Technological advancements are taking place in the supply chain all the time. In light of the transformative nature of the past year, staying abreast of those advancements is more important than its ever been. A technologically modern supply chain is what stands between a company running smoothly regardless of external pressures and it being crippled by every disruption it faces.

This article by Morai Logistics covers 5 of the most significant indicators that reveal that a supply chain needs updating in terms of its technology.

Transportation Costs are too High

One of the main issues supply chains face when they’re suffering from a lack modernization is high transportation costs. These high transportation costs, is turn, limit profits. The reason that they’re a mark of out of date technology is because now transportation management softwares exist. With them, companies are able to greatly improve the efficiency of their transportation processes, reducing costs.

As a post from BluJay Solutions explains,

You already know that transportation takes up a big chunk of doing business. Cutting and controlling these costs is a key to surviving and thriving. A modern transportation management system, such as BluJay’s Transportation Management, leverages data to help make better decisions in the moment and works over time to pinpoint opportunities for long-term savings.

Struggling with Visibility

The modern supply chain has visibility throughout its operations. With fully integrated supply chains, smart sensors, data being collected continuously for real-time insights, and so much more, companies now have the ability to always have a view of all stages of their supply chain. Moreover, this means they’re able to give their customers precise updates about their deliveries. Thus, if companies find themselves having trouble meeting their customers’ expectations as a result of not being able to provide them regular shipment information, it’s a strong suggestion that they’re lagging behind.

Having Difficulty Taking Advantage of Opportunities

Often, as the market changes, new opportunities arise. However, to sufficiently take advantage of them, quick and flexible responsivity is required in the supply chain. If a company finds itself repeatedly having trouble pulling the trigger in time, it needs overhauling. Similarly, if it doesn’t have the infrastructure to pivot to even attempt to address the opportunity, it needs a revamp. What these failings point to is a supply chain that lacks agility. Agility that comes hand in hand with technological proficiency.

Difficulty Dealing with Pre-existing Technology and Data

The integration and consolidation of data is critical to the smooth function of an up to date supply chain. It is crippling to a supply chain to be run with old digital tools that can’t interact with each other. They lead to information silos and are difficult to utilize competently. What’s more, even if the tools are used, they are limited in their scope and applicability.

An article by Supply Chain 24/7 lays out this regrettable scenario,

Only two people in the world understand your system, and they’re both about to retire. Hopefully you aren’t still relying on legacy, custom-configured technology, because if you are, odds are the people that built it will be retiring soon. Take a proactive approach to sunsetting the technology before the people who understand it aren’t around to maintain it, and you’re left with a system that could become a black box with your data locked inside.

Inventory Management Shortcomings

Very much like transportation costs, high inventory costs are also a strong sign that a supply chain needs upgrading. By having the earlier mentioned technologically augmented visibility to keep track of incoming shipments, companies can stay well stocked. On the other hand, without visibility, inventory management becomes an imprecise and costly operation.

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Supply chain technology comes in many forms. Last week’s article covered four of the most prominent technology trends this year as outlined by Gartner. It showed just how diverse and varied the technological landscape is for supply chains. As more and more is asked of them—these demands having only been exacerbated by the onset of the COVID-19 crisis—the more sophisticated they have to be. As such, previously overlooked components of supply chains success, such as virtual reality, are now coming to the fore.

An article from earlier this year by Supply Chain 24/7 highlights the multifaceted demands placed upon supply chains in 2020,

The supply chain technology trends for 2020 reflect the growing demands for more service, more value, faster shipping, cheaper shipping, and an unrelenting pace to predict what’s going to happen next.

This article by Morai Logistics covers four more technology trends outlined by Gartner, what they are, and why they’re important.

Edge Computing and Analytics

Some technological trends mark a paradigm shift. That is very much the case with edge computing. Edge computing is a form of computing where the data that is processed is close to where the data comes from. Essentially, it comes down to proximity. Companies are currently operating in the era of the cloud. Where the data that is computed is data coming from one of only a handful of major cloud providers.

Edge computing changes that, allowing the data to travel a much shorter distance. Consequently, a whole host of benefits correspond with this change. These include greater data processing speed, higher online security, cost cutting, and more.

Artificial Intelligence (AI)

Artificial intelligence. The technology that has seemingly been a trend for many years and will continue to be for many years to come. AI and its many subsets (such as machine learning) offer a wide spectrum of possibilities for companies. An example of one of its many uses is that it empowers companies to more easily decipher the vast amount of data they gather.

With the primacy of big data in the supply chain, it’s easy to see how just this single use is so important. The same is true for many others. As such, many of these technologies have already become an integral part of supply chains. Yet, their many applications and progressive iterations means they’ll remain significant for a long time still.

5G Networks

The long-hyped 5G technology is closer to a reality than ever. 5G marks the next step in internet speed, significantly improving upon the data speed currently experienced. Thus, it has obvious advantages for the supply chain. Some of these advantages being reduced latency and greater real-time visibility. However, it’s worth noting that 5G implementation is still a little ways away and has only been further delayed by the pandemic. Hence, whether it remains a viable technology trend this year is in question.

Immersive Experience

Supply chain professionals are always looking for new ways to improve upon their supply chains. Immersive experience technology presents such an opportunity. It’s a broad term under which augmented, virtual, and mixed reality fall. In short, it refers to any technology that attempts to present the physical world digitally. This type of technology can go a long way for workers within the supply chain. This is because it allows them to learn or train their onsite skills in the safety of a virtual world.

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Gartner recently identified 8 technology trends for supply chains in 2020. Given the pandemic currently taking place and what an impact its having on supply chains, it’s more important than ever for companies to stay abreast of the latest and greatest in tech. However, it’s not enough for new technologies to simply be promising or have considerable potential to elevate supply chains. For a technology trend to be worth paying attention to the technology has to be in a place to make an impact now.

The Gartner article in question said as much when addressing its findings,

Gartner analysts have selected strategic supply chain technology trends that have a high potential for positive impact on people, performance and industries. Some are now reaching critical tipping points in capability and maturity.

This article by Morai Logistics covers four of the eight technology trends outlined by Gartner, what they are and why they’re important.

Hyperautomation

Automation has long been an undeniable force in the world of supply chains. Yet, there’ve been understandable concerns with its wholesale adoption. One such concern lies in the displacement of human workers. Another is the discarding of older legacy systems, leading to a lack of continuity between the new and the old. Hyperautomation is a way to bridge that gap and address those concerns.

It’s the process of connecting older technologies with the new. Think of older legacy platforms versus technologies like artificial intelligence and machine learning. Hyperautomation is an approach to getting the best of both worlds, resulting in a truly integrated system that is minimally disruptive. Moreover, it allows for the preservation of a human workforce as they can be augmented by newer technology rather than replaced by it.

Digital Supply Chain Twin

As supply chains get larger and more complex, it’s as critical as it’s ever been to keep track of them. A huge part of getting greater oversight of a supply chain is through digitizing it. That way, it can be followed in real-time and a have a trail of data running through it.

With that said, there’s a way to go even further. That next step is being able to visualize the supply chain from end to end. That’s what digital twin brings to the table. It is a digital replication of the physical supply chain. Consequently, it marks the next step for intelligent decision-making.

Continuous Intelligence

Being able to access quality information in real-time within a supply chain means faster decision-making. Not only that, but decision-making that doesn’t suffer the usual pitfalls that come with speed. In the fast paced world of supply chain, where response time is the difference between a satisfied customer and an angry one, that is crucial.

This is what continuous intelligence is able to do. It enables supply chain leaders to see data that has already been processed in as close to real-time as possible. As such, supply chain leaders can utilize it for responsivity that was hitherto impossible.

Supply Chain Governance and Security

Finally, there’s supply chain governance and security. Unlike some of the previous trends mentioned, this doesn’t refer to a specific technology. Instead, it’s a general trend that has found solutions in technology. It’s a response to the growing concerns around cybersecurity and privacy.

As Christian Titze, vice president analyst with the Gartner Supply Chain Practice explains in the Gartner article,

Gartner anticipates a wave of new solutions to emerge for supply chain security and governance, especially in the fields of privacy as well as cyber and data security … Think advanced track-and-trace solutions, smart packaging and next-gen RFID and NFC capabilities.

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Blockchain, despite the many concerns remaining around it, continues gaining traction in the world of supply chains. This interest is only being accelerated by the increased digitization of supply chains operations by businesses. As such, increasingly, companies are either entering the consideration phase or early adoption phase in regards to the technology. With that in mind, its critical that those companies that are still in the consideration phase or are about to enter it know the unique challenges that come with blockchain technology before they proceed.

As an article by Consensys explains,

The list of industry-leading enterprises building on the blockchain spans tech leaders (Microsoft), financial institutions (JP Morgan, Santander), and even national governments (Singapore, Dubai, Brazil). But as with any emerging technology, there are some particular and unique quirks and obstacles that all early adopters will face along the way for which even the savviest business leaders considering blockchain solutions should be prepared.

This article by Morai Logistics presents 4 questions that are integral to optimally integrating blockchain into your supply chain operations.

Why do Your Operations Require Blockchain?

When evaluating the need for something, you have to start from the ground up. Blockchain is no different. Why does your supply chain need it? How will it be elevated by it? You need to have a good understanding of the nature of the technology and have it align with the running of your supply chain and the goals you have for it.

A piece by Supply Chain Management Review underscores the nature of a blockchain project,

Blockchain is not an IT or R&D project; it is a fundamental business transformation tool which, if properly implemented, will significantly impact revenue and cost. Blockchain excels where information is shared across an enterprise, as well as with suppliers and customers.

Essentially, you have to assess blockchain and its key features. Upon doing so, you have to ask why your supply chain requires those features.

Do you have the Infrastructure for it?

Blockchain has certain requirements in order to be applicable. If your company doesn’t have the architecture in place for its supply chain to support the technology, then that’s another undertaking it’ll have to commit to alongside blockchain implementation. Key amongst these requirements is digital transformation. Without being digitized, the technology will have nothing to run on.

Are you Planning to Scale Your Operations?

One of the persistent concerns surrounding blockchain technology is its trouble scaling. With that said, you need to know if your company plans on expanding its supply chains operations. If so, implementing blockchain might hurt and slow down those efforts. However, there are a variety of blockchain platforms providers. So looking into which provider is best suited to supporting your plans to scale might somewhat mitigate this issue.

Are you Prepared for the Regulatory Hurdles?

Despite being a technology largely based around transparency, certain facets of blockchain can make it push up again government regulations. In fact, ironically, some of its key features that see it touted as transparent and secure, are features that can run afoul of the regulatory hoops companies have to jump through. Thus, one more consideration you have to take on board, is whether you’ll be compliant with the rules that are in place.

The previously mentioned Supply Chain Management Review article highlights this point,

While regulatory compliance is a frequently mentioned application, in reality, compliance and regulatory issues can present a challenge. As an example, immutable records are a part of blockchain, but this can be a problem when records need to be changed.

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The demands placed upon companies’ supply chains are greater than ever and they’re only growing. Supply chains are to be faster, cheaper, more flexible, more transparent, more green, and a whole lot more. As such, technology has had to keep abreast of these new requirements. In turn, the amount of new technology being tried out in supply chains is astounding and impossible to cover in its entirety. However, there are a number of technology trends worth keeping track of.

This article by Morai Logistics runs down 4 of the most noteworthy supply chain technology trends to watch out for in 2020.

5G

The advent of 5G received a lot of attention in 2019. However, it’s in 2020 where it’s set to finally start seeing wider adoption. Being the latest generation in wireless technology, 5G means companies will be able to access the internet at speeds several times faster than before. This will have an incredible impact on supply chains. They’ll be able to manage and transfer data at rates far greater than before. And, with data being central to supply chain success, this will go a long way.

This is something that Logistics View Points covered in further depth in a recent article,

5G will impact supply chain and logistics by allowing more data to be transferred more quickly in real-time, in turn making increased visibility throughout the supply chain possible. As more and more devices throughout the supply chain and manufacturing process become part of the “Internet of Things,” they will produce an incredibly rich data stream that will send signals in real-time to trigger a wide variety of events.

With that said, 5G remains in the nascent stages of having the infrastructure to support itself for widespread adoption. Thus, it remains to be seen whether it will take off for supply chains in 2020 or whether it’ll take more time.

Supply Chain Applications

Applications are already in the process of transforming the way in which supply chains are run. That is only set to continue this year. Two of the most important components of a healthy supply chain are visibility and real-time data. Critically, both of these factors are optimized through to use of supply chain apps. They allow everyone along the chain to know what is happening as it’s happening.

Machine Learning for Warehouse Management

The pressures placed upon warehouses are numerous and ever-growing. The e-commerce explosion taking place is changing the way they have to operate. As a consequence, they need to be able to anticipate and prepare for customer demand more precisely than ever before. This is why in 2020 there’s a big opportunity for companies to apply machine learning to their warehouses. Through machine learning, supply chain managers will be able to better predict and respond to demands.

Another Logistics View Point article explains,

Machine learning’s ability to adapt to changing conditions makes it especially well-aligned with the dynamic nature of today’s e-commerce warehouses. Manhattan Associates utilizes machine learning within its WMS to determine the amount of time required to complete a certain task in a given set of circumstances such as historic duration and item characteristics.

Integration Throughout Supply Chains

Due to the complex and multifaceted nature of supply chains, the data within them are susceptible to being silo’d. As data in the different sections of a chain might be collected via separate sources—different tools—the resulting data might become isolated. This, in turn, leads to supply chain managers getting an incomplete view of their operations. This is why 2020 should see further attention being brought to the importance of integrated platforms. Platforms where the totality of operational data can be consolidated, giving managers a unified view of their supply chain.

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2019’s over, but there’s plenty of technology to look back on over the course of the year to see what affects it had on supply chains.

The move by companies towards digitization grew more pronounced in 2019. As such, many of the technologies that digital transformation supports grew as well. Part 1 of this review covered several of them, including AI, automation, and IoT.

Christian Titze from Gartner explains,

As companies seek to exploit the benefits of greater levels of digitalization, new and innovative technologies, such as blockchain and artificial intelligence (AI)/machine learning, can potentially and significantly disrupt existing supply chain operating models

Nonetheless, there’s plenty more to cover. Supply chains looked to a number of other technologies to elevate the running of their operations last year.

This article by Morai Logistics underscores many of the most significant developments in supply chain technology in 2019.

Blockchain

Blockchain didn’t have a breakout year in terms of adoption by supply chains by any means. Rather, it was a yer of tentative interest. Blockchain remains a technology in need of maturing. As such, the limitations that plague it like difficulty in supporting scalability remain a problem for it. In spite of that, its many benefits still have companies watching it closely.

A Gartner article expounds on why blockchain grew in prominence in 2019, despite its limitations,

In theory, organizations should know all parties in their supply chain network (within the broader business ecosystem) and trust them — but this is far from today’s reality. Blockchain technologies, as an example, could be an answer to address this problem across three areas — counterfeiting, visibility/traceability and efficiency play.

Robots and Cobots

Robotics only saw an incremental increase or similar rates of adoption in supply chains in 2019. As highlighted in this Supply Chain Dive article,

About 32% of supply chain professionals say they are actively using robotics and automation … This number has gone relatively unchanged since 2016 when 35% of respondents said they were actively using robotics and automation, but anecdotal evidence and market value forecasts show warehouse robotics growing.

With that said, even though robots saw little change, cobots gained some attention. A trend that continued from previous years, as seen in the sharp increase in cobot production numbers. This was probably due to the fact that cobots, by virtue of being robots that collaborate rather than replace human workers, aren’t as disruptive to workplaces. Moreover, not quite as much is expected of them as they aren’t necessarily doing tasks in isolation.

Immersive Technology

Certainly, virtual, augmented and mixed reality are immersive technologies that have been around for quite some time. However, it was in 2019 where companies began to explore their use in their business operations. That includes their supply chains, where they can have considerable benefit in a number of areas, including manufacturing and logistics. One reason for this is because they can help with predictive maintenance, displaying all the relevant data on AR glasses.

Digital Twin

Digital twins are online visualization of an actual system, such as a supply chain. Thus they have proven to be fantastic at creating end-to-end visibility of supply chains. Which in turn enables supply chain managers to have a clear understanding of how their chain is functioning and quickly respond to any issues it might be plaguing it.

All Things Supply Chain’s post further covers why using digital twins gained the traction it did over the past year,

The computer-aided duplicate of things has evolved in many ways: Today, digital twins are not only used for real-time product monitoring, but also for opening up new business areas. Scenario testing and analysis can be used to assess future potential success. In manufacturing, for example, a digital twin can answer all the crucial questions: How much do I produce or am I able to produce? How much capacity do I have? Are my plans still realistic?

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The cloud is a technology that at times goes overlooked. It doesn’t quite generate the same attention as some other tech buzzwords like blockchain or AI. Yet, the cloud is the facilitator of supply chain innovation. It is the mechanism through which digital transformation becomes a reality. Without it to pull the many disparate pieces of technology together, companies suffer from knowledge gaps due to data silos.

As such, it’s not an understatement to say that the cloud has transformed the way in which supply chains function. It has served as a kind of master key, liberating companies to have the totality of their data in one place. In turn, allowing all that data to be consolidated, interactive, and be transparently understood.

This ebook covers many of the key features that come with adopting the cloud and how those features bring numerous advantages.

In What ways is the Cloud Changing Supply Chains and What Advantages are They Gaining as a Result?

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

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More than ever before the supply chain has become characterized by technology. Artificial intelligence, machine learning, automation, blockchain technology, and much more are all part of the technological advancements driving supply chains forward. 2019 saw all these innovations continue their ascent. And, while not all of these technologies have seen wide scale adoption just yet, it seems to be a matter of when rather than if.

An article by All Things Supply Chain further delves into this supply chain trend,

In the globalization era, the supply chain is more diverse than ever before. Every day new technical innovations offer the opportunity to reduce this complexity. Gartner vice president David Cearley describes this development as an “intelligent digital mesh” that “will be characterized by smart devices delivering increasingly insightful digital services everywhere”. These circumstances are transforming the supply chain from a technology-enabled procedure to a technology-centric one.

This article by Morai Logistics highlights some of the most prominent developments in supply chain technology in 2019.

Artificial Intelligence (AI)

Perhaps the most significant technology in the supply chain space, artificial intelligence had a big year in 2019. Being responsible for machine learning, several smart devices, and the driver of automation, AI is the linchpin to numerous critical innovations. What AI in 2019 showed is that it is entirely capable of taking on numerous human tasks and operations. Analyzing data, making models, predictions, and forecasting with it, route optimization, personalizing customer service are just a few things AI showed that it’s capable doing for companies over the previous year.

Analytics

If AI is the linchpin to a variety of technology, data is the life force for it. In turn, it’s through analytics that that life force can best be utilized and understood. Although analytics have been around for a while, they are growing more advanced. 2019 saw these advanced analytics grow a great deal more prominent.

A post by Gartner on the technology trends of 2019 explains,

Advanced analytics are increasingly being deployed in real time or near-real time in areas such as dynamic pricing, product quality testing and dynamic replenishment. The availability of supply chain data — such as Internet of Things (IoT) data, dynamic sales data and weather patterns — provides the ability to extrapolate the current environment to better understand future scenarios and make profitable recommendations.

Internet of Things (IoT)

The previously mentioned article by All Things Supply Chain addresses the impact IoT is set to have on supply chains,

 In the future, the number of networked devices will increase enormously, thus boosting efficiency and productivity in supply chain. Gartner estimates the number of networked devices will be 25 billion in 2021. In the future supply chain, for example, these could be smart sensors on manufacturing floors in order to efficiently manage planned and predictive maintenance work. These sensors could also be used to closely monitor and track stock and the entire inventory. Not only does this save a lot of manpower, but it also allows you to optimally plan your future production.

However, while 2019 didn’t quite reach those heights for IoT, it certainly further cemented its place in the supply chain. Adoption rates of IoT technology increased a great deal. As the year brought with it a greater focus on providing an end-to-end experience, companies began utilized IoT to help deliver that experience. And, as the above article displays, IoT adoption will only increase going forward.

Automation

Lastly, automation carried on expanding its presence in supply chain operations. Supply chains involve many tedious and repetitive tasks. Automation has allowed those tasks to be handled by machines like robots and drones. However, what 2019 showed is that automation doesn’t only mean a loss of human labour. It also means better human labour and supplemented human labour. Automation allowed workers to focus on more meaningful work in supply chains.. Not only that, but it also gave workers assistance with some of the more labour intensive tasks.

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Companies successfully adopting the latest and greatest technology has really become central to supply chains performing well. As such, the past year has seen companies move towards digital transformation. This is because digitization is the main mechanism through which companies can integrate the technologies they need.

As a 2020 predictions report from IDC states,

Digital transformation is now the overriding priority for most manufacturers and retailers, with the adoption of digital technologies aimed to improving efficiency and effectiveness in the shorter term while providing the opportunity to either disrupt their market segment or be resilient to others that may try.

Having said that, most companies are now in some state of digital transformation. Thus, the question then becomes what technology will they look to to best optimize their supply chains? Rather than something wholly new, it’s likely that the next year will simply see supply chains embrace more of the same, just to different degrees.

This article by Morai Logistics highlights technological developments set to take place in the coming year.

Artificial Intelligence and Machine Learning Will Become Even More Prominent

With more and more data being gathered by supply chains, it’s becoming increasingly important to utilize that data precisely. This is where AI and machine learning algorithms will come into play. By having sufficient data, machine learning can distinguish the quality data from the junk. In turn, it can use that quality data for a number supply chain functions. Key among those functions being forecasting and planning. But they are just two amongst many.

A Finance Online post further explains the importance of AI and machine learning,

Artificial intelligence (AI) will also play an essential role in making supply chains more efficient. The technology can be used to automate procedures using algorithms based on data from previous processes. Automation makes supply chains more efficient by eliminating human errors. AI also can identify patterns in the supply chain, and companies can leverage this technology to predict purchasing demands and manage inventory. This takes the guesswork out of planning and procurement, eliminating the need for planners to do the same calculations over and over.

Blockchain Adoption and Belief Will Come Gradually

Blockchain technology has gained a great deal of attention in recent years. In the past year though, some of that attention has turned sour. A great deal of skepticism has arisen regarding a variety of its limitations. At the same time, the technology has finally made some strides.

TradeLens, in particular, has elevated itself into being the largest blockchain platform available for shippers. Nevertheless, it will take some time before blockchain is trusted and adopted en masse. Until then, as will be the case in 2020, the technology will experience slow and steady progress.

Robots Will Work With (Rather Than Replace) Human Workers

Robots are an emerging presence in supply chains. As a result of this, many workers in the space have grown concerned about the likelihood of robots replacing them. While some degree of displacement seems inevitable, much of the worry is overblown. 2020 will see humans working alongside robots in supply chains. And, in many ways, this will liberate human workers.

A recent Supply Chain Digital article expands on this,

Machine learning algorithms will handle boring, repetitive tasks like data hygiene and number crunching that planners with domain experience will use to make decisions. In our customer base, technology automation hasn’t replaced humans but elevated the roles of chronically overstrained planners, allowing them to focus on work that creates the most value.

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Rapid advancements are taking place in the way supply chains operate, and companies need platforms to support them. These advancements are coming in the form of a variety of technological innovations. Namely, these innovations include artificial intelligence, machine learning, big data, the internet of things, automation, smart sensors, and much more.

However, in turn, with all these new technologies and their corresponding platforms, there comes a need for all them to work together cohesively. This means all their data and processes being consolidated and being able to interact with each other. This is where the cloud comes in. It’s the technology that binds everything together.

This ebook covers just what cloud computing is, a couple of its most important features, and why those features are of such value to supply chains.

What is the Cloud, and What Makes it Such a Significant Technology for Supply Chains?

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

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