The global pandemic exposed many weaknesses in supply chain management. Sadly, many companies today are still trying to recover from the problems seen during that period. They have gone from one extreme to another, choosing to stockpile items rather than using lean principles to guide their supply chain decisions.
This has led to a significant increase in global inventories when many consumers are less inclined to spend. The use of technology helps build supply chain resilience, so companies find the right balance once again. How can this technology be of help?
Artificial Intelligence
Supply chains amass data in copious amounts. This data is only beneficial if companies can learn from it. One of the functions of Supply Chain software is to pull insights from the data. The program takes large data sets and transforms the information into actionable steps and requires very little human input to do so. With the help of AI, a company can automate its warehouse, improve the time it takes to get goods into customers’ hands, and more.
Cloud Computing
Cloud computing works together with AI to improve business operations. It powers the automation process and helps in selecting suitable suppliers. Cloud computing also provides real-time data on items being delivered or shipped and analyzes carriers to see which ones are performing the best. The company can then use this information to make changes where needed. When AI and cloud computing come together, it’s easy for a company to see operational trends and areas of concern. Furthermore, the two systems work to improve the customer experience.
Blockchain
Companies need to know where their goods are at all times, and blockchain may help with this. It provides all parties in a transaction with a traceable audit trail, making it easy to identify fraud and counterfeit concerns. Blockchain can also identify which suppliers are most at risk and help a company comply with regulatory requirements. This increased transparency is appreciated by all.
The Internet of Things
The Internet of Things or IoT is of help in knowing where goods are at any moment. It is also of help when it comes to monitoring the weather and traffic and seeing how they may impact shipments. In 2020, Gartner reported that businesses making use of IoT in their supply chains saw a 30 percent increase in efficiency.
Composable Architecture
Most people are familiar with Legos today. They know how each block can be fitted with other blocks to build a structure. The same can be done with supply chain management. Using technology, a company can bring modular components together and assemble them so they are connected. When this configuration no longer meets the company’s needs, the components can be separated and reused. When new items are added, they can be automatically incorporated.
Increased Collaboration
Men and women learned new collaboration skills during the pandemic. People who would never use programs like Zoom quickly became proficient in them. Supply chain managers can use this technology to collaborate with suppliers, partners, and more. Using a permission-based private network, for example, will allow the manager to share sensitive data confidentially.
In the future, the link between supply chain management and technology will strengthen. Tech-driven solutions are here to stay, so any business wishing to remain competitive must embrace them. Those organizations that do will see improvements in efficiency, customer satisfaction, and more.