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Logistics has undergone a transformative change in the last ten years, thanks to innovative technologies such as artificial intelligence, neural networks, and machine learning. It’s an industry shift drawn from the demand to increase delivery times, make products cheaper, and improve the way companies interact with the environment. The largest problems faced by supply chain managers, however, have remained consistent over the last few decades. Supply chains face an array of local and global public policy challenges such as:
But even though professionals already know all about these industry pitfalls, it has only recently become common to try managing so many of these challenges at the same time. This fact, along with increasing consumer demands, could define the new normal for supply management, says Shay Scott, executive director of the Global Supply Chain Institute at the University of Tennessee, Knoxville’s, Haslam College of Business. How to cope with the new normal? Innovations, like end-to-end supply chain automation and multi-dimensional systems, help organizations address contemporary problems with modern strategies. Below, we’ll outline emerging technologies in supply chain management, how they’re incorporated into existing businesses, and the extent to which they will affect supply chains in the future. Top trends in supply chain technologyFor decades, the highest achievement in supply chain management was the ability to cut costs. Today, this goal is joined with customer satisfaction, efficiency, and sustainability. Ethical behavior plays a big part in the strategic supply chain management decision-making process. So while cost-reduction remains a priority, it no longer automatically equals victory. According to Professor Scott — a leading expert in the evolution of supply chain management — supply chain assets are integrated. Professor Scott teaches that modern-day supply chains “must not only deliver customer value profitability but also work almost every area of the business to do so—customers, suppliers, sales and marketing, finance, and senior leadership.” Supply chain managers have to innovate in every facet of the end-to-end journey. To do this successfully, supply chain leaders must do the following:
Staying competitive in supply chain management requires adopting the most advanced technology. Mary Long, director of the Supply Chain Forum, says, “It takes an understanding in knowing what to go after to create supply chain efficiencies.” Enterprises such as the Kraft Heinz Company (the third-largest food and beverage company in North America) and McCormick & Co. (Baltimore-based maker of spices and seasonings) invest in technology to create efficient, sustainable, and socially responsible supply chains. Both companies are designated as a “Shipper of Choice” by FreightWaves, an award that ranks the “industry’s most innovative and/or disruptive companies.” Here are some of the emerging technological trends, tools, and innovations used in supply chain management: Big data. Massive amounts of data are generated every single day. Each minute, 4.5 million searches are entered in Google, 18.1 million text messages are delivered, and 188 million emails are sent. Mobile devices such as wearables, smartphones, and tablets generate a significant amount of the total data usage each day. With so much information at our disposal, it takes complex computing techniques to gather, sort, clean, and analyze such large data sets. Data science and analytics allow companies to use data to gain valuable insights and revolutionize supply chain management. Big data brings value and assistance to the following areas in supply chain management:
Artificial intelligence and machine learning. AI and machine learning create fully- or semi-automated processes and procedures for supply chain optimization. Optimization improves forecasting, planning, implementation, and maintenance in logistics by using AI and machine learning to emulate human performance and knowledge. AI and machine learning boost the end-to-end supply chain by:
Internet of things (IoT). The IoT — the streamlined connection across various devices — increases visibility and connectivity, while also reducing costs. Wearables and mobile devices like Apple Watches, Fitbits, and smartphones, are especially useful in warehouse settings. Wearables, in particular, provide solutions that lead to having a “touchless” supply chain: the total elimination of the labor-intensive selection of items from inventory to fulfill a customer order, also known as “picking.” Other IoTs allow warehouse and logistics managers to securely track inventory and monitor equipment. Other benefits include:
5Gs. According to Qualcomm, 5G is foundational to further innovation, which is certainly the case when it comes to supply chain management. Gaining real-time data is difficult when suppliers lack connectivity. Supply chain visibility becomes spotty without 5G. And third-party logistics is made possible through the use of 5G because it elevates mobile networks through multi-Gbps peak rates, ultra-low latency, and massive data capacity. High-level performance, increased efficiency, and new user experiences become available when 5G interconnects people, machines, objects, and devices. 5G further offers the power to:
The Cloud. At any point during the end-to-end supply chain, companies track materials and products, get real-time updates, and inform customers of the status of an order. This is all made possible with cloud computing. Cloud-based solutions enhance a number of areas such as data storage space, integration, security, and information sharing. Activities and processes are streamlined between multiple devices and an enterprise of software users. Advanced supply chain management software. Advanced software has disrupted the entire supply chain industry. In order to stay competitive, logistics companies continue to incorporate technology into their supply chain systems. Businesses feel compelled to track the latest technologies on the market because of consumer demands on cost and delivery speed, and the increasing popularity of customer rating metrics. As technology advances, supply chain software becomes more complex, allowing companies to stay ahead of mistakes, make modifications to orders, communicate across various media channels, and automate shipping. G2— a tech marketplace where businesses discover, review, and manage industry technology — lists the following supply chain management software companies and tools as some of the most popular in the industry:
Technologies predicted to impact supply chain management in the futureThe future of supply chain management will continue to include any emerging technologies which support efficiency and automation. Here are a few more software trends experts predict are in the pipeline:
Why the Executive MBA for Global Supply Chain at the University of Tennessee’s Haslam College of Business?There are a number of reasons to choose an Executive MBA for Global Supply Chain at the Haslam College of Business, including its modern, technology-focused curriculum. Haslam offers an industry-centered curriculum, led by expert faculty who are dedicated to the future of supply chain management. The University of Tennessee has been ranked #3 in the Top 25 North American Supply Chain University Graduate Programs by Gartner, and the Global Supply Chain Institute (GSCI) is a preeminent global hub for leading practitioners, academics, and students to learn, network, and connect with scholars and industry experts. Learn more about the GSCI and Haslam’s Executive MBA for Global Supply Chain today. How does culture influence supply chain management?There are behavioural implications of a culture of collectivism on supply chain integration decisions: they may drive location and partnering decisions and managerial actions. Understanding these implications can help managers and researchers identify how efficacy is related to national culture.
What are the new technology and emerging trends in supply chain management?This is what the future of supply chain management looks like.. Supply Chain Trend 1: Paperless Warehouses. ... . Supply Chain Trend 2: Hyper Automation. ... . Supply Chain Trend 3: Artificial Intelligence/Machine Learning. ... . Supply Chain Trend 4: Autonomous Trucking. ... . Supply Chain Trend 5: 5G.. How can we ensure successful management of the supply chain?5 Tips for Efficient Supply Chain Management. Find Dependable Suppliers. One cannot emphasize enough the importance of finding the right suppliers. ... . Invest in Employee Development. ... . Continuous Improvement. ... . Leverage New Technologies. ... . Improve Returns Management.. What are the emerging issues in supply chain management?Shorter delivery times. Lower shipping costs. Quicker response to demand changes.. 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.. |