Are you ready to witness major changes in supply chain management by 2023? Are you providing logistics and supply chain management services? If yes- your wait is over, as you have scrolled to the most fitted article.
The supply chain industry is driven by technological advances, shifting consumer behaviour and new business models. As businesses move forward to implement efficiency and sustainability, many techniques are developing to revolutionize supply chains.
Predictive analytic tools, blockchain technology, artificial intelligence and Industry 4.0 are some ways businesses will operate their supply chains in the coming years. It will allow businesses to make better judgements, lower expenses, and respond fully to shifting market conditions.
This article will teach you about logistics and supply chain management trends to stay updated with industry movements.
Top 6 Supply Chain Management Trends in 2023
- Use of automation
Automation is becoming increasingly important for providers of supply chain management services. It helps companies to reduce costs, streamline operations and increase efficiency. The company can gain advantages by investing in cutting-edge solutions like AI/ML, robotics and the Internet of Things (IoT).
AI and automation are valuable tools that speed up your supply chain and help you remain competitive in your niche. As per findings from a study conducted by Blueweave Consulting, the worldwide AI in the supply chain market achieved a valuation of $5,610.8 million in 2021. Projections suggest that this figure will surge to $20,196.6 million by 2028, driven by a compound annual growth rate (CAGR).
What are the benefits that AI and automation bring to business?
- Automation businesses in decision making and customer service.
- Find the best suppliers to build rapport.
- Inventory flow should be optimized and automated to keep business running smoothly.
- Businesses can save time and money and gain returns on investments.
2. IoT- Internet of Things
IoT, or the Internet of Things, is interconnected with computing devices, digital machines, objects or people to give unique identifiers (UIDs). It helps transfer data without the need for human or computer interactions. In addition, IoT can improve warehouse management, fleet tracking, inventory control, and technological and mechanical maintenance.
Other pieces of technology use IoT devices for greater benefits. Suppose your logistics company uses GPS tracking devices on your delivery vehicles. The real-time data collected from these devices can be utilized to optimize delivery routes, reduce fuel consumption, and enhance on-time delivery performance, all of which contribute to cost savings and improved customer
satisfaction.
Did you know these advantages IoT brings to supply chain management?
- It will show the system’s function, from machine performance to supply chain to logistics.
- It automates procedures and cuts labour costs.
- IoT lowers manufacturing and delivery costs by increasing consumer transaction transparency.
3. Use of blockchain
Blockchain or distributed ledger technology has immense potential to transform the supply chain sector. Logistics and supply chain management companies can securely store or distribute data throughout their entire network if they start possessing this technology.
Further, businesses can use smart contracts to automate operations and verify parties’ compliance with predefined requirements. Blockchain allows firms to quickly trace items across the supply chain, ensuring that authenticated items are delivered to clients. It reduces the evolution of pirated products entering the markets.
How is blockchain beneficial to warehousing service providers?
- It enhances transparency and traceability, showing complete visibility of good movements and storage.
- Blockchain simplifies cross-border trade by securely digitalizing customs and compliance documents.
4. Cloud-based solutions
These solutions have provided a flexible and scalable platform for streamlined operations. Moreover, they have enabled real-time visibility and collaboration across the entire supply chain from manufacturer to customer. They have facilitated inventory management, demand forecasting and order fulfilment.
In addition, cloud-based logistic systems have enhanced data security to make sensitive information more secure. It offers anywhere accessibility, remote work and market change adaptability. They play a major role in driving efficiency, reducing cost and staying competitive in the logistics and supply chain.
What are the pros of cloud-based solutions for supply chain management?
- It easily adjusts resources to match demands without any major investments.
- These solutions provide minute insights about inventory, shipments and orders.
- They help in data protection and cyber threats.
5. Supply chain sustainability
Sustainability has become an important topic in supply chain business, as many organizations are finding ways to lower their footprints. Using carbon footprint calculators, companies adopt sustainable practices that reduce environmental effects, like eco-friendly packaging materials, green logistics, and renewable energy solutions.
It will ensure that the supply chain is flexible and sustainable even after rapidly shifting market conditions that help businesses to stay competitive in an environmentally conscious world. According to Gartner sources, in the coming 18 months, 84% of supply chain leaders intend to allocate investments toward climate adaptation and mitigation measures.
What are the few benefits for the sustainability of the supply chain?
- Sustainability in the supply chain encourages businesses to rely on resources other than scarce resources and explore alternative, sustainable options to ensure a steady supply chain.
- It reduces mitigating climate-related risks to ensure continuous operations without major disruptions and to contribute to long-term business stability.
- Sustainability leads to better quality products and services by reducing defects and increasing customer satisfaction.
6. Supply chain agility
Nowadays, the paramount focus is on modern logistics and supply chain management. It includes strategies and technologies that allow companies to rapidly adapt to changing market conditions, customer expectations and unexpected disruptions.
However, the key components of supply chain agility consist of micro-services, micro supply chains and usage of micro warehouses and fulfilment centres. As a result, business breaks down complex supply chain processes into modular and customizable components. It responds effectively to niche markets, ensuring effective order fulfilment.
What advantages does supply chain agility offer?
- It helps companies to rely on real-time data analysis and effective communication amongst supply chain stakeholders.
- Supply chain agility allows companies to reduce disruptions and meet customers’ evolving needs.
7. Risk management in the supply chain
No business wants risks in its cycle; risk reduction becomes crucial for every organization. Every business tries to handle possible risks before they become main issues; they equip themselves with resilient strategies to deal with unforeseen changes and interruptions.
In this matter, the business should implement solutions that help to quickly detect and handle possible hazards, deploy predictive analytics systems and detect possible dangers before they occur. In addition, they should adjust their plans and operations to changing conditions.
What are the pros of risk management in the supply chain?
- Risk management identifies potential disruptions and takes proactive measures to mitigate or address them.
- It helps minimize operational downtime and maintain the continuity of the supply chain.
- In addition, it also enhances cost-effectiveness by reducing expenses related to disruptions.
How do we build effective supply chain management for the future?
There are a few ways businesses can minimize the risk. Let’s read below,
Source locally
The term denotes that your company has all it needs to run efficiently and maximize its potential. For example, build a warehouse near operating areas. In this case, you can be free from shipping and receiving goods worldwide or store them until they get delivered. You can also save time dealing with exports and duties to save operation costs.
Build strong relationships with local suppliers to contribute to the sustainability of regional supply chains. Besides, you can buy raw materials from local suppliers and sell them directly to local customers. It will connect people to your business as you get noticed by local enterprises.
Expand your supply chain
If you expand your investment, it helps lower risks. The same applies in the supply chain; the more options you have, the more your inventory is more stable. Further, you can also find dependable products and suppliers substitutes for your inventory. A 3PL fulfilment company can help you manage and keep your inventory stable.
Invest in customer experience
As time is becoming more crucial and running faster than before, on-time delivery is expected by customers. They expect their favourite items to be available to them on time. Hence, businesses should rapidly adapt to changing customer behaviour, and if they fail to recognize or satisfy their needs, they might resort to losing customers to competitors.
How is BDS a one-stop solution for all your supply chain management?
Calculating past years, most companies have realized that their supply chain and logistic strategies have to be changed as they are no longer effective. Businesses must emphasize supply chain management trends to overcome unexpected disruptions. In this case, BDS is a logistic company in Australia that collaborates much with global macro trends.
They have a team to make efforts that stand out, run more efficiently, and enhance services in 2023. As a result, businesses will gain change and evolution, leading to improved supply chain and logistics performance and resilience for many years.
