SIX Emerging Trends in Supply Chain Management to Learn
In a competitive business landscape, it is necessary to remain agile, responsive and practical. The supply chain is the backbone of the company’s functions as it makes sure materials or products are delivered to customers on time and within the estimated budget. Effective supply chain management reduces costs which include minimizing waste, and storage costs and taking control over the complete process.
It helps to avoid unnecessary labour costs with automated processes and allows companies to improve their customer service standards with the delivery of high-quality products. The best logistics and supply chain management colleges in Sivakasi provide the students with the knowledge of quality assurance, compliance purposes, managing issues and tracking the products from start to finish. Businesses now benefit from new technologies in the supply chain which provide new objectives and outlooks for the foreseeable future. Here are the emerging trends in supply chain management which help businesses to be successful in this competitive landscape.
6 Emerging Trends in Supply Chain Management that MBA professionals need to know:
Digitization: Business brings the bottom line with the creation of digital manufacturing ecosystems. You can see this trend in electronic supply chain management. Digital technologies include automation, artificial intelligence and digital supply chain twins. Some of the key benefits of digitization of the supply chain are:
- There is a reduction of supply chain disruptions when compared to the traditional approach from extensive use of labourers to materials.
- This improves efficiency and productivity with the integration of automation processes or workflows.
- It enhances inventory management with real-time tracking and reduces the risk of carrying too much inventory.
The use of artificial intelligence and automation is increasing where it reduces human inputs and machines help in completing a series of operations. There are several techniques which apply to AI and automation in regulating the workflows, enhancing the manufacturing line and implication of digital twin technologies. When the IoT devices provide real-time data then you can keep track of consumer orders for specific materials, production delays and alerts if any machines require immediate repair.
Focus on sustainability: Companies are now looking to reduce the environmental influence and also meet production needs and improve efficiency. This is possible through the integration of renewable energy sources, investing in efficient logistics networks and exploring green alternatives for packaging materials. The possible changes that the manufacturing unit can consider are,
- Switches from plastic to cardboard packaging
- Reduces carbon footprint
- In supply chain planning, sustainability is a part
- Establish carbon-neutral initiatives
Growth of circular supply chains: Traditional supply chain model replaced by circular supply chains. Now manufacturers are implementing the 3R model which means recycling, reusing and revised version discarded products. Today customers favour businesses with the choice of recycled materials for production and practice safe disposal. The circular supply chain model also supports sustainability efforts and provides economic benefits for your organization. Implementing circular supply chains, benefits are reduced storage, transportation and administration costs. With technological innovations, it is easy to know the current condition of products in real time. However, customers consider ethics when they shop including how, what and where production is located. Governments also set certain rules which limit trash and encourage recovery.
Integration of cloud-based solutions: Now most of the companies are supporting and implementing technology solutions for increasing operational efficiency. The second software-as-a-service model is beneficial for supply chain management. The efficiency of this cloud-based solution is crucial when your company is available or supports a global and digital supply chain. Organizations can take complete advantage of the latest technologies and innovations where there is no need for the necessary infrastructure.
Managing risks and resilience: This becomes prominent in the supply chain domain where organizations can manage risks and prevent troubles in the supply chain process. This is possible with the inclusion of processes like scenario planning, risk assessment and risk mitigation. Organizations focus on developing resilient supply chains which are better equipped to handle disruptions and unexpected events.
Intralogistics robots: To make the operations speed and capacity, intralogistics robots come in handy which increase warehouse automation, efficiency and management when demand surges. What are intralogistics robots? These are devices where it is operated separately, reprogrammed, multi-purposed, and programmable. It is highly used in restricted floor space or needs to reach into shelves, load or unload items which are intended for picking and putting.
To conclude, businesses are now required to stay ahead in their industry and implementing the latest supply chain tech trends in the company guarantees you to escape from challenges. Businesses are increasingly embracing a digital transformation which MBA professionals need to understand and be able to respond to the changing market conditions. The Best B schools in Sivakasi highlight that when a business leverages the above technologies and can escape from unforeseen interruptions which are usually present in the traditional approach.