Importance of Leveraging New Supply Chain Technologies

According to WTO, global merchandise trade in 2020 fell by 13% to 32% due to the Covid-19 crisis and disruptions. The biggest impact was on North American and Asian economies, and much of it can be put down to the massive global disruption of long-established supply chains.

Existing supply chains were always susceptible to disruptions and had in the past, floundered in the face of geopolitical changes and natural disasters. However, Covid-19 exposed their inherent weaknesses to a deeper level and in a more sustained manner. The resulting loss of revenue, customer churn, and diminished market value have forced organizations across the globe to rethink their existing supply chain models. This has created a pressing need for organizations to adopt next-gen supply chain technologies to ensure business continuity in the face of global disruptive events.

Organizations are increasingly focusing on rebuilding their supply chains to be more robust and resilient versions of their past structures. The aim is to be future-ready and shockproof to survive and thrive in the future. For this reinvention, next-gen supply chain technologies have emerged as a key focus area. Some of these are future-proof supply chain technologies are –

AI and Big Data Analytics

Real-time visibility through advanced data analysis provides Chief Supply Chain Officers (CSCOs) with the ability and the time to respond to sudden changes such as a pandemic or a natural disaster. These AI and data-based models were battle-tested during the national lockdown in Italy when organizations could see massive jumps in retail sales as well as anticipate demand and adjust production in real-time.

IoT

IoT has emerged as another crucial future proof supply chain technology. With IoT-enabled sensors, supply chain managers can track shipments in real-time and monitor storage conditions remotely. These two features have led to massive improvements in assessing shipment delivery information, better warehouse planning, and risk mitigation. All these factors ultimately lead to enhanced customer satisfaction all around!

Blockchain, robotics, and automation are the other upcoming future proof supply chain technologies that have the potential to make next-gen supply chain resilient. Blockchain brings enhanced transparency and trust by providing real-time traceability of load, smart contracts, and fraud detection in the supply chain ecosystem.

Another layer of business benefits such as cost reduction and enhanced efficiency is brought into the system by leveraging technologies such as robotics and automation, which streamline and accelerate tasks and processes by reducing dependencies on manual efforts.

After the COVID-19 pandemic organizations can no longer ignore the weaknesses and loopholes in their existing processes and systems. And to avoid reliving the disruptions of 2020, they must create a sustainable, future-ready business model. Leveraging next-gen supply chain technologies is the fastest and most sustainable way to achieve the needed transformation.