Every industry adopts new technology from time to time. Factors such as globalization and evolving consumer demands fuel the need to upgrade constantly. The supply chain industry too has been leveraging established digital ecosystems and finding new ways to stay relevant in a hypercompetitive market. Let’s discuss some of the technological advancements that supply chain partners have embraced to up their game.
1.AI for better data-driven insights and less human error
Today, everyone is looking for data-driven insights. By harnessing a combination of technologies such as AI and machine learning, supply chain companies can automate their warehouse operations, focus on quick deliveries, and manage inventory more efficiently. This leads to better customer experience and increased sales.
With little human intervention, AI with its suite of strong algorithms can extract data and insights at a granular level. This reduces human error while tracking inventory data. AI is the game changer in delivering business value for the supply chain industry.
2.Predictive analytics for improved decision-making
Like AI, managing data and driving better insights is an objective for predictive analytics too. It looks at the present stream of incoming data, arranges it into labeled data structures, and then empowers businesses to take advantage of the forthcoming opportunities. The insights can improve decision-making in supply chain management by increasing visibility and flexibility. Methods that earlier relied on human decisions can be powered with prognostic and predictive analytics as it reduces scope for errors.
3.IoT for in-time manufacturing and on-time delivery
The use of IoT is rising as a part of comprehensive end-to-end supply chain procedure. This technology helps to support manufacturing operations and control production assets, fleet management, and freight monitoring. IoT uses location tracking to deliver the right knowledge to suppliers to facilitate just-in-time manufacturing and on-time delivery. For example, if a shipment of refrigerated goods is at risk for equipment failure, suppliers armed with knowledge can automatically reroute the delivery to a closer distribution center or proactively dispatch a repair crew to prevent spoilage. It must be kept in mind that advanced technology of IoT comes with risks of cyberthreats and physical dangers, such as oil rigs, or manufacturing line explosions, and that’s why the aerospace and defense industry avoids the use of IoT.
4.Blockchain for tracking business transactions
Blockchain technology contains features such as smart agreements, or easy traceability as a part of the vastly distributed supply chain management system. It is the primary technology that can bring the factor of immutability –– nothing can ever be erased. It is mostly used as a digital ledger technology. But other than that, it also has the ability to do a bunch of things that can prove to ease the process. For example, blockchain can track the movement of gold and diamonds from mines to foundries, retail stores, and customers by creating a digital record that contains a unique ID, mentioning color, carat, and certificate number. While primarily associated with cryptocurrencies, blockchain also ranks high on the list of technologies poised to bring improved visibility and transparency to supply chain processes.
5.Immersive tech for enhanced customer experience and employee engagement
Immersive technology has the potential to transform the supply chain industry. It is used as an interaction model to amplify human capabilities, such as onboarding new workers through immersive on-the-job training. This advanced mechanism, comprising augmented reality (AR) and virtual reality (VR), is also used to boost the customer experience. It includes better repair and maintenance abilities in engineering and warehouse management systems. This innovative method also helps clients conceptualise their products better.
These advanced mechanics are giving a makeover to supply chain management. Companies are adapting to advanced technologies with the hope of revolutionizing the ecosystem. And experts have already predicted that this transition will result in increased profitability.
At H&S, we balance sustainability and profitability by building future-ready 4.5PL solutions. We work with innovative technologies such as electric vehicles, blockchain, AI, etc to create a digital supply chain. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.