Going Digital: The Shift Towards Electronic Supply Chain Management

Any company moving products or raw materials from A to B cannot function efficiently without supply chain management (SCM), which handles the uninterrupted flow of goods from the supplier to the end user.
In many cases, up until recently, internal supply practices have been necessitous, often poorly executed and dependent on singular systems. The evolution of technology has, however, brought a new dimension: Electronic Supply Chain Management or electronic SCM.
In this blog, we address the shift from traditional supply chain management practices to an electronic counterpart, the reasons for the shift, the challenges faced, and electronic supply chain management in South Africa.
We conclude with how acquiring qualifications, such as those offered by the IMM Graduate School, can make you relevant in this and every other changing business environment.

What is Electronic Supply Chain Management (Electronic SCM)?
Electronic SCM is supply chain management that encompasses the use of technology within the supply chain itself. Electronic SCM applies cloud, AI integration, and blockchain technology in nearly all aspects of the supply chain from sourcing to storing and finally to delivering products to the customers.
The electronic SCM system can be subdivided into the following parts:
- EDI: Electronic Data Interchange allowing instantaneous information flow to and from all the partners in the chain.
- Mechanisation: The replacing of human efforts in the supply chain with machines.
- Geolocation: The use of sensors and other internet of things (IOT) related items to keep track of containers or stocks while on the move.
Tech innovations such as AI integration, blockchain technology and external cloud systems empower businesses to make better choices, cut expenses and increase clarity within all levels of the supply chain operations.
Challenges in Adopting Electronic SCM
While the benefits of electronic SCM are clear, its adoption does not come easy. Here are some of the challenges to expect:
- High Initial Investment Costs: Implementing new technologies requires substantial upfront capital.
- Data Security Risks: Protecting sensitive supply chain data from breaches is critical.
- Training Gaps: Teams need upskilling to effectively use advanced digital systems.
- Integration Issues: Aligning electronic SCM with existing infrastructure can be complex and time-consuming.

Future of Electronic SCM
The South African approach toward its SCM industry present many opportunities for those wishing to enter this field.
There are several emerging trends that will radically alter this industry, for which skilled, qualified Supply Chain Managers are essential:
- Predictive analytics — The use of data will allow for the easy prediction of potential disruptions and their management beforehand.
- Since most routine functions will be performed by robotic process automation, there will be an expansion in the use of robots for physical goods/strategic tasks completion, freeing up human resources for higher functions.
- Electronic SCM will foster these practices by eliminating wastage, optimising energy consumption and focusing on sustainability.
- 5G Integration – Enhanced and hyper speeds with stable communication enhanced logistics and tracking systems are being and will continue to be introduced and embedded into supply chains to ensure ongoing innovation and improvement.
Introducing the IMM Graduate School
To cope with the demand for professionals in the field of supply chain management, the IMM Graduate School presents the BCom Honours in Supply Chain Management.
This level 8 NQF institution provides:
- Comprehension of different integrated supply chain processes.
- Instruction on how to maintain the relationships between suppliers, manufacturers and customers.
- Examples and solutions on internal and external logistics to and from a customer worldwide.
Learn more about our Supply Chain Management qualifications here.

Conclusion
In the current era of globalisation, a transition towards electronic SCM is an important milestone. Businesses that incorporate these with digital transformation will enjoy greater efficiency, transparency, and flexibility.
As you consider the prospects of a career in supply chain management, consider studying at the IMM Graduate School and reap the benefits associated with acquiring skills that are relevant in the present age of technology.