Supply Chain Management (SCM) technologies are becoming a key component of delivering digital business strategies, and rightly so.
It becomes imperative for us to understand what Supply Chain Management means before we try to keep up with the seamless way of Digital Supply Chain.
Here’s what Supply Chain Management (SCM) means:
Logistics industry and supply chain management is one of the largest industries in the world, comprising of 6 sectors – transportation of goods through road, rail, maritime & air, and storage and warehousing. This industry is one of the largest job creators and still needs the evolution of Digital Supply Chain to make things more cost effective and efficient. Digital Supply Chain is nothing but the conventional Supply chain model with the aid of digital technology like Global Positioning System (GPS), barcodes, and a few other sophisticated technologies.
Operating with the latest technology in Supply Chain is becoming critical to gain a competitive edge and boost profits in companies. In a recent study by McKinsey, only 2% of senior executives mentioned that the supply chain is a part of their digital strategies. However, the same study also suggested that companies can boost their annual growth of earnings by 3.2% – the largest boost by digitizing any business area.
With growing expectations from customers for personalized goods or same day delivery, supply chain management is only getting more complicated and complex. Fortunately, the evolving digital supply chain technologies help us tackle these challenges with ease. Here are a few such technologies:
Digital Supply Chain Technologies
- Internet of Things (IOT) – IOT makes products and people more connected, thus helping businesses in predictive analysis of customer needs based on real-time data
- Artificial Intelligence (AI) – Big data has taken the platform like never before in helping businesses draw insights through artificial intelligence and business analytics
- Blockchain – Blockchain is one of the latest and still evolving technology which promotes safe and secure online transactions that can be easily tracked
- Robotic Process Automation (RPA) – This helps businesses to automate processes that are done manually thus help in cutting costs and leaving room for minimal errors.
- Real-TimeActionable Data – With the help of technology, Radio Frequency Identification (RFID) chips or barcodes are attached to every product and can be traced anywhere in the world. This helps businesses to get real-time data to make actionable business decisions, hence accelerating supply chain performance.
The latest digital trends in supply chain management are numerous and their benefits to the business is humongous.
However, supply chain management trends and issues keep growing over time with customers’ demands and expectations increasing. Leveraging technology is the only way of being on top of the game.
Supply chain and logistics industry having started in the 19th century now becomes a multi-million-dollar business. Goods worth over $2 trillion dollars are transported between countries or within countries each year. Digital Supply chain is the only way that businesses can have a competitive edge and be profitable.
With the rise of virtual logistics teams across the world and last mile delivery driving innovation such as drone deliveries, we can say for certain that there is a digital transformation in the supply chain. It’s time you think about what new technology are you bringing in to make your supply chain model a profitable digital supply chain model.
Aanchal Iyer is the Digital Marketing Manager and a Content Strategist for Truckeze Logistics Solutions She has an experience of 11+ years and is actively involved in writing about the advancement of technologies in our everyday life.