What are the implications for the future Supply Chain Management?
Supply Chain and Retail operations are experiencing unparalleled changes among all companies throughout the globe. They are coping with changes in the business process, innovating technology, digitalisation and the related implications for the future of Supply Chain Management (SCM). Experts recommend a business and technology re-engineering for bridging the gap in the coming years. If you see these changes as an opportunity and adapt to them, you will survive.
What is triggering these changes?
The trends and characteristics that will prevail across all functions of SCM and which are affecting product variety, fulfilment options, customer-demand satisfaction, transportation, warehouse management, category management, retail operations, engagement; and all these have to be done at the lowest possible cost!
Disruptive technologies that could significantly impact the Supply Chain Management processes, and which are intricately linked to generate the data needed for SC optimisation:
Information technology, like analytical innovation, Cloud computing, big data, and cognitive analytics to obtain, stockpile, evaluates, and gain insights from data, distributing and collecting data generated by the Internet of Things (IoT).
Physical innovation, such as drones and driverless vehicles, robotics, smart glasses/augmented reality, and 3-D printing.
Top trends and technologies for the next decade:
• Strategy-driven value chains.
• Customer-centric Supply Chain.
• The alliance of cross-collaborative teams from different areas.
• Shortages of vital raw materials, and fluctuating prices.
• Highlight Supply Chain security.
• To achieving higher-service quality.
• Long-term goals, business strategies and planning to achieve a top SCM.
• Reduce the cost of purchased goods/services" and to reduce internal costs.Achieve consistent cost savings from suppliers and ensure continuity of supply.
• Achieve the desired level of standardisation in their products and processes.
• Align supply management strategy with overall company goals.
• To highlight the sharing of information and listening to new ideas across divisions.
• There will be a lack of talent in the Supply Chain.
• Skillset when hiring should change.
• The increasing importance of cross-functional alignment of supply professionals.
• Government policies will become severer concerning clean-sustainable companies.
• Human/robot connection to enhance collaborative work.
MORE DEVELOPED TECHNOLOGY:
The Internet of Things (Iota) and the Digitisation of everything.
Automotive assessment.
Data science Analytics.
More advanced Machine Learning and Artificial Intelligence.
Digital Hub, Apps
Cloud and web-scale IT.
Improved Autonomous Mobile Robots (AMR) that might cut labour costs.
Technology advancements in 3-D printing and real-time IT tools.
More automated warehouses.
A more developed Industry 4.0
Blockchain will be still in the process of full-growing.
However, these transformations might also highlight a potential opportunity for Supply Chain professionals, because they play a crucial role across the organisation. Supply professionals are perhaps the best qualified to integrate different divisions within their companies, capable of offering highly-educational programs in their enterprises, especially in Digital Supply Chain and customer-centric approaches.
CONCLUSIONS: We have never seen how disruptive technologies could significantly strike the Supply Chain. However, new and emerging technologies could generate numerous new jobs and hundreds of billions of dollars for the economy over the next ten years. Supply Chain leaders must innovate and invest in new technologies to improve their processes and stand out from their competitors, generating greater customer satisfaction, sustainability, stronger brand awareness, and better employee engagement. Be prepared to take the challenge!
Dave Food
