Series 16 – Episode 5 – Digital transformation: navigating the transition from manual to automated

Reflecting on the industry's past, Ratelet illustrated how much has changed in terms of technology: "When I started as an R&D engineer, I remember sitting next to the purchaser who was sending faxes to place orders. We've come a long way since then." The evolution from faxes to emails, and eventually to online orders, has been significant. However, Ratelet noted that these earlier steps only digitalised existing manual processes without fundamentally changing the nature of those interactions. "It was essentially the same experience, just delivered in a different format," he explained.

Today, the landscape is drastically different, with customers seeking seamless digital connectivity. This shift is driven by the increasing complexity of supply chains and the pressure on businesses to deliver products quickly and cost-effectively. Ratelet emphasised: "Customers are looking for ways to digitise their internal processes and their interactions with suppliers, distributors, and customers." The current inflection point marks a transition from manual interventions to automated digital solutions, significantly reducing human involvement in transactional activities.

Ratelet explained that in the journey toward digitalisation, companies often start by focusing on pricing and availability requests or quoting activities. "Customers spend a considerable amount of time checking for the best prices," he said, adding that the manual workload involved is often intense and does not always yield satisfactory results.

Following this, companies usually shift their focus to automating supply chain transactions, such as order processing, support, and invoicing. Digital tools like APIs and SaaS solutions can streamline these processes by providing real-time updates, thus increasing efficiency and reducing manual intervention. Ratelet pointed out: "When you have the ability to access real-time data, it not only improves speed and accuracy but also allows businesses to focus on more value-added tasks."

One of the main benefits of digital transformation in quoting activities is the ability to provide real-time pricing and availability information. "With digital solutions, customers no longer have to wait for someone to get back to them," Ratelet said. This capability enables quicker decision-making and helps businesses respond to market demands more effectively. Additionally, it reduces the time-consuming task of manually checking multiple sources for the best pricing and terms.

The benefits extend to supply chain management, particularly in terms of visibility and responsiveness. Ratelet highlighted that the past few years have demonstrated the importance of supply chain resilience, with events like natural disasters and geopolitical tensions causing disruptions. "Visibility is key," he remarked. "It allows businesses to purchase at the right time, avoiding cash flow exposure or stock shortages."

Ratelet advised companies to begin their digital transformation journey by identifying pain points in their current processes and considering what those processes should look like in the future. "It's essential to think long-term rather than just improving what's in place," he recommended. Companies should assess whether they have the internal capabilities to develop digital solutions or if it would be more efficient to work with third-party providers. "In most cases, it's more practical to opt for turnkey solutions or hire external developers," he noted.

To hear more about digital transformation and much more, you can listen to Electronic Specifier’s interview with Stéphane Ratelet on Spotify or Apple podcasts.