From the first assembly lines to today’s advanced robotic solutions, the supply chain process is constantly evolving. The latest trends in supply chain and logistics focus on smart, tech-driven management to reduce operating expenses and increase efficiency. Hence, let’s look into some key trends expected to affect the shape and development of supply chain practices in the future.
Supply Chain Digitization
Digitization is the process of using the latest tech solutions together with other physical and digital assets to redesign logistics practices. Digitization improves the speed, dynamics and resiliency of the supply chain operations, leading to greater customer responsiveness and ultimately higher revenue. By embracing digitalization, companies can experience real value, increased revenue and market valuation. In order to reap the full benefits of digitalization, companies must fundamentally redesign their supply chain strategy. It’s not enough to just embellish it with digital technology.
Stronger Collaboration in The Supply Chain Process
Solid procurement practices and stronger relationships with suppliers should be considered a priority in the supply chain process. For instance, the procurement department can utilize the business data on suppliers to enhance supply chain decisions, such as supplier evaluation and recommendations of the best business partners.
Circular Supply Chain
The term “linear supply chain” refers to the conventional concept where goods flow linearly (from raw material to finished product). Modern logistics practices focus on the circular supply chain concept, involving the use of previously used products as raw materials. The reuse of products and materials is known as reverse logistics, and it is a novel, innovative approach. It helps companies reduce administrative and transportation costs, achieve higher sustainability, better customer service and loyalty, create value and conserve resources.
Enhanced Supply Chain Visibility
Supply chain visibility gives insight into what’s happening at each point of the supply chain. It’s extremely important for the efficiency of the entire supply chain process, including procurement, manufacturing, transport and delivery. One of the benefits of improved chain visibility is real-time inventory management. It involves the use of mobile point-of-sale systems and sensors, and takes inventory management to a whole new level.
To address customer needs in the best possible way, companies should segment them into groups. These groups can be based on what triggers customer purchasing decisions, as opposed to a broad generalization. By implementing a more direct-to-consumer business model and adapting their supply chain strategy to each customer and product, companies can significantly increase their revenue