Supply Chain Trends that are Moving the Businesses towards Optimization
Companies today are overwhelmed by massive amounts of information coming from suppliers and customers. Supply chain management (SCM) includes movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-to consumption. SCM facilitates companies by saving time, reducing costs, and optimizing processes. Following are some of the trends of this network that are going to change the upcoming facets of the businesses:
Smarter Warehousing: Warehousing is growing more complex as customer orders become more specific, numerous and varied. But delivery of the products has to be faster, cost to be lower, and service quality to be sophisticated to meet the customer demands. SCM escalates labor costs, and increases access to process automation solutions and is changing the way enterprises run their distribution and fulfillment of the centers.
New network, tools, and strategies: The demand for fast, low-cost shipping is driving the placement of more and smaller inventories of fulfillment centers are necessary.
Blockchain: Blockchain is incredibly revolutionizing the SCM. The technology aids supply chain operators to improve security and achieve visibility. Also, the distributed and open ledger of the tech makes the system transparent.
AI and IoT: These technologies are increasing productivity in the supply chain industry. They can solve the inefficiencies in today’s supply chains. Before the technologies, SCM worked with customers not knowing where and what condition their goods are in. Also, manufacturers lost their time, money and inventory due to unpredicted freight movement. Companies’ turning to Artificial Intelligence and IoT to optimize their supply chains reduces time and costs while speeding up processes.
Supply chain processes induce agile solutions in processes, tactics, and strategies as the transformation journey navigates. Digital workflows replace manual processes and address the most critical areas in SCM.