A lot of businesses are still at the beginning phase of their journey towards integrating technology in their supply chain. This could partly be because of history – sold companies goods and services using traditional means of linear value chains, and using antiquated infrastructure.
This makes it challenging to integrate digital initiatives. But as digital ecosystems comprising of better networks make it possible to share data in hybrid forms, it is no more an option not to take advantage of technology.
The best way to go about this is to identify the correct supply chain use cases that will give your organization a better advantage over your competitors.
Although supply chain is made up of various pieces, the most crucial goal is to get goods to customers quickly. The expectations of customers are not going to diminish; they will only get stronger.
It can be complicated getting products from one point to the other – various partners are involved at every stage, and they might be spread across multiple locations, making it possible for global events to put logistics into turmoil.
Due to this complexity, JD Edwards Managed Services can help businesses take advantage of new technologies so as they can improve.
The traditional methods of doing things in the supply chain industry are slowly being replaced by innovative ones.
Most of these innovation features emerging technologies like the internet of things, business networks, blockchain, machine learning, and artificial intelligence. All these technologies can be used to drive efficiencies, support strategic decisions, and optimize processes.
They are changing the supply chain management techniques by the following means.
1. Providing better visibility
An important consideration for any business owner is how they can enhance the visibility of their products and services, wherever they may be located. With so many networks, it can be challenging to keep track of all areas of business operations. It is essential to have data so as you can maintain some level of control and provide adequately respond to problems.
Technology makes it possible to connect devices so as they can provide a source of information that can be tapped into. Such data can be shared real-time from other tools, making it stay accurate and providing a real picture of what is happening. If for example, there was a disruption of transportation because of bad weather, it is possible to see the exact place where spare inventory are located so they can be moved. It will also be possible to maintain the real delivery time or update the client on when the goods will be delivered.
2. Better predictions
Supply chain management has benefited from emerging technology by making it possible to predict what could happen in the future so that companies can be proactive. When they make use of predictive analytics, they can be sure of meeting demands or cutting costs. A manufacturer, for instance, can predict demand by using historical data.
This may be ad hoc or seasonal based on weather conditions, for example. By having the proper systems, it is possible to tell if there are enough inventories in the warehouse to meet the demand. If not, orders can automatically be adjusted to get raw materials required to achieve the anticipated demand.
Such analytics provide a broad picture for companies to use to make sure they don’t end up having lots of stock in their warehouses if market drops.
3. Efficient traceability
Today, customers are more aware of the impact of their purchasing decisions from an environmental and social point of view.
Therefore, if companies are not committed to practices that are ethical and sustainable, this may influence the buying decisions of customers. With the growth of the supply chain during to emerging technologies, it is now easier to keep track of goods and to get more transparency to make sure all those involved comply with the required ethics.
Although partners need to establish a particular amount of trust, technology is slowly being used to assist in tracing the journey of products from the start to the final destination. Every product is given a code, ensuring that both companies and customers view its details.
This ultimately provides trust and can hold businesses responsible for the sourcing and quality of goods.
In this fast-growing times, companies cannot afford to relax when it comes to making use of leading digital trends for their supply chains. No matter the technology you choose to integrate into your supply chain, you will need to consider how best they can be optimized.
Author BioChris Giarratana is the co-founder of StrategyBeam, an Orlando marketing agency, where he works with small businesses and nonprofits to achieve their goals. He helps drive conversions and boost sales through SEO marketing, Google AdWords management, and copywriting services.