If your company relies on supply chain management for its day-to-day operations, you know how much a supply chain can impact your bottom line. A disruption in the flow of goods can cause delays that can affect your entire network, and an inefficient transportation line can slowly erode the profitability of your otherwise successful business.
Fortunately, new technologies are beginning to emerge and change how we use and think about supply chain management. We're getting tools that make the supply chain more transparent, software that makes it easier to manage, and a user interface that makes supply chain management accessible to people at every stage of the process.
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Because even small changes in supply chain management have the potential to add up to big savings, it's worth spending time researching and potentially investing in these new technological advances.
Technologies to watch
Here are some of the new developments that are reshaping the way we think about supply chain management:
1. Internet of Things (IoT). IoT technology has been slowly changing supply chain management over the past few years. This technology uses small sensors, RFID and other high-tech markers to make it easier to track packages and vehicles. This is leading to more transparency throughout the process and, in some cases, more automated workflows. But since IoT is not yet used as an end-to-end solution, there is still plenty of room for growth.
2. Forecast analysis. Companies are investing in data collection and management, so they have access to more supply chain information than ever before. Predictive data analytics algorithms allow you to take this data and make intelligent predictions about the future needs of each node in the chain. In the near future, you can also make smart suggestions on how to optimize operations for profitability.
3. Autonomous vehicles. Autonomous vehicles may still seem like a distant future, but the reality is that autonomous truck technology already exists. Although capacity is currently limited, this technology is making it easier for human truck drivers to travel efficiently and on time. As this technology becomes more stable and predictable, it will have an even greater impact.
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4. Digital assistants and chatbots. Almost every new software platform emerging now has its own digital assistant or chatbot that can guide users through helpful questions and tutorials. This makes supply chain management software much more accessible and easy to learn for supply chain managers (as well as other staff members on staff). These technologies reduce errors and reduce the time required to manage key processes.
5. Chain of blocks. Although still in the early stages of its application to supply chain management, blockchain has great potential to revolutionize the industry. Using a distributed ledger can decentralize various elements of the supply chain, including supply chain transactions. Unfortunately, blockchain will require considerable time and development before it can be easily applied to supply chains.
6. Augmented Reality (AR). Imagine walking through a warehouse and instantly seeing which products are being marked for shipping and which need to be put into storage. This is the long-term vision of Augmented Reality (AR) for supply chain management. By using high-tech glasses or other wearable devices, workers can blur the line between their digital data management system and their physical environment.
7. Artificial Intelligence (AI). At every step of the process, and combined with every other technology on this list, is AI. Machine learning algorithms have the potential to automate even the most complex supply chain functions and can improve efficiency at every level. As AI becomes more widely available and easier to apply to different roles, it will have an even greater impact.
Setting future goals
Technology is already changing the way we manage our supply chain, but our most promising technologies, including AR, AI, and blockchain, will need years of development before they go mainstream. If you are a manager.
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