The post COVID-19 world is set to rely heavily on technology for operations. As digital transformation picks up pace, organizations will have to rethink processes to comply with government regulations and ensure customer safety.
The supply chain management sector is also set to witness changes on the digital front in operations, and we have explored some trends that are likely to shape the course of work in this sector.
Supply chain digitization
According to a report by PwC, the goal of digitization is to enable an efficient and transparent supply chain that enhances responsiveness. A digital environment provides increased visibility into operations. From resolving issues to being future-ready, it will help organizations anticipate any potential threats and devise a plan for preparedness and response. It will reduce the dependency on silos and streamline output at all levels.
Cloud-first operations
Cloud solutions will drive processes and will be preferred by firms over on-premise computing infrastructure owing to costs and maintenance. The rise of Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) in the supply chain domain indicate that cloud computing is the future. Integrated cloud-based supply chain applications offer an intuitive user experience, improved functionality, and easy access to new features and releases.
Omnichannel supply chains to become the norm
To deliver value and meet customer demands, businesses will focus on offering an omnichannel buying experience. This allows customers the freedom to shop both online and in stores. Omnichannel supply chains will increase logistic demands to cater to both individual customer orders as well as replenishing stock at outlets, boosting growth at an operational level and increasing satisfaction at a customer level.
Sustainability to take centre stage
Sustainability has become a key global trend with customers demanding products built through sustainable practices. Manufacturers and suppliers have been compelled to try alternatives to traditional supply chain practices. Some key changes that are being adopted in delivery and manufacturing include:
Switching from plastic to cardboard packaging
Using smaller packaging
Reducing carbon footprint
Adopting initiatives to become carbon neutral
Including sustainability as part of their supply chain planning
Growth in circular supply chains
The traditional linear supply chain model is being replaced by circular supply chains. Manufacturers are opting the 3R model — recycle, reuse, and rework discarded products. Customers favor businesses that opt for recycled materials for production and practice safe disposal. Through circular supply chains, many leading companies are discovering additional value in the market.
The rise of agile supply chains
Unlike the traditional supply chains that focused on reliability, consistency, and low cost, new supply chains need to additionally develop flexibility and agility to stay relevant in the market and beat competition. One of the major changes in the supply chain management trends is a switch to local or near-shore supply, which adds agility. This change offers advantages such as:
Shorter delivery times
Lower shipping costs
Quicker response to demand changes
With customizable, future-ready supply chain solutions for enterprises across industries such as FMCG, e-commerce, consumer durables, etc., H&S stays on top of all supply chain management trends. We aim to revolutionize logistics with our unique 4.5PL model which reduces global carbon footprint, optimizes cost, and improves efficiency. We also use technologies such as blockchain, artificial intelligence, and IoT to build digital, automated supply chains for our clients.
Conclusion
Supply chain management is undergoing transformation at digital, design, and operation levels, which will benefit manufacturers, consumers, and the environment (to an extent). Omnichannel supply chains will become the new norm and organizations will have to increasingly focus on adopting a digital-first and sustainable-first approach to meet expectations of the new consumer.
References
https://www.riverlogic.com/blog/top-supply-chain-trends-you-need-to-know-in-2020
https://www.sdcexec.com/sourcing-procurement/news/10358095/hitachi-consulting-six-key-trends-changing-the-supply-chain-management-today
https://www.strategyand.pwc.com/gx/en/insights/2016/digitization-more-efficient.html
https://www.riverlogic.com/blog