Supply Chain management drastically changes over the period because of the increase in technology, access to data, and making availability across the network. The best five years will be too different from today’s product work. An industrial asset will be connected and collaboration of robots with the operator and worker in a better and safer way. Change is a weird thing apart from the existing one because all process gets distracted. Supply chain management is the main factor of the company. It is not having just a great process or service, it’s having a great customer experience, a customer wants choice, they want personalization. Every customer wants what they want, where they want, and when they want. It is just possible because of supply chain management but there are some future trends in Supply Chain Management which will take SCM to the next level.
Following are the 5 Future trends in supply chain management :
1) Digitization :
Digitization refers to the movement of a physical document such as Quotation, Purchase Order, Ledger, and records into the computer through a well-defined system. Digital gadgets to redesign application in supply chain management is a remains trend in the logistics industry. Digitization helps to minimize the error. The goal of Digitization is to get effective supply chain efficiency and transparency in the supply chain process.
2) Artificial Intelligence & Machine Learning :
Over the past year, world top companies in logistics integrate Artificial Intelligence for intelligent transportation and route planning. AI software decides Supply chain planning by anticipating potential disruption before they occur & designing original solutions similar to the human way of problem-solving. AI takes all data & converts into the forecast. This forecast can sense seasonal fluctuation in demand.
3) Robotic Process Automation :
Robotic Process Automation (RPA) is referred to as the involvement of small automated bots & software that will automate the system throughout the system. Automation is required in every sector because it eliminates labor work which tens to reduce risk and tends to go safely. Most of the company uses RPA develops sorting machine which can sort 36000 unit per hour. Drones are also used to deliver small items. The self-driving vehicle is one of the most trends in transportation. Due to automation in Supply Chain Management, it refers to increases in productivity & customer satisfaction & reduces the risk of injuries in the industry.
4) Internet of Things :
The Internet of Things is getting included in supply chain management in recent years. For instance, the sensor can be fitted in modes of transportation that provide live tracking and updates on shipping and delivery. Such Real-Time data is very important for a company to proactively services, customer demand, minimizing downtime which tends to get an increase in supply chain efficiency. Internet of Things authenticates the location of goods at any time, streamlines the movement of goods, and also monitored the storage condition of raw material.
5) Blockchain Technology :
The real-time tracking of products in the supply chain with the help of a blockchain helps to the reduction of the overall cost. Blockchain Technology can be used to stored data, manage expense statements, and Verification customers at the receiving end by BlockChain technology help to increase the transparency of every transaction and ensuring the security of the whole operation. Through Blockchain Technology companies gain a real-time ledger of transaction & movement of all participants in supply chain management in an increase in efficiency of Supply Cain Management.
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Bad Communication is Kryptonite for supply chain.