Ongoing Trends in Supply Chain Industry!
The Covid-19 pandemic has not only destroyed the supply chain industry but also highlighted its importance and completely changed the outlook for years to come.
Here are the trends you should look out for in 2021:
Stronger Artificial Intelligence
Automation has seen an upward trend in almost all industries, and the trend is expected to continue in the coming years. Artificial Intelligence (AI), in particular, has emerged as the leading force for automation in the supply-chain industry. AI algorithms can automatically enact basic operations by utilizing data from past operations. This removes the chances of human error and saves a lot of time, and, in turn, increases the efficiency of the operations.
AI has tremendous potential. By identifying patterns in data, AI can deliver powerful insights, which can be very helpful. For instance, it can be used to predict future demands. AI can help make operations more accurate and efficient.
Rapid Adoption Of Blockchain
Despite some reservations, blockchain technology has proved its worth in numerous industries, particularly in the supply chain industry. Research shows that for the food and beverage industry alone, blockchain can help save a whopping $31 billion by 2024. It is expected that there will be a broader and more rapid adoption of blockchain across the supply chain in the near future.
The main use of blockchain has been to enhance transparency. Uncertainty in data sharing can cause adverse effects on the supply chain. Blockchain technology makes it possible to share data across the supply chain with all parties involved. The widespread acceptance of blockchain technology will encourage supply chains to be more transparent.
End To End IoT
The supply chain industry has also been increasingly adopting the internet of things (IoT). Similar to the blockchain, IoT also boosts transparency. Means of transportation such as trucks can be installed with GPS for real-time tracking. Sensors in the warehouse ensure visibility in inventory management, while in retail shops, they can help gauge demand. The advantage of IoT is that it can be utilized all across the supply chain.
Automation in SCM extends even to manual tasks. Robotic automatic during the first two quarters of 2019 saw a massive investment of $869 million in North America alone. Drones have been adopted to deliver lightweight products and goods. Driverless cars have not become a reality, but they will materialize sooner than later. In warehouses, wider adoption of autonomous mobile robots (AMRs) for intensive tasks is also expected.
The future of the supply chain industry looks very promising. By adopting the latest and most innovative technologies, the industry can take on challenges, and aid businesses attain better operational efficiency.