success in enterprises worldwide.

Ben Park, Ph.D., Director, Software Development, CTG
Ben Park, Ph.D., is a software engineering and development leader with more than 30 years’ experience developing and deploying custom-built software solutions. As CTG’s Director of Software Development, he leads a team of software development professionals that build flexible solutions to meet the needs of enterprise clients across industries. Dr. Park is a proven, motivated, and enthusiastic leader that understands how to apply a strategic vision to practice, seeks and forms collaborative teams, and transforms groups into teams aligned to a common vision. Dr. Park is an award-winning technical leader with the knowledge to design large systems of systems as well as small, embedded devices. With a Ph.D. focus in globally distributed teams using agile software development, he has a clear understanding of what is needed to operate in multiple time zones, locations, and cultures.

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