Digitalizing the supply chain: how to convince your company to innovate

The challenge: overcoming barriers to digitalization

Companies relying on minimally digitalized logistics and supply chain processes face daily hurdles that limit efficiency and competitiveness. These include, for instance, time-consuming manual tasks, outdated or low-quality data that hinder informed decision-making, and communication breakdowns among teams and stakeholders, which delay operations.
Recent studies on digital transformation across European businesses reveal a significant gap. According to the European Commission’s Digital Economy and Society Index (DESI) 2023, while 73% of companies have begun their digitalization efforts, 60% still lack a long-term strategic vision for evolving their operational models. This lack of a cohesive strategy is hindering broader progress in many sectors, including logistics and supply chain management.

What’s causing this gap?

While digitalization offers obvious benefits – greater flexibility, efficiency, and responsiveness in a constantly evolving market – many managers face significant barriers to digital transition and adoption of innovative solutions.
Even in well-structured organizations, resistances like for instance the perceived complexity of new systems, concerns about costs or implementation times, a lack of strategic vision from leadership, or simply a habit for the old way of doing things, are not unfrequent.

Strategies to overcome resistance

Whether you are a new manager just joining the company and eager to make an impact, or a long-time employee seeking to introduce innovation, convincing internal decision-makers is often the key to bringing about change, but it can be a far from easy goal to achieve.

An abstract concept may not appeal to a very pragmatic CEO, the mere word “investment” may cause the finance director to nip any proposal in the bud fearing negative repercussions on budgets, and some colleagues may row against initiatives coming from other departments. However, with the right strategies, a simple idea can become a shared and supported innovation project.

Here are some tactics that every manager should know and adopt to gain the necessary consensus and persuade the company to embark on a digital transformation journey.

1. Build the business case

🟢🟢 Prove ROI with real numbers

Decision-makers trust numbers. Calculate the potential time and cost savings from adopting digital solutions to present tangible benefits from your project. For example, implementing an advanced slot scheduling system could reduce truck waiting times by up to 70%, significantly lowering operational costs. With solid figures, it is easier to convince those who have resistance related to implementation costs: this strategy is especially effective with CFOs or procurement directors, who want to see a clear return on investment.

🟢🟢 Highlight current inefficiencies and future advantages

Bring practical examples to the table: how many delays, errors, and inefficiencies occur each week? Show how much the company is currently losing and explain how the digital solution you propose could solve specific problems, such as reducing data duplication or improving collaboration between departments or reducing pressure on staff and improving morale. For example, automating some processes would allow teams to be freed from manual work and focus on more strategic activities, improving operational efficiency. Demonstrating that a more digitized supply chain can make the company faster, more flexible and more competitive is especially important with leaders focused on business growth

🟢🟢 Emphasize the risks of inaction

In today’s competitive market, failing to adopt digital technologies risks falling behind. Highlight potential negative consequences of maintaining the status quo, such as losing customers, increased costs from inefficiencies, or supply chain vulnerabilities. CEOs are especially likely to act when they see the risk of jeopardizing the company’s future.

2. Build alliances

🟢🟢 Engage a cross-functional team

Battles are rarely won alone: create a team with representatives from different departments, such as IT, logistics, manufacturing and procurement, to engage stakeholders and internal influencers from the outset. Having allies who can support you in the cause is especially helpful in dealing with resistance to change. Show operational teams how their expertise will be valued and how technology will support them, rather than replace them, to create widespread internal buy-in and build a coalition of support: if trusted C-level people share enthusiasm for the project, it will be easier to demonstrate the shared value of the proposed solution and gain approval.

🟢🟢 Step into their shoes

To convince, you must first understand. Listen to decision makers’ concerns, use empathy and, once you understand their goals, highlight how the solutions you propose can help them achieve them, demonstrating alignment with their priorities. For example, if the CEO’s focus is on international expansion, illustrate how a digitized supply chain can improve scalability.

🟢🟢 Leverage reciprocity

Offer value before asking for support. For instance, organize a free demo or present a report detailing how the company could benefit from the proposed technology. Giving value upfront builds trust and opens the door to collaboration.

3. Simplify the transition

🟢🟢 Show a feasible path

Break the project into manageable steps and communicate clearly that implementation will be gradual to reduce perceived complexity. Propose scalable solutions that lower initial costs and allow for adaptation to evolving business needs. Delivering quick, tangible results can also build momentum and confidence in the project.

🟢🟢 Present a detailed plan

Decision-makers value clarity and foresight. Show your competence and reliability with a concise plan outlining objectives, budgets, and timelines. Highlight how the transition will be seamless, ensuring no operational disruptions.

🟢🟢 Propose a pilot project

Reduce resistance by suggesting a small-scale trial phase. For example, test a digital dock management solution at one warehouse before rolling it out across all group’s facilities. This allows cautious decision-makers to see immediate results and feel confident about scaling up.

4. Build trust with pragmatism

🟢🟢 Share a success story

Some stakeholders respond better to stories than numbers. Collect case studies from similar companies that have successfully implemented digital solutions. For instance, a competitor may have boosted efficiency after automating freight order management. Case studies are a powerful tool for inspiring confidence and reducing uncertainty because they offer a concrete example to demonstrate the strategic value of the proposed solution.

🟢🟢 Highlight social proof

Reinforce the importance of staying competitive by showing how other companies are adopting similar technologies. Mention data on industry trends like, “60% of manufacturing companies have already begun digitizing their supply chains”. This creates positive social pressure to act.

🟢🟢 Use visual communication

Capture attention with visuals: present your proposal using charts, dashboards, and simulations. For instance, demonstrate how an integrated dashboard can provide real-time visibility into logistics performance. This approach is not only memorable but also effective in convincing visual learners.

5. Maximize all available levers

🟢🟢 Create urgency without pressure

Communicate the importance of acting now without appearing overly aggressive. For example: “Adopting this technology could resolve distribution challenges before the seasonal demand surge”. This motivates action without causing undue stress, perfect with leaders who best respond to market-related urgencies.

🟢🟢 Bring in an external expert

Leverage the credibility of a digital partner or vendor to address technical concerns and clarify uncertainties. Having an expert explain the solution can add weight to your proposal, especially when it involves areas beyond your expertise.

Digitalizing for resilient supply chains

Adopting new technologies isn’t just about ROI; it’s an opportunity to build more flexible, efficient, and strong businesses.
With a strategic approach and effective communication, you can transform initial resistance into enthusiasm, driving the digital transition your company needs to thrive. Just to mention a few examples among the benefits of digital solutions for supply chain management:

• Operational efficiency: automating transport order management improves load allocation speed, boosting capacity without increasing efforts.
• Cost savings: slot scheduling systems reduce truck wait times and optimize resource allocation, cutting demurrage fees and personnel costs.
• Enhanced collaboration: centralized communication and improved data transparency build stronger relationships with suppliers and customers.
• Faster, smarter decisions: advanced tools reduce errors and provide real-time data for proactive decision-making and smarter supply chain planning.

CargoON: your partner in logistics digitalization

CargoON provides advanced digital solutions to optimize logistics processes and enhance visibility and collaboration across the supply chain. From transport order management to performance analytics, CargoON supports shippers in achieving end-to-end digitalization for more resilient and efficient supply chains.

Discover how CargoON can transform your logistics operations.