Today’s global market is fast-paced. Your customers expect efficient service delivery without sacrificing quality. The future of supply chain management involves digital solutions that offer better visibility and resilience. These supply chain trends shaping the future will help your organization become more agile while enhancing customer satisfaction.
Key Drivers of Change in Supply Chain Management
Global supply chain disruptions starting in 2020 highlighted the need for flexibility across industries. At the height of the pandemic, businesses lost an average of $184 million due to supply chain disruptions. Incorporating technology into your supply chain can help you better weather these disruptions and potentially prevent them entirely.
Incorporate these supply chain trends into your business as part of your digital transformation.
Adoption of Digital Supply Networks
Today’s supply chain industry trends include creating a digital supply network (DSN). Traditional supply chain management is often fragmented. You’re using different tools and databases to manage various steps of the process, which makes it harder to see where operational inefficiencies exist.
DSNs involve using a connected system with components including artificial intelligence (AI), the Internet of Things (IoT), and other types of technology. These networks offer real-time visibility into every aspect of your supply chain, allowing you to make data-driven decisions to manage your inventory levels, plan your routes, and do much more.
Integration of Advanced Technologies
Digital supply networks are the future of supply chain management. Here’s how technology improves supply chain resilience.
Artificial Intelligence and Machine Learning
Companies are using technologies powered by AI for different supply chain applications, including inventory management, predictive analysis, and route planning. AI can analyze a large volume of historical data to identify patterns and help you plan for changes in customer demand.
AI can analyze data to help you mitigate potential supply chain disruptions. This means you can proactively plan for natural disasters, geopolitical issues, trade barriers, and other factors that could disrupt your supply chain.
Internet of Things
IoT refers to various internet-connected devices. To manage your supply chain, you can use IoT sensors to enhance your visibility. Placing sensors on your goods and vehicles can give you real-time insights into how they’re moving from the warehouse to the customer.
Whether you work in manufacturing or you’re using machinery in your warehouse, IoT sensors can also help you monitor your equipment for potential signs of failure. These sensors can assess routine wear and tear and alert you when a machine needs maintenance. IoT sensors can also help you track and manage the inventory levels in your warehouse so you can order more before you run out.
Blockchain Technology
A blockchain is a digital ledger that stores information in a decentralized location. These secure ledgers use cryptography to keep people from tampering with the records. Once you add a block of data to the ledger, it can’t be altered without permission from everyone else in the network.
You can use a blockchain to coordinate with your vendors and see real-time records of each transaction. A blockchain also lets you bypass intermediaries between you and your global vendors to speed up transactions.
Emphasis on Supply Chain Resilience
Digital technology helps you build resilience into your supply chain through real-time data, predictive analytics, and more. Supply chain platforms powered by AI and machine learning give you deeper insights into market trends and anticipated demand. IoT sensors help you identify weaknesses in your supply chain operations so you can fix them before they escalate into major problems.
Route planning tools can help you optimize your shipping and delivery routes to minimize your carbon footprint and save you money. Digital supply chain tools can also help you comply with various regulations by helping you identify and correct potential compliance risks. You also get a digital paper trail to showcase your compliance during routine audits.
Advanced analytics can help you optimize your supply chain while strategizing for potential disruptions. For example, an AI-powered market analysis tool can highlight how a natural disaster would impact your vendors. You can then plan to procure raw materials from another supplier or use a different shipping route to avoid the impacted area.
Sustainability and Circular Supply Chains
Circular supply chains aim to reduce your carbon footprint and other environmental impacts by reducing waste and maximizing resources. IoT technology can help you analyze and refine your processes to cut back on emissions. These tools can also help you track reusable containers to cut waste.
Using predictive analytics to optimize your inventory can cut down on your energy consumption, especially when it comes to storing and disposing of excess backstock. You can also use AI-powered tools to source ethical suppliers and optimal transportation options.
Challenges in Digital Transformation
Digital transformation is the future of supply chain management, but it does present some challenges.
Data Privacy and Security Concerns
Operating an interconnected digital supply chain management system does put you at risk of data breaches. If someone attacks your system, you risk compromising data from suppliers, distributors, and customers alike.
Make sure you’re following regulatory requirements for data protection to keep sensitive information safe. Do a risk assessment of all potential vendors and choose reputable partners. Develop an incident response plan to follow in case you do suffer a data breach. Finally, continually monitor and update your digital infrastructure.
Need for Workforce Upskilling
Your digital transformation should streamline your workflows and make your team’s jobs easier. However, you do need to spend time training your employees to implement new technologies effectively.
Foster a culture of continuous improvement and upskilling before implementing your digital transformation. Designate your most tech-savvy employees to test new systems and train others as you slowly roll them out.
Transform Your Supply Chain Today
Get in on today’s supply chain management industry trends and start your digital transformation journey with Surgere. We offer digital solutions including asset management and tracking, localization, reusable containers, and more. Our solutions offer real-time insights into your supply chain. Use them to optimize your warehouse or track your inventory from warehouse to customer.
Take advantage of our industry expertise and IoT solutions to collect and analyze the data you need to drive your business forward. Contact us today to learn more about how Surgere fits into your overall digital transformation strategy.
