2016 saw a continuing improvement in the use of digital technology in the supply chain industry. These technologies included Big Data, Analytics, Internet of Things, social media, and point-of-sale reporting. Soon, the digital transformation reached most supply chain organizations. The four main drivers of such change included supply chain visibility platforms and tools (94%), Big Data/Analytics (90%), simulation tools (81%), and Cloud (80%).
As per a research, 75% of executives recognize the digital supply chain as an important element for atleast the next five years. While, 70% also started implementing digital technologies for supply chain throughout their companies. However, 48% of executives still stuck to continued use of traditional technologies like phones, email, fax machines, and manual order entries.
Digital supply chain technologies are important to gain and maintain a competitive advantage over others in the industry. They can respond to changes in product demand accurately even across large distances and within small time frames. Innovation is important for improvemental change in today’s world. Supply chains are required to evolve to meet the increasing omnichannel sales. This is where these digital technologies are required to be integrated in the existing systems to maximize efficiency and productive value.
Another important element seen in 2016 was augmented reality, which seemed unlikely at first, but later proved to be one of the most successful features. Once customers identify how new technologies work along with their benefits, they are more likely to accept them. For example, newer generations are more likely to pick up mobile-based and tablet-based systems more easily because they have been using them effortlessly for various purposes. The same when given to older generations to use, will have a tough time dealing with the systems. Another example is the Virtual Reality (VR), which is built on augmented reality, combining both physical and digital worlds into one interactive environment. This technology is important to practically eliminate extensive training courses and to repair time requirements throughout the supply chain.
There are always some or the other destructive forces that hinder a company’s progress; and same goes for supply chain as well. However, if certain fundamental concepts are utilized, these hindrances can be responded to appropriately. These concepts include seeking the fastest and most cost-effective means of transporting products to customers with enhanced delivery options, working with more of warehouse optimization, crowd-sourced logistics and cloud-computing, expansion of global footprint, etc.
It is clear that technology highly dominated the supply chain industry in 2016 that led to multiple changes in their operations. Looking at all of this, we cannot imagine where this industry will be in the next five years! As per a survey, by the year 2020,
- 95% executives expect that more processes with suppliers will be automated.
- 94% executives expect that organizations will receive more real-time status updates from across the entire supply chain.
- 92% executives expect that organizations will use more data analytics to benchmark and evaluate suppliers’ performances.
To take up benefits of the latest technologies for the betterment of your business, you can get in touch with Jayem Logistics, the best supply chain company in India who deals with the latest technologies in every process from inventory management, warehousing and data storage to road transportation, freight forwarding and trading.