By Eugene Panfilov
The entire logistics, transportation and supply chain process—starting with sourcing raw materials to reaching the products to the consumers’ hands—is undergoing a sea change at the moment. The various segments involved in the process have been witnessing advancements over the past decade, but the pandemic has further accelerated the growth.
With smart technologies, such as AI, ML, IoT, Blockchain and so on, present supply chain management has changed into a full-stack automation system. The new supply chain model with the fourth industrial revolution uses these advanced technologies to improve connectivity, carry out analytics, automate tracking processes and optimize resources with accuracy. Companies failing to overhaul their supply chain ecosystem are already at a great disadvantage and this will grow in the coming days if they do not adopt the changes soon.
The New Normal
The sooner all of us understand that the current scenario is the ‘new normal’ and there is no going back to the good old days, it will help everyone in the current seriously ailing supply chain operations. The most important change is new consumer expectations, which are all about fast and low-cost delivery right to the consumer’s doorstep. A survey report reveals that more than 60% Americans say they are making online orders instead of weekly grocery shopping and more and more customers are exploring new online retailers to fill their carts and order items, such as health, as well as pet supplies. This scenario is not too different in India or any other country for that matter—customers want to buy online. The options are unlimited at no extra cost and retail therapy is good for health, too! Knowing and recognizing this is of the utmost importance.
Smart Tech
Smart technologies, such as AI, have become an inherent part of the logistics and supply chain industry, helping with advanced transportation, smart route mapping and much more. AI is bringing in such changes as automated warehousing systems and sustainable solutions, among others. Moreover, technologies like AR and VR will help with human intelligence, such as complete supply chain planning, responsibility, flexibility and customer loyalty, while securing the entire process. This integration will reduce labour intensity, save time and costs and speed up the process.
A lot of benefits can be achieved through digitization. With customers at the center, manufacturers—along with supply chain players—must explore the trends so that customers’ buying experience improves in the digital world. These smart technologies can accelerate the upgradation process of supply chain and gain a competitive edge. The technologies with connected sensors will collect data that can help with product development and also the supply chain management system.
Cloud Solutions
Besides, Cloud-based solutions will be the next big thing for successful supply chain management. The old and localized supply chain model will no longer suffice. Businesses wanting accurate, adaptable and easily available solutions to remain competitive must adopt the latest digital transformation trends. And SaaS approaches are not only perfect for improved supply chain systems but are effective, too. SaaS is also secure and dependable. It helps companies supply chain firms access data at any time and from any location because the data is stored in the Cloud.
Visibility
With online shopping becoming the norm, customer demand for real-time information has become very significant. So, nowadays, supply chain companies are integrating improved visibility solutions into their systems. This is where the Radio Frequency Identification (RFID) technology is helping them track products in real time. Visibility—or the capacity to track goods from the manufacturer to processing facilities to end-users—is a factor that is vital to the supply chain ecosystem. To strengthen the supply chain as a whole, more visibility enables supply chain players to better understand the overall state, along with the position of each link. It also ensures that all stakeholders, including customers, have easy access to data.
So, logistics firms are using technology to allow companies use real-time information, such as traffic movement, weather updates and road conditions, among others. This data helps companies act accordingly and optimize routes or redirect their supplies.
IoT devices also allow logistics companies to track vehicles and inventory and so on effectively. Besides, these sensors are also important in helping monitor shipments to improve efficiency and visibility. So, logistics companies, big and small, are teaming up with IoT startups to include visibility.
Flexibility
Today, customers want goods delivered to them with a supply chain model that surpasses their expectations. This has led to the idea of ‘business to everyone’, an important aspect of the new supply chain system. This is likely to change into an arrangement where companies can use supply chain vendors for a wide range of capabilities. This will allow them to deliver to all types of customers and to any location. For this kind of flexibility, companies either have to create or buy solutions.
Conclusion
India’s supply chain logistics is improving, but it still has plenty of barriers before it can be at par with international logistics performance. Additionally, with each company having different supply chain goals, supply chain management firms should have forward-thinking leaders and a talented workforce to overcome the poor state of the present supply chain system.
(The authore is Eugene Panfilov, General Manager, Borzo, India & Brazil, and the views expressed in this article are his own)
