The last decade has seen some incredible advancements in the world of supply chain management. Today’s way of moving products is unlike anything ever imagined, from 3D printers to autonomous trucks. For many, it’s easy to forget that there are still a lot of obstacles that prevent successfully shipping products. In fact, manufacturers face many challenges while trying to ship goods, and most of those issues stem from one thing- people.
The global pandemic has only made things worse, as traditional supply chains have been disrupted and exposed. The good news is that new technologies are emerging that have the potential to help overcome these challenges. Here are a few examples of how supply chain tech has evolved over the last decade.
Driverless Transportation is a Reality
The logistics industry now understands the tremendous opportunity of driverless technology. This has been in development for years, but it’s only now that manufacturers and suppliers are starting to see it come to fruition. One of the logistics companies’ biggest challenges is finding enough drivers to meet customer demand. It has become increasingly difficult as the industry has grown and the pool of potential drivers has shrunk.
Driverless transportation could help alleviate this issue by providing a never-ending supply of drivers. Driverless vehicles are much safer than their human-operated counterparts. They don’t get tired, distracted, or make mistakes. This could lead to fewer accidents and a better overall experience for customers. In the end, creative transportation solutions are critical to reducing costs and increasing efficiency and sustainability.
Software Shift
Warehouse management software is being replaced by commercial off-the-shelf (COTS) applications. In fact, many 3PLs are now looking to move away from proprietary software and adopt Tier 1 systems. This shift is happening because these tools are easier to use and offer greater flexibility, scalability, and ease of deployment.
The true differentiator among providers today isn’t their technology; it’s their ability to deliver real business intelligence. A few 3PLs are taking advantage of this opportunity by becoming experts in the application and layering business intelligence onto the system. Others are simply building out their BI capabilities into existing enterprise resource planning (ERP) systems. Either way, the end goal is to make fast and better decisions.
Blockchain Technology is Gaining Traction
While blockchain technology is still in its early stages, it’s already starting to make an impact in the world of supply chain management. As result of this distributed ledger technology, it has the potential to transform the way business is conducted by making transactions more secure and transparent.
One of the most promising applications of blockchain is its ability to track and trace products throughout the supply chain. This would give all stakeholders visibility into where a product is at any given moment and could help reduce delays, errors, and fraud. Another potential use case for blockchain is contract management. By using smart contracts, businesses can automate the process of negotiating, executing, and enforcing agreements. It would save not only time but also reduce the risk of human error.
The Internet of Things (IoT) is Transforming Supply Chain
IoT devices are already starting to transform supply chains. For example, companies are using IoT-enabled sensors to track products throughout the shipping process. This real-time visibility allows businesses to identify issues and take corrective action quickly. Furthermore, IoT devices can be used to optimise warehouse operations through automation. For instance, sensors can be used to track inventory levels and trigger reordering when necessary. It helps ensure that businesses always have the right amount of product without overstocking or running out.
Artificial Intelligence (AI)
The use of artificial intelligence (AI) is one of the most promising new technologies for supply chain management. AI can be used to automate tasks, such as identifying patterns and trends in data. This information can then be used to make predictions about future events, which can help businesses pre-empt problems and take advantage of opportunities. The use of AI throughout the supply chain can also improve decision-making. For instance, it can be used to choose the best route for a shipment or to determine the most efficient way to load a truck. By making these decisions automatically, businesses can save time and money.
The Way Forward
As the world of supply chain management continues to evolve, businesses need to stay ahead of the curve. The use of new technologies can help enterprises improve their operations and better meet the needs of their customers. Hence, corporations need to embrace these new technologies and find ways to use them to their advantage to stay competitive.
(The author is Mr. Santhosh Reddy, Co-Founder and CTO of ShakeDeal and the views expressed in this article are his own)
