Role of logistics industry in revival of post-Covid economy

COVID-19 has spread across the globe at a rapid pace, disrupting and debilitating the economy. India has faced several challenges due to the country-wide lockdown, with GDP plummeting to -8.9% as of November 12, 2020.  There have been labor shortages, cargo capacity challenges, a manufacturing slowdown, order delays, stuck shipments, as well as demand and supply shocks.

 The pause in manufacturing brought down demand for logistics services, which likely resulted in downward pressure on prices across warehousing, freight, and logistics. When countries around the world began locking down, minimal export-import movements amplified the crisis in the logistics space.

 The logistics industry contributes significantly to the national economy by creating employment and generating foreign investment influx. It connects various markets, suppliers and business areas such as material handling, warehousing, packaging, supply chain management, procurement, and customs services across the country. Now that lockdowns are being lifted, the industry can help revive the post-COVID economy.

Steps taken by the logistics industry for revival of economy

Rapid technological advancements, changing consumer preferences, government reforms, and shifts in service sourcing strategies are expected to lead the transformation of the Indian logistics ecosystem. In this new normal, there have been strong market trends towards the e-commerce segment, transforming interaction between brands and consumers.

India’s economy started to bottom out with lockdown getting lifted. During the festive season, India witnessed a strong surge in online shopping while consumers wanted to stay indoors. As per the Festive Shopping Index 2020 by the Retailers Association of India (RAI) and Litmus World, 75% of consumers have considered online shopping. Flipkart’s ‘Big Billion Days’ and Amazon’s ‘Great Indian Festival’ was a big success this year amid this global pandemic as these two organizations had ensured that the consumers get access to everything they need from the comfort of their homes at affordable prices. It was possible because of their 

The pandemic also brought an increase in the demand of essential items such as groceries, food, and pharmaceuticals. Many logistics companies catered to this demand while adhering to safety protocols with contactless delivery. In this situation, the logistics industry focused on increasing the efficiency of services and optimizing cost.

Another method adopted by the logistics industry was to help the MSMEs and align with the government’s self-reliant movement. For small-sellers who want to take their business online and increase their customer base, the logistics industry has become an all-inclusive solution. With automated warehousing and packaging services, the industry should ensure that there is minimal weight discrepancy and a seamless post-order experience.

A recent Mckinsey survey (October, 2020) on consumer sentiment across the globe reveals that consumers will continue to shop online even after the pandemic is contained. Those from metros and smaller towns have already started placing orders for non-essential goods and services. What’s more, the stimulus package too will play a crucial role in putting more cash in the hands of consumers for non-essential consumption.

While other sectors and industries may take more time to recover from the impact of COVID-19, the logistics sector will be one of the few that will continue to operate at an increased pace and bounce back. The discretionary spending that it may spur in due course of time will significantly contribute to the post-COVID  revival of the economy and unlock India’s economic growth potential in the post-pandemic world.

A country’s economic growth depends largely on the logistics companies and their ability to transform themselves. Thus, it is important to choose the right supply chain partner who can help elevate businesses post-COVID.

At H&S, we balance sustainability and profitability by building future-ready 4.5PL solutions. We work with innovative technologies such as electronic 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.

Source: https://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/indias-logistics-sector-to-reach-usd-215-bn-by-2020-survey/articleshow/62693817.cms?from=mdr

https://www.news18.com/news/buzz/how-micro-logistic-sector-can-become-a-critical-enabler-in-indias-economic-revival-post-covid-19-2685031.html

https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19

https://economictimes.indiatimes.com/news/economy/indicators/moodys-revises-india-forecast-for-the-calendar-year-2020-to-8-9/articleshow/79186213.cms

https://retail.economictimes.indiatimes.com/news/industry/majority-indian-consumers-consider-online-physical-stores-for-shopping-survey/78713603

Top Supply Chain Management Trends in 2021

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.

5 things to check before choosing a supply chain partner

There’s no denying that supply chain management, though the backbone of businesses, is an incredibly difficult function to manage. That’s why most businesses prefer to partner with third- and fourth-party logistics companies who have the expertise and resources needed to operate a supply chain successfully. With their help, enterprises can focus on their core competencies while supply chain runs smoothly behind the scenes.

But choosing the right supply chain partner is not easy when there are thousands of options available. What makes it even harder is that once a company is selected, switching partners becomes a time-consuming and costly process. So, here are some things you must do to ensure you make the right choice:

 Define your business and goals

In a clear and specific manner, lay out what you do and how you do it. Then, chart out the supply chain challenges your business faces along with specific goals you want to accomplish with your outsourcing partner.

 Collaborate with specific partners

Select the companies that provide industry-specific solutions as they are in a better position to accommodate your unique needs. Also, you must ensure that the partner of your choice has a proven track record of providing services that are critical to your business — whether it is warehousing, distribution, or fulfillment. The best bet is to select a partner that specializes in all these services.

 Scalability and flexibility

If business expansion is your top goal, then it’s inevitable that you would need extra supply chain support. That’s why the partner of your choice should have the capital and resources to match your growth plans. On the other hand, your partner should also be prepared to adjust resources if the demand drops.

 Transparency and access to data

Your ideal supply chain partner should provide you complete visibility into each element of the supply chain. From the status of inventory to lead times — you should be able to understand all the KPIs to conduct a fair audit of your performance.

 Technological compatibility

Many third- and fourth party logistics providers have developed proprietary technological tools to manage transportation, vendors, suppliers, and inventory effectively. So it's imperative to ensure that these technological tools can be integrated into your ERP software. A seamless integration will also help in ensuring visibility in the supply chain management process.

 H&S checks off all these boxes with its end-to-end services. We specialize in 4.5PL services including warehousing, distribution, and transportation for industries such as FMCG, e-commerce, electronics, etc. We design your optimal supply network and execute the same using our network of warehouses, large fleet, and proprietary technologies. With us as your supply chain partner, you can focus on your other core competencies worry-free!

 With the current volatile business environment, selecting the right supply chain partner has become more challenging than ever before. The uncertainty has made several enterprises reevaluate their current partners and their capability to handle market volatility. Nevertheless, the 5 questions above can help you stay on the right track when you take this crucial decision.

3 steps for a sustainable supply chain

The harsh reality of convenience is that the higher the demand for lightning-fast deliveries, the greater is the environmental damage. But most consumers aren’t aware of this problem — they want to associate with brands that are socially responsible, but they also want to buy more products and have them delivered faster than ever before. This presents a conundrum for businesses because environmental preservation and consumption don’t go hand in hand. Consider the following scenario:

A customer avails same-day delivery — and a vehicle has to be arranged promptly to ensure that the product reaches on time. This unexpected order disrupts the logistics provider plans and causes them to rethink delivery schedules for other orders.

On the other hand, if a product is ordered with a standard delivery procedure, then the logistics provider can determine an optimal route to deliver a variety of products within the same time frame. This route optimization technique reduces fuel consumption and harmful emissions — ultimately minimizing the environmental impact of on-demand delivery.

So, how can companies address the ecological and economical challenges of rising consumers’ expectations?

1. Reduce energy and resource consumption

Enterprises should consider going paperless in the majority of their operations. They can start investing in RFID, blockchain, IoT, and other technologies that eliminate the need for documentation. Further, they can reduce energy and resource consumption in the warehouse, by using LEDs for lighting and battery-powered vehicles or robots for navigation.

2. Switch to recyclable packaging

In the US alone, 165 billion cardboard packages are shipped annually, which amounts to about a billion trees. Additionally, the plastic used to protect products in transit is choking up oceans and releasing harmful emissions. So, companies must make it a priority to partner with packaging companies that use corrugated material. 46% of corrugated boxes can be used to produce new boxes, thus reducing the cost of packaging as well as the waste generated. 

3. Optimize transportation

Transportation contributes to almost 30% of greenhouse gas emissions in India. Enterprises can reduce this number significantly by determining the most ideal location for their warehouses and production plants. This minimizes the distance traveled during the procurement and delivery of goods. Enterprise cans also leverage a route-planning system to find the most efficient routes to limit fuel usage. The key to green logistics is the process of route optimization. A well-planned driver route minimizes mileage, fuel use, and driving hours, and maximizes the productivity of the driver and utilization of the vehicle. By switching to intelligent transportation systems and smart route optimization processes, routes can be calculated with optimum delivery conditions including smart time and traffic flow. It calculates the routes using daytime-dependent, road-specific travel times that reflect the actual situation that drivers face on the road, even in crowded cities.

 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. to create a digital supply chain. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.

 The call for sustainability is only going to get louder in the coming years. And brands that fail to transform their logistics strategy can potentially lose customers, brand value, and reputation. But by mapping the environmental impact of the supply chain and taking measures to minimize emissions at each stage — businesses can conserve resources, save costs, discover innovative solutions, and most importantly, win over customers.

The Evolution of AI in Logistics and Supply Chain

Artificial Intelligence (AI) is no longer just a buzzword or a futuristic technology limited to the world of science fiction. Today, it is revolutionizing every sector it touches, and logistics is no different. The major benefit of AI is its ability to rationalize and offer insights that improve the odds of achieving business goals.

How does AI influence supply chain management and logistics?

 ●     Effective inventory management with predictive analytics

Ineffective inventory management can lead to unhappy customers, revenue loss, and impact production. With frequently fluctuating demands, traditional operation methodologies can’t comply with the requirements. Newer technologies like predictive analytics can evaluate customer needs better and reduce unnecessary inventory. The most effective way to manage inventory is to keep the retailers aware of the strongest selling items. Predictive analytics forecast trends of the most-preferred items, helping businesses meet growing customer demands.

 ●     Seamless stock audits

Seamless stock audits are necessary for identifying any discrepancy between stock records. AI can help in stock auditing by saving time, faster data processing, and improved accuracy levels, in business processes.

 ●     Ease of operational and cost optimization

AI is able to offer real-time, data-driven insights that reduce costs, enhance service quality, and bring down failure rates. These insights include graph-theory based predictions of optimal shipping routes, identification of traffic conditions, and predictions of possible peak hour delays. Knowledge of such factors ensures cost-effectiveness, so that delivery executives spend less time stuck on the road, and deliver more products.

 ●     Effective decision-making around supplier relationships

AI analyzes data sets generated from supplier assessments, audits, and credit scoring to allow companies to make well-informed decisions regarding supplier partnerships.

●     Transparency and seamless communication

Al helps with tracking the order status in real time. AI-enabled chatbots have reduced customer response times to a minimum and decreased the need for logistics companies to hire in-person customer support representatives. Chatbots can also be used to place purchasing requests, answer procurement-related questions, and communicate with suppliers regarding governance and compliance materials.

 Starting with inventory management and seamless communication, innovative technologies for improving supply chains can go a long way in the logistics industry. Some warehouse operations are also being integrated with augmented guidance, robotic systems, and big data to accelerate inventory management.  

 As per a Gartner report, supply chain organizations expect the level of automation in their supply chains to double in the next five years. The number comes as no surprise considering the increasing complexity of global supply chains and the skyrocketing expectations associated with an increasingly digital world. The pressing need for zero-error processes and high-speed deliveries has reinforced the demand for AI in the logistics industry — a need that will only grow in the years to come.

 Logistics companies are also making great strides with the process of supply chains by making AI affordable and accessible to leverage the technology in transportation. In the near future, AI will set a new standard of efficiency across supply-chain and logistics processes. The game is changing quickly, creating a “new normal” in how global logistics companies manage data, run operations and serve customers, in a manner that’s automated, intelligent, and more efficient.

With H&S as your partner, you can focus on providing customers the best products, while we work on building and executing the optimal supply chain model. Our state-of-the-art technology and solutions help you improve service performance, minimize costs, deliver superior customer experiences —  and scale your business to new heights.

 Source:

https://throughput.world/blog/ai-in-supply-chain-and-logistics/

https://readwrite.com/2019/04/15/how-ai-is-revolutionizing-global-logistics-and-supply-chain-management/

How Can Supply Chain Partners Help Retailers in the Festive Season?

India is a land well-known for its diverse culture and rich heritage. Despite diverse geographies, socio-economic factors, and consumer preferences, the country stands united in a common obsession — the festive season. The last quarter of the year is choc-a-bloc with festivities celebrated across faiths, and is therefore also known to be the busiest shopping period in the Indian calendar.

For retailers then, it’s no less than a chance to strike gold in terms of revenue. At the same time though, it is also a time when their supply chain processes and customer service will be pushed to their limits. Higher than usual demand for goods means that logistics need to be spot-on, day after day. In addition, retailers are challenged with the delicate task of maintaining the demand-supply balance through.

●     Forward planning
Retailers need to plan at least 3-4 months ahead of the festive season due to heavy demand of the product. It can be due to local preferences, traditions, and more. Same product sold across multiple locations could need a regional color packing option as a last-mile need creating pressure on the supply chain.

●     Better customer experience and higher profits
There is a need to reduce the reverse logistics of customer returns and low demand goods. Timely availability of size, model, color, or any other consumer preference at the retail level needs to be serviced to meet and improve the customer experience.

How to ensure a stable supply chain during the festive season

●     Timely delivery

It’s crucial to get products delivered to customers within the promised time frame as products might lose their value once the festive occasion has passed. To ensure zero misses in delivery times, logistics companies have adopted several capabilities such as multi-modal transportation, automated tracking, RFID, etc. They also have the capability to increase the number of delivery executives, vehicles, etc. to ensure timely delivery of products during these times.

●     Smart consolidation

While logistics plays a vital role in timely deliveries and boost retail, it is also an important expense that can impact the end profits. Logistics companies can easily consolidate shipments through centralized warehouses and optimize delivery dates and time -- a task far more difficult for small and medium scale businesses.

●     More warehousing space
During the festive season, the continuous flow of orders from customers can overwhelm the warehouses of businesses. In this scenario, partnering with a logistics provider is ideal since they have the capability to accommodate and rearrange shipments in their existing network of warehouses. Additionally, they can also lease new warehouses on a temporary basis at much lower costs than retailers.

To conclude, retail, from luxury to e-commerce, is an exceptionally price-sensitive business in the festive season as customers tend to buy products at a discounted price. So there’s always a price war between the retailers. Logistics, when utilized smartly, can prove to be a key factor in improving profits.

With H&S as your partner, you can focus on providing the best products, while we work on building and executing the optimal supply chain model. Get temporary manpower required to manage the deliveries on-time and in-full.

Our future-ready solutions help you improve service performance, minimize costs, deliver superior customer experiences —  and scale your business to new heights and keep you on-the-go in the festive season as well. We offer temporary warehousing space requirements for companies to accommodate the sudden splurge in orders during festival and e-commerce sale days. 

Source:

https://blog.locus.sh/how-your-supply-chain-can-accommodate-the-festive-season-rush/

https://www.logisticsinsider.in/managing-supply-chain-volatility-during-festive-season/

How electric vehicles are changing the future of logistics

How electric vehicles are changing the future of logistics

The call for sustainable practices is getting louder with each passing year. And today no organization can choose to exclude sustainability from their strategic goals. Logistics — a major part of any business — is unfortunately a huge contributor of harmful emissions into the environment.

One of the innovations in this space is the evolution of electric delivery vehicles. Electric vehicles (EVs) can reduce carbon emissions by up to 30% in urban areas — improving the quality of air in urban environments that are usually congested with carbon-emitting vehicles. So there’s no doubt that EVs are a better ecological choice. However, the benefits of EVs extend beyond environmental merits.

How EVs will benefit enterprises

1. Low fuel cost - The cost to charge an EV is almost one-third lesser than buying fuel, per kilometer.

2. Low maintenance cost - Companies with electric delivery fleets have reported 50% reduction in maintenance costs due to the lesser number of moving parts they possess.

3. Government support for the sector - Governments in several countries are providing financial incentives such as subsidies and tax breaks to make the adoption of EVs more affordable.

4. Reduce downtime - With EVs, delivery executives can save time by eliminating trips to the fuel station, especially while traveling in a dense urban area.

What are the limitations of EVs

●     Short driving range - Once fully charged EVs provide a driving range of anywhere between 60 to 300 miles making it unsuitable for longer commutes.

●     Time-consuming charging process - EVs can take anywhere between 4 to 24 hours to recharge as compared to refueling a conventional car.

●     High initial investment - The lack of demand and supply make EVs at least 30% more expensive as compared to fuel-powered vehicles.

●     Lack of charging stations - Charging stations are still limited in number especially in both metropolitan and suburban areas, making it difficult to drive longer distances.

Role of institutions in increasing the adoption of EVs in India

●     Industrial land for EVs - Allocating industrial land to develop EV manufacturing zones or providing land at subsidized rates would push automobile companies to invest in this technology.

●     Financial incentives - Policies to exempt tax payments and to waive permits, parking fees, registration charges, etc. will encourage more people to purchase EVs.

●     Infrastructure development - Government should invest in developing charging infrastructure and provide subsidies to private players for establishing such charging stations.

The future of EVs

As more and more businesses move towards cleaner and efficient technologies, the demand for EVs will hike. Many players are expected to enter the EV market — making these vehicles even more accessible and affordable to all businesses. The logistics industry is also all-set to adopt sustainable mobility considering the positive environmental impact and reduced cost per delivery. In a nutshell, we’re at the cusp of an EV revolution because sustainable logistics is no longer a good-to-have — it's a necessity for every emerging nation.

At H&S, we’re investing in electric vehicles to prepare our delivery fleet for this sustainable revolution. Part of our vision is making electric vehicles and other sustainable technologies a norm in the logistics industry. Hence, we will soon be building and operating EV-powered supply chains for our clients — so that they can also acquire the benefits of this efficient, smart, and sustainable technology.

Solve 3 major e-commerce supply chain challenges of with 4.5PL

Gone are the times where customers spent days waiting for a delivery. From a bar of soap to the latest smartphone — today, consumers expect to buy everything online and receive their products within hours. And if they can’t find what they are looking for, they are quick to jump ship to another e-commerce store. That’s why a flexible, transparent, and automated supply chain is indispensable for e-commerce businesses — however, it’s a process that’s difficult to master even for the most reputed e-commerce companies.

What are the supply chain challenges for e-commerce companies?

Insufficient warehouses

Online shopping gives customers the freedom to place individual orders for a variety of products. This has led to a surge in the volume of small order sizes — forcing companies to store as many products as possible. Further, the sheer variety puts pressure on picking and packing departments, who must ensure that the right product is shipped safely. Some companies may also need specialized layouts to store a wide range of products, leading to rising warehousing costs.

Ineffective inventory management

Even the most reputed online stores often fail to predict product demand, causing either a stock shortage or excessive buffer. The increased number of stock-keeping units (SKUs) amplifies the problem of inventory management in e-commerce. Tracking different SKUs during the shipping process and even in the warehouse further adds to the stress of managers. Close monitoring of perishable inventory is another unique challenge, especially for e-commerce stores selling fruits, vegetables, milk etc.

Lack of robust logistics

Though there are thousands of orders placed online, return and requests are equally frequent. And online businesses must be equipped to handle these on a daily basis without completely disrupting their logistics — however, many lack the experience, technological expertise, and warehouse networks to do so. This leads to shipping delays, long lead times, and unhappy customers.

How can a 4.5PL logistic partner help e-commerce companies tackle these challenges?

1. Extensive warehouses - A 4.5PL partner is equipped with distribution centers and the technological tools required to address all warehousing concerns. They also save companies from fixed capital expenditure that goes into setting up their own fulfillment centers. With logistics partners that offer a variable cost model, e-commerce businesses can also limit their warehousing expenses by only paying for the number of units sold.

2. Effective inventory management - Logistics companies can manage inventory and fulfill orders with help of warehouse management software, tracking and tracing solutions, IoT and blockchain tools, etc. These technologies eliminate the need for paperwork, manual management, and ensure stakeholders are updated in real-time.

3. Large fleet - They also offer a large network of carriers to support the consolidation of small shipments, significantly lowering costs. Strategically located warehouses also minimize the distance traveled and serve hard-to-reach locations in the shortest possible time.

Supply chain management is a tremendous challenge that many e-commerce businesses fail to overcome. However, an end-to-end logistics company can bring major transformation to by effectively managing warehouses, shipping, inventory, and overall costs.

With H&S as your partner, you can focus on providing the best products, while we work on building and executing the optimal supply chain model. Our future-ready solutions help you improve service performance, minimize costs, deliver superior customer experiences —  and scale your business to new heights.

Sources:

●       https://www.easyship.com/blog/supply-chain-challenges

●       https://www.sccgltd.com/archive/e-commerce-supply-chain-challenges-who-pulling-strings/

●       https://multichannelmerchant.com/blog/8-supply-chain-strategies-to-improve-your-ecommerce-business/

●       https://multichannelmerchant.com/blog/determine-3pl-system-requirements/

●       https://sipmm.edu.sg/8-strategies-successful-ecommerce-supply-chain-fulfilment-centre/

●  https://www.thebalancesmb.com/3pl-ecommerce-logistics-1141740

Six emerging trends in supply chain management

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

Create the supply chain of the future with Blockchain and IoT

In the era of e-commerce, the modern-day customer expects companies to provide products and services in an instant. Those single-day deliveries and one-touch payments have further heightened customers’ expectations. However, fast deliveries and changing customer needs are not easy to fulfill — especially without the support of an automated, robust, and collaborative supply chain network. Fortunately, new-age technologies such as blockchain and IoT have the potential to create transparent, connected, and strong supply networks. Here’s how these technologies are transforming supply chains as we know it.

Harnessing blockchain and IoT for improved visibility

Blockchain is a digital ledger that stores information on multiple systems and grants access to authorized users. While this decentralized technology is used to record transactions in a secure yet transparent manner, IoT (Internet of Things) links the physical world to the digital world. It collects data from objects, performs analysis, and communicates the same to systems and users. Together, these secure and integrative technologies track goods and share real-time data with every participant in the network. Here are a few advantages of blockchain and IoT:

●      Provide a continuous flow of information to different stakeholders across the supply network

●      Simplify traceability by linking data to specific products and materials

●      Ensure captured and received data is secure and tamper-proof via encryption

●      Eliminate the need for paper-based records, reduce administrative cost, and increase the speed of decision making

How H&S utilizes these high-end technologies

H&S offers a blockchain- and IoT-based track and trace solution that helps enterprises keep a record of outward and inward warehouse movements. The solution comprises of three layers:

●      IoT layer - A tag assigned to every package that enters the warehouse

●      Blockchain layer - A mobile app to record the stock stored in the warehouse and conduct stock audit automatically

●      Enterprise layer - A software to track stock movements and generate audit reports in real-time

How does an automatic track and trace solution work

●      A blockchain-enabled mobile device mounted on the warehouse gate takes stock as soon as the goods enter

●      Each product is assigned an IoT device which interacts with the H&S mobile app

●      The warehouse employees check stock instantaneously by moving through the facility with the app on his/her phone

●      The app alerts the employee if the product is stored at the wrong location or the wrong product is dispatched

The benefits of automatic track and trace

●      Saves time by conducting stock audits in minutes, instead of hours

●      Reduces human errors

●      Decreases incorrect dispatches

●      Eliminates the need for barcode scanners and RFID readers

As most enterprises today outsource logistics to specialized firms, it becomes hard to ensure visibility and collaboration in the supply chain. The good news is, these challenges can be solved by those logistics partners that are equipped with advanced technologies. H&S’ blockchain and IoT-enabled supply chain solutions are the right fit for those enterprises that want to reap the benefits of 4.5PL without compromising time, security, and quality.

Source:

●      https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/technology/lu-blockchain-internet-things-supply-chain-traceability.pdf

●      https://blogs.oracle.com/profit/the-benefits-of-iot-and-blockchain-for-the-supply-chain

●      https://www.iotworldtoday.com/2020/01/11/supply-chain-iot-needs-blockchain-to-fully-mature/

●      https://businessblockchainhq.com/business-blockchain-news/blockchain-is-the-future-of-supply-chain-iot/