10 Supply Chain Management trends for Future

10 Supply Chain Management trends for Future

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by Alan Jackson — 1 month ago in Supply Chain Management 6 min. read
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The landscape of supply chain management continues to evolve, ultimately allowing suppliers to operate more effectively and efficiently across the board. In some ways, the improvements being made are in response to recent developments in supply chain management.

In others, organizations are working to make improvements in anticipation of future events and the world of commerce in general.

10 Supply Chain Management trends for Future

1. Technology complements supply chain teams

The development of technology goes hand-in-hand with the future of supply chain management.

Whether permitting distribution chain teams to enhance or add to their existing processes in some manner or another, newly-created technology and tools are but essential for survival as we proceed into 2020 and beyond.

More especially, the utilization of autonomous mobile robots (AMR) will probably be embraced by more companies during the next four to five decades. In embracing this technology, organizations are going to have the ability to streamline and automate choosing and packaging processes particularly.

This is not to say that autonomous technology will fully take over specific procedures along the supply chain. At least for the near future, there is still a demand for supply chain teams to have a hands-on strategy to their various procedures.

As an instance, while AMR technology focuses on resolving the real picking procedure, it depends on data from the organization’s warehouse management system–as handled by the supply chain group –to achieve that.

So, as we proceed into 2020, it is essential for supply chain teams to Comprehend the importance of integrating technologies into their procedures –not being intimidated by it

2. IoT makes warehouses smarter

We’re also bound to see the various tools and technologies used by supply chain teams become increasingly integrated with one another.

As an instance, though AMR technology may steal a few of this spotlight by a provider’s present warehouse management platform, this WMS probably performs a vast array of additional jobs that AMR now can not manage. Regardless of the slight overlap in performance, many supply chain teams might wind up needing to utilize the two tools to maximize their processes.

That being true, supply chain technologies will probably become not just more incorporated together with other such instruments but may become more technical, too. Supply chain teams that embrace this highly-integrated and technical technology moving ahead, then, will almost surely spur a huge increase in productivity during their procedures.

3. Pre-fulfillment speed becomes vital

The more effective an organization’s pre-fulfillment procedures are, the faster the client will get their purchase.

Conversely, however compact a team’s satisfaction processes might be, it will all be for naught if it is supply chain to normal.

In a bid to reduce lead times and enhance supply chain agility, Nike developed its processes to add”rapid prototyping with 3D and digital printing”

This enables Nike to capitalize on events and trends by creating new product iterations and bringing them to market nearly since the case in question unfolds. By Way of Example, following the blockbuster trade of LeBron James to the Lakers, Nike managed to get the newest jersey to promote at half of the period it had obtained in preceding years
Also read: Top 10 Successful SaaS Companies Of All Times

4. Customization along the supply chain

Generally speaking, modern companies deal with a variety of customers, each bringing their own needs and expectations to the table.

Because of this, implementing segment-based (and even account-based) changes to their supply chain processes will become critical. In creating these segments, companies typically focus on factors such as the buyers:

  • Geographic location: How close are they to sourcing and production?
  • Product-related needs: How does the product need to be individualized?
  • Order-related needs: How much product does the customer actually need? When does the customer need it by? And when will they need it again?

5. Inventory flow optimization

Inventory is a peculiar matter. Having a lot of it means you are squandering a ton of funds on lease, maintenance, and other expenses associated with an own storage area.

Having too small storage space, naturally, means your present stock is likely unsold–and also you don’t have any room for things that may be greater for your company.

The secret is to get only the ideal quantity of inventory space in order to not hinder your ability to satisfy your clients’ requirements, but maybe not too much that it cuts into your bottom line.

6. Further optimization of working capital

It has always been a wish to keep down operational costs while also making sure their procedures run efficiently. As technology enables supply chain teams to”dig deeper” in their procedures, organizations are going to have the ability to further maximize their working capital–nearly to near perfection.

To begin with, modern technology permits teams to accumulate a broad breadth of information regarding their distribution chain’s efficiency and effectiveness.

(Or, on a more optimistic note, info may also identify places where a supply chain runs precisely as intended. Business owners or managers can subsequently move what functions well in which place into different areas of their supply chain in some manner or another.)

Technology also allows for optimization of operating funds in allowing supply chain groups to produce dynamic decisions in the near-real moments. AI and machine learning can provide Immediate insight into trends, predictions, and other factors, consequently making it simple for teams to understand which route is the most cost-effective one to choose.

7. Enhanced relationships with suppliers

To forge strong, mutually-beneficial relationships with their suppliers, supply chains will be looking to:

  • Establish and maintain clear lines of communication
  • Collaborate to further both companies’ missions

Seeing communication, teams will need to make sure their providers are privy to some information that might influence their procedures whatsoever automatically.

By way of instance, if a purchaser is now overstocked on a particular solution, but their provider is not conscious of that, the provider may fill a scheduled purchase –that is going to wind up causing difficulties for the two businesses. Had the provider known to put a grip on the scheduled sequence, the problem would readily have been prevented.

The larger picture, however, is that forging relationships with providers goes deeper than simply optimizing procedures.

If, by way of instance, a provider operates on a stage of environmental sustainability, it could just make sense for them to guarantee the businesses they sell to are additionally committed to the exact same cause.

Not only will this type of connection inherently help further both business missions, but additionally, it will open the door for the two associations to co-develop ancillary efforts to further assist their cause.
Also read: The Top 10 Digital Process Automation (DPA) Tools

8. Blockchain provides universal visibility

Though no longer as “trendy” as it was in recent years, blockchain technology has the potential to positively impact supply chain processes in three key areas:

  • Providing accurate and up-to-date information at all times
  • Ensuring visibility of data and information for all stakeholders
  • Guaranteeing the security of all information contained within the blockchain

However, Gartner forecasts that, by 2023, 90 percent of blockchain-related supply chain initiatives will fall short of the intended objectives. In making this forecast, Gartner clarified that lots of supply chain teams fail to genuinely grasp the value blockchain technology brings to the table, in addition to a deficiency of follow-through in terms of actually implementing the technologies in their supply chain procedures.

Even though the hype surrounding blockchain has cooled off, the technology itself continues to evolve as time continues. Given the value of information throughout supply chain management, general, there is no doubt that individuals who get acclimated with this aging technology will likely be leaps ahead of the competition.

9. Capacity crunch continues, or does it?

Capacity crunch: the increase in demand that stretches a company’s ability to store and physically deliver orders.

When capacity crunch hits an organization, companies often do one of two things:

  • Do nothing, and fail to provide for at least some of their paying customers
  • Invest more capital into transportation-related resources (e.g., drivers, trucks, insurance, etc.)

In any scenario, the organization’s clients are those who wind up paying more.

In the first situation, if the organization does not have the capability to send to a given client, this naturally means the customer is not likely to get what they are expecting in any way. In the next scenario, the corporation will probably raise its costs to compensate for the higher cost of doing business.

  • Obviously, what is bad for your client is bad for the business.
  • Greater efficiency means greater capacity to carry out.

In working to maximize every part of your supply chain, you will enable your staff to run in their greatest capacity–in a fraction of the expense to your organization. Subsequently, your organization will probably continue to have the ability to satisfy the requirements of your clients well into the future.
Also read: Best Online Courses to get highest paid in 2021

10. Further integration of supply chain into overall operations

Rather than being seen as merely a mechanical—almost tangential—part of a company’s overall processes, supply chain teams are now starting to be recognized as the integral entity they actually are.

To put it differently, organizations are beginning to find that supply chain procedures are not only about fulfilling orders. The data, information, and knowledge which flows through these procedures may be utilized to the advantage of the firm total.

While the Possible usage of supply chain-related information is infinite, some of the most Frequent uses include:

  • Utilizing demand Calling to Program Advertising promotions
  • Improving sales Strategies by focusing on Satisfaction speed and Efficacy Information
  • Communication to C-suite execs the Monetary Effect of an Alteration to supply chain Procedures (for better or worse)

Though supply chain management might not be the flashiest aspect of running a company, we’re sure to see it play a much more integral role in business operations moving forward.

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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