Digital Transformation Trends within Supply Chain

Digital Transformation Trends within Supply Chain
by Melissa Freeland, Director of Supply Chain, Radienz Living

The recent global crisis, otherwise known as the COVID-19 pandemic, has highlighted the significance of the Supply Chain industry worldwide. The challenges faced (and are still facing) brought the network to its knees, while at the same time drove a spotlight on the importance, not just to the company but to the global economy. Researchers have warned us in the past that we must be prepared for such a title wave, and the events of 2020 highlighted that we were ill-prepared to manage such a turbulent time. 

How will the Supply Chain industry answer the call of duty to ensure we are prepared for another possible crisis?
A few technology trends are on the horizon to do just that.

AI

If you haven’t heard of artificial intelligence yet, then you’ve been living under a rock. AI has risen in prominence in the past several years as the need for automation becomes more pressing. The effects from the pandemic have highlighted the need for more robust automation using algorithm-driven tools to provide quicker, more reliable data analytics, which can be beneficial for standard operations. AI allows the assurance of no human error and the ability to pivot the work force toward vigorous tasks where AI cannot be implemented. It also opens the door for more agile and dynamic KPI’s, metrics, and insights - allowing the organization to evaluate patterns and make quicker, more informed business decisions.

IoT

The Internet of Things involves wireless connections that transmit data between entities. Some insights on where and how this technology can be used: In manufacturing, we see the installation of sensors into machinery. These sensors provide data that allow the ability to understand when maintenance or replacements will be necessary. This allows for more proactive supply capabilities from a manufacturing, shipment and logistical perspective. 

In Logistics, sensors are being used in tracking containers and trucks. This allows the ability to track shipments and deliveries in real time, allowing the scheduling of receiving at warehouses all the way down to providing delivery updates to the consumer’s house. Embedded within this technology comes the ability to use data to evaluate delivery performance. This allows organizations to understand service levels and identify where opportunities lie for improvements. 

Blockchain

Another rising star in the technology realm, blockchain is a method of recording transactions via digital ledger. It is more difficult and in many ways impermeable to hack versus cloud storage. Blockchain allows expediency and improved end-to-end data transparency within the Supply Chain network. This is an important benefit with regard to data share at the global level.

Bringing It All Together

The integration of these technologies across multiple platforms will be another trend we’ll see in the coming months and years. These three noted above are just a few of the more notable and are expected to bring an expanded level of improved activities within the Supply Chain network worldwide. The ability for the industry to see improved data communication and transmission, less human error, identification and evaluation of performance levels with the ultimate goal of improved service levels will be beneficial in moving the industry forward in helping to manage through the next big crisis.

About the Author - Melissa Freeland

Melissa Freeland. 

About Radienz Living