Trends of Supply Chain & Modern Lifestyle
The best companies around the world are discovering a powerful new source of competitive advantage. It’s called supply-chain management and it encompasses all of those integrated activities that bring product to market and create satisfied customers.
Within the organisation, the supply chain refers to a wide range of functional areas. These include Supply Chain Management-related activities such as inbound and outbound transportation, warehousing, and inventory control. Sourcing, procurement, and supply management fall under the supply-chain umbrella, too. Forecasting, production planning and scheduling, order processing, and customer service all are part of the process as well.
Importantly, As we head into a new year it is a good time to take a look at the coming year and see what it may hold in the way of trends. Accordingly, the trend toward greater use of supply chain technologies is on a clear path forward. The four technologies expected to have the greatest competitive or disruptive impact in the next decade are: optimization tools, sensors and automatic identification, robotics and automation, and predictive analytics.
Bill Gates who famously quipped:
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency”
The future for Supply Chain Management looks very bright. This year, as well as last year, two major trends are benefiting Supply Chain Management operations. These are
· Customer service focus
· Information technology
Successful organizations must be excellent in both of these areas, so the importance of Supply Chain Management and the tools available to do the job right will continue to expand.
The Following are Some Supply Chain Management Trends that Surely to Change SCM as we know it Forever:
1. Supply Chains will Look to Go Digital:
In today’s global and connected economy, digital supply chains are the on-ramp to innovation and success. And if you want to be among the winners, you need to get on the highway and go fast. Start today by re-imagining your supply chain. Develop digital strategies that allow you to proactively evolve ahead of the competition. Employ comprehensive solutions that support the entire source-to-settle process and create value for all parties involved in it.
2. Responding to Innovation & Change But with An Eye On Fundamentals:
The greatest barrier to the adoption of these technologies is a lack of understanding of the benefits combined with an expectation of high implementation costs. The ability to accept innovations and take advantage of the synergy effects of individual movements is a core competence of future-oriented companies.
3. Supply Chain Visibility:
Supply chain visibility remains at the top of the list as a key area. Interestingly, as the supply chain gets more technologically robust, supply chain visibility is more and more a requirement by both providers of services and those running supply chains. Transparent supply chain management and effective supply chain visibility is a critical tool in a company’s continued growth and successful brand image.
The business landscape is rapidly becoming more global. Largely due to improvements in communications, globalization is dramatically impacting the way business is managed and transacted, even on the most local levels. No area of a business is affected more by the trend to a global business environment than the supply chain.
5. Cloud Computing Continues to Increase In Use:
Cloud technology has been around for almost 20 years, supply chain professionals are relatively hesitant to migrate their systems. Though the industry’s move to cloud computing is still in its youth, cloud technology makes a lot of sense for supply chain managers. Computing in the cloud makes it possible to closely track a product throughout its life cycle. Cloud based supply management can also significantly cut down on lost product as it can locate a shipment during any stage of transport. And it enables you to make quick decisions and communicate effectively if you need to reroute a misdirected shipment.