The past years have been challenging for companies due to the pandemic and overall abruption in the production line even when the demands were increasingly high of the products. Challenges included over following demand of health care and other necessary product as well the globalization of the supply. While many companies fell short to meet these demands and had to stop production for a while other were able to overcome it by using supply chain technologies.
Dave Waters has said, “Supply Chain is like nature, it is all around us”. There has been an increasing interest around supply chain management and technologies due to their advantages in cost efficiency, automation and so on. Therefore, many companies are looking for ways to leverage technology along the supply chain to collect data, drive automation, create efficiencies and reduce costs as well.
In fact, 57% of companies believe that supply chain management gives them a competitive edge and 70% believed that supply chains are a key driver for quality customer service. This statistic proves that a majority of companies are aware of how important supply chains and associated technologies are for any company.
Hence, we are curated the 4 best supply chain technologies to use if you want a competitive advantage for your company.
- Artificial Intelligence. (AI)
We all know the power the data has. Data can unlock solutions of problems surrounding complex global supply networks. AI can be a stepping stone to a series of improve in supply chain management of your company. In fact, a research conducted by McKinsey & Company found that 61% of executives who have introduced AI into their supply chains report decreased costs, and more than 50% report increased revenues. Even more than a third of study respondents reported revenue increases of more than 5 percent.
Therefore, a combination of AI, machine learning, and predictive analytics can help companies to automate operations, improve delivery time stamps, manage inventory effectively, create sourcing relationships which are beneficial and create customer experiences that can help increase satisfaction and boost sales for the company.
2. The internet of things (loT)
Internet of Things technology has the potential to revolutionise any major industry. It exhibits its full and complete capabilities in operations such as supply chain management. The ability to monitor assets throughout the logistics journey can help eliminate misplaced inventory and lost shipments, further reducing risk and revenue loss. The loT is used by many over the years, it’s benefits like real time location tracking, contingency planning, monitoring warehouse, transportation and many others are seen as conventional methods of change in supply chain management.
In fact, The IoT market is currently worth $388 billion. And is expected to surpass $500 billion in 2023. loT can help in tracking location, weather conditions, environmental status, traffic patterns, and more, suppliers can leverage AI and advanced analytics to determine various aspects that might affect their business.
3. Block Chain.
Block chain might not be always associate with supply chain but it creates an undeniable record of transactions and that technology is very well situated to track the provenance of goods and establish trust in shared supplier information. One of the biggest benefits of blockchain is it’ potential for facilitating track-and-trace applications that help companies document the chain of custody of goods. In fact, a deloitte surveys found that 91% of respondents expected to see a quantitative, verifiable return on their blockchain investments in the next five years.
The global blockchain technology market is estimated to accumulate $20 billion in revenue by 2024. Block chain can be a game changer in supply chain but one of its major complications is that to succeed, efforts will require an industry initiative that benefits a variety of competing partners.
4. Automation and robotics.
Automation as well robotics already exists in the manufacturing sector and even in some supply sectors however automation isn’t simply using machines to replace human labour. It includes software and other advanced technologies to enhance and streamline operations and find solutions in real-time rather than identifying a problem post-production and burdening the company with unnecessarily wasted resources. Even robotics in manufacturing helps ensure consistency. Engineers can program robots to do a repetitive task in the exact form every time, eliminating human error and deviations in product quality.
Statistics suggests that Automated storage and retrieval systems can increase accuracy in orders by up to 99%. Even IDC predicts that by 2023, 65% of warehouses may be using robots and analytics to optimize storage and increase warehouse capacity by over 20%. The potential for human-robot collaboration will fuel large-scale deployments throughout the supply chain.
5. Product lifecycle management (PLM) software.
Statistics suggests that 73% of supply chains experienced pressure to improve and expand their delivery capabilities. PLM software can be a great way to start towards supply chain management solutions and improvements. This particular software manages data and processes at each stage of production, servicing, and sales across the supply chain, it offers a way for manufacturers to collaborate and control data while allowing for customer, partner, and organizational feedback due to increased transparency, ultimately creating better, more complex products, resulting in greater revenues and speed to consumers.
In fact, Product Lifecycle Management Software Market size was valued at USD 26.38 Billion in 2020 and is projected to reach USD 43.32 Billion by 2028, growing at a CAGR of 6.6% from 2021 to 2028. Therefore, use of any PLM software can provide you competitive edge when it comes supply chain management.
According to Invesp, 57% of Businesses have poor visibility across their Supply Chain. Therefore, it can be a great way to get ahead get a competitive upper hand for your business. These technologies will use supply chain mechanics and improve it to provide best customer experiences. Supply chain is in the midst of a high-stakes makeover with numerous option available for it in the market. In fact, 70% of supply chain officers believe supply chain will be a key driver of better customer service by 2020. So, incorporate any of these technologies in your supply chain and get the growth and improve you desire.