Supply Chain Technology: 5 Indicators That it’s Time for an Update
https://morailogistics.com/supply-chain-technology-5-indicators-time-update/
The speed at which technology within the supply chain progresses is, at times, hard to keep up with—here are 5 key signs that a supply chain needs to modernize.
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 The reason that they’re a mark of out of date technology is because now transportation management softwares exist.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.
Top 10 Supply Chain Trends for 2021 – Part 2
https://morailogistics.com/top-10-supply-chain-trends-2021-part-2/
After such a hectic and transformative year for the supply chain, 2021 is finally around the corner—here are the biggest trends to keep an eye on going forward.
So much has changed in the world of supply chain over the previous 12 months. With the onset of the COVID-19 pandemic, supply chains were forced to dramatically reorient themselves in order to survive. In a landscape altered by such a global event, which is still actively impacting the running of supply chains today, the changes are going to continue going into next year. Last week, we highlighted the first five most significant trends we are anticipating in the near future. Yet, there remain many more movements in the supply chain to watch out for.
This article by Morai Logistics completes the top ten trends that will shape supply chains in 2021.
Increases in Third-Party Logistics (3PLs)
Companies are always looking for ways to reduce the cost of their supply chains. If they can do so while improving its quality then all the better. Next year should see more companies looking to third-party logistics in order bring down costs, delivery times, and improve customer service.
An article from Finances Online further explains,
Partnering up with third-party services can help companies reduce costs while improving customer service. For instance, more businesses will integrate and start to offer inland services, reducing overall freight costs, and streamlining the supply chain. Integrations are particularly useful for shippers who often use a combination of sea and land transportation for their products. With integrated services, delivery times become shorter, and customer service improves.
An Elastic Logistics Surge
What’s become clear with the monumental disruption that the pandemic has brought is that supply chain efficiency isn’t enough. In order for supply chains to be able to survive in the current climate, as well as be resilient against further disruptions down the line, they have to be flexible and adaptable enough to deal with whatever fluctuations the market brings them. This more malleable approach is elastic logistics. Logistics made to make supply chains responsive enough to shape themselves around demand.
Further Adoption of IoT
As mentioned in Part 1, visibility throughout the supply chain is one of the highest priorities for companies. A large part of that effort to achieve such visibility is via the continued adoption of IoT devices. Certainly, IoT has already become a prominent part of supply chains. Yet, that prominence is set to grow even further, as companies look to IoT technology like sensors to give a complete and continuous view of their operations.
Artificial Intelligence (AI) Driven Automation
Automation comes in many forms. One of those forms (automated robots) was covered in Part 1. Another kind of automation that is becoming increasingly critical to the supply chain is automation facilitated by AI. One of the main reasons AI is playing such a big role in automation is that it can automate certain supply chain processes via algorithms based off previously collected data. This means the removal of human error and, thus, boosted efficiency.
Agility will be Paramount
Finally, as suggested in the Elastics Logistics section, there has been something of a realignment of supply chains this year. Supply chains can no longer prioritize being lean over everything else. With ongoing, and the possibility of future, large scale disruption hanging over supply chains, it’s become clear that agility comes before everything else. An agile supply chain means a supply chain that is able to quickly adjust its operations to respond to market pressures. That’s the supply chain of the future.
Top Technology Trends: Supply Chain 2020 – Part 2
https://morailogistics.com/top-technology-trends-supply-chain-2020-part-2/
In the year of the pandemic, technology is more important than ever for supply chains—here are four more technological trends to pay attention to in 2020.
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.
Top Technology Trends: Supply Chain 2020 – Part 1
https://morailogistics.com/top-technology-trends-supply-chain-2020-part-1/
Supply chain technology is in a state of constant advancement, especially this year, given the circumstances—here are four of the biggest tech trends in 2020.
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.
Top 4 Supply Chain Technology Trends in 2020
https://morailogistics.com/top-4-supply-chain-technology-trends-2020/
Supply chains are largely defined by the technology that facilitate them, as such it’s crucial to know the technology trends that are shaping the year.
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.
Supply Chain Technology 2019 – Year in Review Part 2
https://morailogistics.com/supply-chain-technology-2019-year-in-review-part-2/
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?
Supply Chain Technology 2019 – Year in Review Part 1
https://morailogistics.com/supply-chain-technology-2019-year-review-part-1/
With 2019 almost at an end, and technology having been the focus of so much of it, it’s critical to look back at some of the supply chain technology that defined it.
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.
2020 Predictions: Supply Chain Technology
https://morailogistics.com/2020-predictions-supply-chain-technology/
As 2020 fast approaches, it’s worthwhile looking ahead to where supply chains are set to go in the coming year, particularly with respect to the technology that bolsters them.
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.
Digital Transformation: Top 5 Supply Chain Benefits
https://morailogistics.com/digital-transformation-top-5-supply-chain-benefits/
Digital transformation has become a big buzzword lately, but it is nonetheless key to companies having well functioning supply chains going forward.
There has been an almost overnight paradigm shift regarding attitudes towards digital transformation. It has gone from being a goal to achieve at some nebulous future date to something that is a matter of survival. Companies of all kinds have come to see the numerous potential benefits of digitizing their practices and are embracing it as a result. The same is true of supply chains. Perhaps even more so.
An article by McKinsey explains as much,
McKinsey research suggests that, on average, companies that aggressively digitize their supply chains can expect to boost annual growth of earnings before interest and taxes by 3.2 percent—the largest increase from digitizing any business area—and annual revenue growth by 2.3 percent.
This article by Morai Logistics covers the top 5 advantages supply chains that digitize their operations are set to experience.
Decision-Making
A critical component of a healthy supply chain is the framework in place that drives its decision-making. Through the technological advancement digital transformation brings with it, that framework evolves as well. Getting access to machine learning in particular means supply chain managers can have very accurate predictions at their disposal. Which in turn can help them be much more precise with their decision-making.
As the earlier mentioned McKinsey article outlines,
Machine-learning systems can provide supply-chain managers with recommendations for how to deal with particular situations, such as changing material planning and scheduling in response to new customer orders.
Automation
In turn, digital transformation also unlocks automation. Which is set to play an enormous role in boosting supply chain productivity and efficiency. It does this in several ways. This includes reducing manual errors, completing laborious tasks faster, and making data collection more reliable and accurate. Automation is central in making tedious, repetitive supply chain work faster and more accurate, while involving less waste.
Customer Experience
Moreover, digitization brings with it a significant improvement to the customer experience companies can give their clients. This is because it enables clients to have end-to-end engagement. They can track their orders throughout the shipment and delivery process. This gives customers the transparency that they’re after and the peace of mind that comes with it.
Integrated Processes
Additionally, supply chains have gotten larger and more complex over the years. This is in large part due to the opportunities and costs globalization has brought with it. As such, it’s more important than ever for the many parts that make up a supply chain not to be silo’d but rather be integrated into one system where they can all be followed. Digital transformation means being able to have a single data management platform where all the disparate parts of a supply chain can be kept track of. This also means less resources and time spent on keeping up that tracking.
Future Growth
Finally, it’s important to keep in mind that digitization isn’t just some checkmark or objective to reach and move on from. It’s a mindset, culture, and infrastructure that allows for continued innovation and access to future technological advancements. It’s a foundation from which all future development can be built upon.
Slack addressed this in a post last year,
New technologies will continue to shake up customer expectations and processes. A digital business builds resilience by replacing rigid structures and inflexible processes with a workplace culture and infrastructure that can respond and adapt to new demands.
The 7 Greatest Obstacles Supply Chains Face Today
https://morailogistics.com/the-7-greatest-obstacles-supply-chains-face-today/
As supply chains continue to get larger, they also continue to get more complex and complicated, leading to a number of challenges that they have to overcome.
Today’s supply chains are facing a whole host of new demands and hurdles. Supply chains are larger than ever. Not only that, they’re more sophisticated than ever before as well. While both of these things have a number of upsides, numerous obstacles arise as a result of them. Growth and progress come with difficulty, after all.
Blume Global highlights some of the ways modern supply chains have to evolve to the new demands placed upon them,
The modern supply chain must evolve to meet new demands and supply chain challenges, and supply chain managers need to plan ahead to keep everything flowing smoothly. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network.
This article by Morai Logistics covers the 7 biggest challenges supply chains are currently facing.
Technology
With the rapid advancements in technology pertaining to supply chains, not integrating them is a considerable liability. Whether it be artificial intelligence, machine learning, automation, or some other innovation, they are all critical to running an optimal supply chain. More broadly speaking, that’s why digital transformation is such a fundamental part of the modern day supply chain.
Cybersecurity
With that being said, taking your supply chain digital also brings about further risk. It opens up your operations to the threat of hacking and other cybersecurity vulnerabilities. These can slow down down, disrupt, or halt the running of a supply chain. Thus, it’s of the utmost importance that, when digitizing, companies also secure their new technologies. This includes vetting their partners and vendors.
Forecasting
Given the previously mentioned increased size and complexity of the modern day supply chain, forecasting is more important than ever. As such, companies have to be as precise as possible with their supplies to meet customer demands.
The Houston Chronicle explains,
Proper forecasting helps ensure you have enough supply on hand to satisfy demand. An overestimation of demand leads to bloated inventory and high costs. Underestimating demand means many valued customers won’t get the products they want.
Overseeing Inventory
Tying into forecasting, is the need for the management of inventory. In order to have the adequate amount of supplies on hand to satisfy demand, companies need to be able to closely track their inventory. With that being the case, having proper count, visibility, and quality assurance of inventory is critical in today’s market. In order to meet these requirements, companies need to invest in the proper inventory management software and technology.
Market Expansion
Companies looking to grow will have a harder time than ever in today’s market. A company that expands its supply chain to new regions has to contend with a variety of issues. This includes new policies, cultural impediments, governmental incentives and disincentives, political instability, weather, and more. Without covering all these bases, a company is destined for failure.
Customer Service
Due to the all technological advancements mentioned earlier, customers are more particular in their demands than ever before. They want their orders delivered faster, with greater care, and for less. And it’s up to companies to cater their supply chains to those demands. In turn, however, through the utilization of technology such demands are more feasible than ever too.
Globalization
Finally, in many ways, globalization’s central to many of the obstacles outlined here. The market’s gotten larger, more interconnected, and complex. With that comes uncertainty, confusion, and externalities that are hard to prepare or mitigate for. Thus, companies have to account for these factors when constructing their supply chain strategies.