SCM is one of the most integral parts of business operations. But with upcoming tech advancements, what is the future of the global supply chain?
With rising consumer demands, global supply chains are expected to survive in the face of ongoing instability. Supply chain management assures efficiency in planning, sourcing, manufacturing, delivery, and returns. So how do these elements tick a company’s well-being?
Supply Chain is a vast field consisting of seven functional areas. Purchasing, Inventory management, Manufacturing, Demand Planning, Warehousing, Transportation, and Customer service are the prime operations. Though these are independent functions, a certain level of association impacts overall smooth processes.
Supply disruptions, mobility limitations, and office closures are some challenges in SCM. Amongst all, the existing COVID-19 pandemic paves the path for digital transformation.
In this article, we’ll discover about SCM and the next big thing it will face-
Purchase and procurement are acquiring goods and services. The management of supply chains has been significantly difficult. Physical flows are becoming longer and more interconnected as product portfolios get sophisticated. AI-based SCM solutions come up with integrated end-to-end solutions to address constraints from procurement to sales.
Demand-forecasting models, integrated business planning, end-to-end transparency, dynamic planning optimization, and automation of the physical flow are part of AI-based solutions. All of these build on prediction models and correlation analysis to understand causes and effects in supply chains better.
Companies should intertwine AI solutions like predictive maintenance and processing optimization with master data quality to manage the wider value chain. Only with successful AI inclusion, businesses can sustain the tech drift.
Sustainability is a must
A generation of millennials and GenZ are the next consumers. Frequency of extreme environments, social media influence, and constant awareness are some raised concerns by customers. Companies are heavily investing in eco-friendly supply chain solutions to win customer loyalty.
By embracing green fleets and electric HGVs, companies reduce carbon footprints. In the name of environmentalism, businesses are making gradual changes toward sustainability.out the relationship becomes much easier.
IoT for optimization
IoT helps supply chain professionals with demand prediction. Ecommerce and retailers are the forefront players in demand planning which has evolved with ML and various data points. Real-time inventory management is possible to take internal measures for safeguarding supply chains. IoT shelves are the best to restock supplies as they detect shortages automatically.
Before the IoT technology, many supply chain experts had to do everything they could to avoid difficulties, then pray that everyone else involved adopted the appropriate risk-reduction measures. People may now observe warning indications of disaster in real-time, allowing them to intervene to keep things on course.
Smart Customer Service
Customer service is a vital part of Supply chain management. Chatbots have transformed the world of online consumer connection and communication. They are developing a trend known as robotic process automation(RPA). It makes the whole process of resolving client issues trouble-free.
RPA takes care of everything from backlogged office tasks to tracking shipments and nurturing clients after their orders are delivered. These customer services are a system of prebuilt chatbots providing automated documentation, communication, and endless workflow.
To end with
Failing to merge digital supply chain twin and control tower programs will cost 80% of enterprises significant value by 2026. AI will be able to provide teams with more granular and frequent insights than ever before. This visibility, however, will not be sufficient to extract greater value from AI-based supply-chain solutions.
Organizational reforms, business process modifications, and upskilling activities work in tandem with a significant technological investment. With such up-gradation, the global supply chain has two options: evolve or dissolve.So, it’s the perfect time to start thinking of your company’s supply chain management systems before it’s too late!