The trends in supply chain management are evolving everyday, ranging from the availability of big data, supply chain digitization, and omni-channel marketing. This year is almost over, and it’s time we look at some of the latest supply chain trends of 2021.
Supply chains make up an essential aspect of most businesses today and have a direct impact on the economy. Thus, understanding the factors that affect supply chains is crucial. Against this backdrop, we can make a few predictions about the supply chain trends in the coming year. Technology is behind most of these trends and has a great effect on every business today with the supply chain as the backbone of all. In supply chain management, the use of such technology has grown beyond stock taking, order, and delivery. In times of the new normal, next year’s trends cover technological innovation at its best.
Let’s discuss each of the upcoming trends in detail.
1. Agile Supply Chain
In 2021, for supply chains to function at its best, there is a need for more flexibility and agility. Throughout 2020, we have witnessed many unforeseen events like a pandemic or a cyclone that have caused disruptions in the supply chain. With more agility, such natural events are proved to be managed better, and an agile supply chain can help navigate scarcity and disruption.
2. Green Logistics
Green logistics describes all attempts to measure and minimize the ecological impact of logistics. A notable trend in supply chain management will be the advancement of eco-friendly logistics, which can also be cost-effective. The plan of switching to a sustainable supply chain has started with using minimum packaging material. In the coming year, more supply chain businesses will conduct environmental auditing and set sustainability targets.
3. Blockchain
Customers love same-day delivery, but this can be difficult in logistics. Blockchain technology can play a big role here by making it cost-effective and paperless. By cutting out middlemen in the supply chain, logistics reach straight to customers much quicker. Blockchain helps to dish out the digital data through a transparent and secure process by using an end-to-end encryption system to keep all data safe.
4. IoT and Big Data
As IoT advances, businesses can automatically manage their inventory and stock movement better. The system works by collecting big data into a central system for analysis. With the help of big data, supply chains can derive valuable insights and improve operations, hiring processes, and marketing strategies.
5. Omni-channel
The ultimate customer experience is what everyone expects. This entails providing them with a direct and convenient shopping experience. The business requires convenient omni-channel supply chains to enable customers to have a smooth experience.
6. AI and Machine Learning
AI and ML technology has brought about several new processes in supply chains, and large scale automation is one of them. Machine learning can read, identify, and replicate complex content, patterns, and procedures. Starting with inventory management and seamless communication, innovative technologies for improving supply chains can go a long way.
There's no doubt that processes have become faster, smarter, customer-centric, and sustainable. AI, blockchain, and IoT technologies will enable supply chains to automate and simplify operations. The trends on security, transparency, market prediction, big data analytics, and flexible and agile supply chain processes will continue to grow as the year closes. Being informed and ahead of supply chain trends will help minimize disruptions and enhance your business's productivity and efficiency.
At H&S, we balance sustainability and profitability by building future-ready 4.PL solutions. We work with innovative technologies such as electronic vehicles, blockchain, AI, etc by keeping us updated about the new and upcoming trends.