With advances in technology influencing supply chains in a large variety of ways, it’s worth knowing just what those technologies are and how they are generating change.
Business fields of all kinds are in the midst of a great transformation driven primarily by technology. As such, technological innovations are coming fast and heavy and companies are having to adapt to them at a rapid pace to keep up. It’s no different for supply chain companies. Technological advancements are reshaping the way supply chains operate. With that being the case, it’s critical that companies keep track of them in order to stay competitive.
A McKinsey article pointed this out, stating,
For all the effort that companies devote to improving the performance of their supply chains, relatively few have unlocked the full potential of digital technologies.
This week’s article by Morai Logistics pinpoints 5 technologies that are having a significant impact on supply chains today.
Artificial Intelligence (AI)
AI is perhaps the most talked about technological innovation in supply chains and elsewhere. And for good reason. It is having an impact on supply chains in a variety of ways already and that impact is set to grow. It can be used for forecasting internally and externally.
This means AI can track the state of inventory, the health of machinery, have the latest information about weather patterns or conditions, and much more. Moreover, in a time when data and the insights that can be gleaned from it are paramount, AI can analyze that data and provide precise recommendations based off it.
The Internet of Things (IoT)
IoT is soon to be responsible for over a trillion dollars in spending annually around the world. In turn, as devices that can connect to the internet grow more developed, the need for them by businesses will also grow. With that said, in the world of supply chains, IoT is making its presence felt. It can link operations, assist the effectiveness of automated processes, and make real-time tracking of products easier.
Thus, whether it be live security cameras or real-time trackers on merchandise, IoT has a lot to offer supply chains. Through IoT, supply chains have the potential to be more transparent and encourage stronger relationships between businesses and clients.
Blockchain technology, with each passing year, becomes more inextricably linked to supply chains. There are several reasons for this. For one, blockchain meets the strong demand for transparency in supply chains. By being able to follow the product on its journey through the supply chain and validate its movement each step of the way, blockchain ensures clarity to the process.
Additionally, blockchain also affords supply chains security, as it has no central authority, has immutable data, and allows for real-time tracking. Finally, blockchain also helps drive down costs since it gets rid of middlemen and speeds up product movement.
Cloud-based supply chains are proving to have a number of advantages over traditional supply chains. Firstly, they make supply chains more efficient by making the most out of automation and data, reducing waste. Second of all, clouds allow for seamless scalability, avoiding the headache of antiquated operational expansions. In addition to that, scalability also means supply chains become more cost-effective as they grow. Since the expansions themselves no longer add costs.
The incredible increase in internet speed 5G is set to bring with it will enhance supply chains considerably. Consequentially, all the previous technologies mentioned here are dependent to some degree or another on the internet. Furthermore, in many cases, such as with real-time tracking and visibility or data collection, faster internet means better performance. Thus, rather simply, 5G will be a big leap forward for supply chain companies, as it will allow them to achieve many of the outcomes they want faster and more effectively.