Supply chains are the lifeblood of enterprises. Keeping all supply chain components operating as efficiently as possible guarantees on-time delivery of products. For this, you must keep a tab on the most recent supply chain statistics and trends.
This article compiles the most prominent forecasts for supply chain and supply chain management tools. By keeping abreast of supply chain management concerns and trends, you can ensure that your organization can rapidly adjust to these alterations.
Top Supply Chain Digitization Tools & Trends for the Future of the Industry!
Increasing the Attention to Supply Chain Resilience
After the turbulent events of the year 2020, it is reasonable to say that COVID-19 has influenced nearly everything. Numerous businesses have been thrown into disarray for several causes, including economic crises and variable lockdowns.
To recover from the crisis, industries are approaching new approaches. Supply chain industries are also adopting new ways and digitization to overcome the challenges.
Even a report shows that 59% of companies have adopted new cloud-based supply chain digitization and management practices over the last twelve months.
It is important to note that while supply networks have been interrupted, the impact also extends to value chains. When discussing value chains, everything from mining the raw material to delivering the final product to the client is included. While it is true that the epidemic impacted higher-tier suppliers, some of the most severe harm was incurred by the practically invisible suppliers at the lower levels. Any bottleneck or disturbance in a value chain has catastrophic implications on subsequent processes.
In an effort to remain flexible and robust in the face of an uncertain global environment, companies are considering new approaches to risk assessment in light of the emerging threats. Recent turmoil is compelling supply chain managers to pause and assess their risks.
- Where are your supplier partnerships’ weakest links?
- Are there any crucial portions of your value chain over which you have no control?
- Your supply chain might be disrupted if you rely on products from a single supplier.
- Do you have sufficient insight into your end-to-end processes to respond quickly to unforeseen disruptions?
Building Optimal Resilience
Focus on short-term day-to-day activities and understand the demand and maintain the production accordingly. This tactic will also help you in addressing the gaps and implementing cross-silo efforts that ensure an agile response to fast-moving events.
Integrating and Streamlining Operations
In this stage, you need to focus on three steps:
- Creating a nerve center for the supply chain: You can incorporate AETOS into your workflow that will allow the cross-functional team to proactively respond to any issue.
- Plan for supply-and-demand disruption: AETOS solution will give you real-time insights into your supply chain, which will help you predict and know the issues. This will allow your managers to take immediate actions to eliminate the problem.
- Re-evaluate just-in-time inventory strategies: Proper inventory management is very important for building resilience. AETOS solution will give your team a real-time and accurate update of your inventory, which will save you from going out of stock or storing extra stock.
Acceleration of Digitization
Many businesses have already adopted digitization, thus garnering its benefits. Nevertheless, adoption rates remained low before the pandemic.
Even a March 2020 research indicated that just 12% of supply chain experts actively employed automation technology such as artificial intelligence (AI).
However, over the past two years, supply chain professionals have increasingly adopted these technologies. Why?
Well, these technologies offer better insight into every aspect of the supply chain. This helps managers to make better-informed, real-time decisions.
Latest Approaches to Supply Chain Management
Responses to disruptions in the supply chain require more than smart technologies. You need a well-trained and well-managed crew that is up to the task.
As skilled labor shortages continue to worsen, it is more important than ever for manufacturing executives to strengthen their personnel management and retention strategies.
You should also look for strategic capabilities throughout the employment process, such as data analytics and machine learning experience.
Numerous organizations utilize human capital management (HCM) tools to handle these projects. An HCM system may expedite and simplify essential employee retention, development, and training processes. It also covers fundamental responsibilities that enhance the employee experience.
Furthermore, here are some latest approaches to supply chain management:
- Adopt the Internet of Things
- Go for supply chain digitization
- Ensure risk management and resiliency
- Approach circular supply chain (more focus on recycling) management
- Increase focus on sustainability
Greater Supply Chain Visibility and Transparency
Manufacturers have been investing in supply chain visibility and transparency-enhancing technologies for years. This is mostly due to buyers’ desire to understand more about the origins of items and maximize their customer value.
In the coming years, the importance of visibility will further increase. Increasingly, manufacturers are utilizing current ERP (Enterprise Resource Planning) and SCM software to address issues regarding their suppliers’ stability, quality, and lead times. With this expanded insight, supply chain processes can be improved, and costly interruptions and delays can be avoided.
Growth in eCommerce and Omnichannel Techniques
Have you witnessed the sudden growth in the eCommerce industry?
In fact, approximately $4 trillion of the $6 trillion total value of yearly manufacturing shipments originates from eCommerce manufacturing shipments. This represents almost 67 percent of the market.
In large part, manufacturers are adopting eCommerce because it facilitates the direct sale of goods to customers. Companies are focusing more on diversifying their fulfillment tactics in order to strengthen their competitive edge and capture the bigger market.
A More Diverse and Expanded Supplier Base
Pre-pandemic, it was usual for businesses to rely on a single source for a single component. Despite the fact that this strategy worked rather well at the time, it is now obvious that it might negatively impact product distribution. This is especially true if a supplier’s headquarters are located in a nation with differing lockdown standards.
Businesses realize that expanding their network of suppliers is critical. This not only helps to diversify fulfillment and mitigate risk but also enables companies to satisfy client expectations consistently.
Product Simplification and Supplier Diversification
To minimize bottlenecks and maintain on-time production, manufacturers must have confidence that they will have prompt access to the necessary parts.
Numerous businesses produce items with hundreds or thousands of complicated components. In such situations, a supply chain deficit is particularly disastrous.
Thankfully, many businesses are discovering methods to cut their raw material requirements. This strategy, along with supplier variety, enables them to navigate short-term challenges effectively.
What Are the Different Ways Firms Use Supply Chain Analytics to Stay Competitive?
Using supply chain data analytics, the supply chain industry can understand many unknown dangers that are uncovered. It can also clarify short- and long-term objectives and act as a roadmap for predicting future risks.
Data gathering and analysis can do this by finding patterns throughout the supply chain and emphasizing both good and negative outcomes. But why supply chain analytics is critical?
Well, this helps you optimize the supply chain and risk management across the supply chain. The following are some other advantages of supply chain data analytics:
- Anticipate potential issues. When you can see trends as they develop, it is simpler to recognize patterns and warning indications that can help you anticipate upcoming events. Supply chain analytics is a powerful tool for identifying indicators that things are deteriorating, and prompt preventive actions are required.
- Increase responsibility and performance among those involved in freight management. The analysis of supply chain data can assist in discovering issues within teams, organizations, and individual personnel. Due to the interrelated nature of the supply chain sector, a problem in one department or step of the process might kick off a domino effect.
- Eliminate inefficiencies in the supply chain to enhance overall performance and profitability. Preventing errors from occurring or resolving them as soon as they develop is essential for maintaining productivity. The analysis makes it all feasible and simple. That’s why supply chain analytics is necessary, and every manager must adopt it.
What Are the Key Features of Implementing Transportation and Inventory Management Software?
Inventory Planning for RM
Digitized Order management
Transport software enables the administrator to manually or automatically enter order information into the system. This allows order planners to analyze the data in real-time and assign a route and transport vehicle.
The dashboard features give order planners a consolidated view of the specifics, enhancing the data’s visibility. The drivers can update information from their end while on the route, and the order planners can access real-time data regarding schedule changes and vehicle locations. In addition, the transportation planning tool enables optimal space usage by calculating the available loading space in the vehicle.
Transport Visibility Elements
Transport software improves the effectiveness of collaboration and coordination. It is useful for freight forwarding and optimization in terms of cost savings between various sites, scheduling and resolving regular difficulties, and tracking product movement.
Transport software enables system administrators, drivers, and other stakeholders to collect real-time data and make smarter decisions at every level.
Artificial Intelligence (BI) And Analytics
Data is a valuable tool in every enterprise. Artificial Intelligence systems may gather data and do analytics to create important insights that can be used to make wise decisions for each carrier, product, and route. The transport software with AI capabilities can gather, analyze, and summarize supply chain and transportation data and metrics to help you formulate the most effective logistics and transportation plans.
As supply chain trends continue to develop, the art of management is also changing. New advancements will have both good and bad unintended outcomes. To remain updated and position your business for success, you must strive to predict and continue adapting to new trends. Also, companies need to incorporate an agile and robust solution to their workflow that can fit their existing system easily.
You can reach out to us. We will tailor a customized cloud-based supply chain management solution for you. The solution will allow you to keep a tab on your whole supply chain and get real-time information. The interactive interface gives you an easy-to-understand graphical view of your efficiency, which will allow you to take the necessary steps at the right time. Thus, mitigating the risks and leveraging your business.