With 2016 having ended and the New Year begun, let us look back at some of the trends that were seen in the supply chain industry. This industry has continually evolved to put up with the changing needs of the companies to meet customer demands. If you wish to get all your logistics, warehousing and other related requirements fulfilled in the best and most efficient way possible with upgraded technologies to meet the continually evolving nature of the industry, you need to join hands with experienced professionals who are experts in the field. One such name is Jayem Logistics who is known to be the best supply chain company in India today. Understanding how different factors affect the supply chain industry remains a top priority that helps to recognize the advancing capabilities of today’s technologies. Listed below are some of the major trends that were seen in 2016 to improve on the implementation of the supply chain processes.
Agile supply chain
High flexibility to be able to quickly adapt to changing situations is what was seen in the supply chain industry in 2016. These changes could be related to technologies, economy swings and customer demands. An agile supply chain uses flexibility, responsiveness and competency to help organizations to quickly adjust their sourcing, logistics and sales. It uses real-time data and updated information to leverage the operations as per the demand forecast that in turn improves the efficiency and productivity of the processes. Potential shortages and excessively stocked inventory were also eliminated in an agile supply chain. As compared to lean supply chain processes that improved efficiency while limiting variability and adaptability, agile methodologies allowed for quicker and the best decisions to be taken under any circumstances. The main goal of an agile supply chain is to detect disorders even before they occur and eliminate the issues at the earliest.
The supply chain industry saw an enhanced procurement capability, meaning obtaining raw materials needed to create a product. It focused on establishing new supplier-vendor relationships that helped manufacturers to adjust to changes in the availability of raw materials. However, enhanced procurement did result in major costs that rose to almost 70% of the total costs related to supply chain; and to put down these costs, additional resources were needed. Collaboration is one vital element that helped overcome challenges related to procurement and logistics by creating a common ground for these operations. This is because when all the processes of a company’s logistics are collaborated, they ultimately result in reducing costs.
Artificial Intelligence (AI) is becoming one of the most well-recognized and popularly used technologies in various supply chain applications. Personal assistance was created in 2016 and today, personal assistants seem to be omnipresent. These include Google, Siri, Alexa, and Cortana. Although the controlling capacity for AI by humans is still far from real, but the concept did boost up the supply chain industry last year. And, the urge to create more of AI applications is only growing stronger day by day! More and more companies are taking advantage of AI through linked supply chains because supply chains that are linked together are more intelligent and responsive as compared to individual ones within a company. AI helps to optimize and make efficient all supply chain processes like logistics, inventory management, data analytics, etc. To add to that, AI also has the potential to change healthcare supply chains to a great extent, that is, it can help to improve patient outcomes and reduce delays.