According to Statista, the global worth of the supply chain management software procurement market doubled over the last decade, indicating the significance of the supply chain in the current global economy. We live in a hyper-interconnected business world, where multitudes of businesses operate in different demographics. Supply chain management ensures a stable network and strong connection needed for smooth economic coordination. A well-thought-out supply chain management strategy benefits you with boosted customer service, reduced purchasing and production costs, and improved financial status.
With technology upgrading supply chain management dynamics, it has become a crucial element of business strategy. Where it adds to the customer value, the rapid technologization of the supply chain has raised customer expectations. Business organizations are now expected to constitute creative ways and technologized approaches to meet consumers’ needs and requirements. With the global pandemic destroying economies and industries on the verge of complete collapse, the uncertainty about the future has intensified. The endemic is impacting the finance sector; it has re-emphasized the importance of digital supply chain management.
As per Deloitte, the world might witness a global trade war considering the decreased economic resilience and increased unemployment. These changing dynamics impact the supply chain leading to different trends and developments in supply chain management. With 2020 coming to an end, here are a few new trends that will define the New Year for supply chain management:
AI-based automation
Artificial Intelligence is not a new concept. It has been around for decades and will probably dominate the future in upcoming years. With AI reigning over every industry and sector, supply chain management is no exception to that takeover. AI surfaced as the primary propellant in the technologization of the supply chain, from speeding up data processing to the development of efficient algorithms. AI brought invaluable insights while incorporating advanced pattern identification techniques for minimum human errors and handling complex tasks.
Adoption of Blockchain
Blockchain is referred to as the biggest breakthrough of the technology industry. However, the recent advancements have proved their worth in every industry and sector. The main purpose of this technology was to enhance operational transparency while reducing ambiguity in the data sharing process. Blockchain works on end-to-end data sharing with concerned parties. It benefits from improved security and incorruptibility of shared data. Integration of Blockchain in the supply chain allows for better transparency and security.
Cryptocurrency is another addition to the Blockchain that is becoming popular in the supply chain. This digitized form of currency is now the most preferred payment methodology in cross-border trade. It provides the users with speedy transfers, better security, and higher transparency in financial systems.
IoT
Besides Blockchain, the Internet of Things is another technological advancement redefining supply chain trends. Similar to Blockchain, IoT guarantees exponential improvement in transparency with advanced management systems. The technology allows for ease of use with hassle-free integration across the entire supply chain, from starting point to the finish. IoT-powered supply chain benefits you with increased operational efficiency, minimized downtime, increased responsiveness, and doubled ROI.
Robot revolution
Digitalization is not restricted to supply chain management and operation only. Instead, rapid technologization has automated manual tasks and jobs to eliminate every possibility of human error. With the introduction of drone delivery and mobile robots, the industry has experienced extensive automation of labor-intensive tasks. The benefit of robotic automation is freeing human resources from tedious tasks, allowing them to work on crucial decision-making.
Agile supply chain
Agility means the ability to be flexible enough to absorb shock, including natural disasters and unanticipated ups and downs of the industry. Incorporating machine learning with AI-based algorithms, well-put-together models of SCM could predict future trends and developments. Personalizing shipments is another factor gaining importance in the chain. The core requirements of an agile supply chain without cost addition are empowering the end customers, ease of customizations, and flexible infrastructure.
All in all
The supply chain trends focus on sustainability and flexibility, making rapid technologization the core need of the industry. The agility and omnichannel supply chain will dominate the norms and trends of the supply chain. The industry is currently working in unprecedented times, but with innovation changing the dynamics, it is all set to optimize business operational efficiency.
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