Supply chain technology is a difficult, exhilarating topic to cover in detail. The supply chain technology stack comprises hundreds, if not thousands, of individual technologies, and considering the growth of the Internet of things (IoT), there really is no limit to how much these trans-formative supply chain technologies may expand within the next 12 months. We need to focus on several key supply chain technology implementations or considerations which will impact consumer spending habits, consumer-business interactions and performance measurement.
Companies Will Levy the
Power of 3PL Based Technologies
Third-party logistics providers (3PLs) have been around for several
years, such as our very own transportation management system, many supply chain
managers are still implementing in-house technology solutions that have severe
capability limitations. 2018 will be the year in which more companies choose to
leverage the power of 3PL-based technologies, including TMS, but also other trans-formative supply chain technologies like a Warehouse
Management System, a Yard Management System, a Labor Management System, all
integrated together via API's connected to the cloud with added extensions to
handle automated cycle-counting or network optimization. While most brands have
already integrated live system tracking, secure data exchange processes, and
visibility and trace-ability throughout systems, the use of cloud-based
technologies will begin to have a major impact on procurement processes as well.
Supply Chains Will take
Advantage of Trans-formative Supply Chain Technologies, like Freight Sharing
Apps
Supply chains will begin taking advantage of disruptive technologies
too. The dawn of drone delivery, having much hype over the last few years, is
quickly approaching critical mass. Smart glasses are providing manufacturers
and supply chain partners with information without the need to handle bulky
order processing systems thru augmented & virtual reality, known as mixed
reality, and the use of freight matching apps for full truckload moves are
giving supply chain managers more ways to accomplish more without spending
more.
It sounds confusing, but these transformative supply chain technologies
tend to generate growth and increased profitability when used across a global
scale by enterprises with complex supply chains or even domestic companies
looking to gain efficiency which in turn leads to bottom line savings. Since
these technologies, as adoption rates increase across the board, will allow
those who fully adopt them to get out of the weeds of tactics and process, more
businesses will then utilize the strategic mindset afforded by implementing
transformative supply chain technologies to increasingly set services and
products apart, pivoting to a mantra of increasing customer experience.
Due to this focus on the customer, consumers will reward those who have
taken the leap into supply chain technology implementation by making more
purchases, thus increasing revenues. As a result of the increased demand in
transformative supply chain technologies, service providers who either offer
the technology themselves or perhaps work as a consultant to help supply chains
implement these technologies properly, will need to step of their game to meet
the desired outcomes of a fresh batch of new customers. Finally, supply chains
who fully implemented and utilizing these technologies, will have a much
stronger competitive advantage above companies that have not yet invested in
such technologies as well.
Supply Chains Will
Transform, Increasing Capacity of Production & Customer Experience Thanks
to Trans-formative Supply Chain Technologies
How companies interact with consumers will evolve throughout 2018 thanks
to these trans-formative supply chain technologies. Artificial intelligence (AI)
can help consumers make decisions, and virtual reality has the promise of
revolutionizing how companies design, develop, and produce products.
This fundamental shift will result in increased
competitive advantage among companies that use disruptive technologies, and
cross-platform systems will rise to make existing disruptive technologies
compatible with new and legacy systems. This will create immersive experiences and enable the creation of digital
twins for existing products, services and systems. Imagine a digital world that
mirrors the real world. This gives developers and supply chain partners an
opportunity to experiment with different scenarios and select the solution that
will net the greatest savings and increase profitability. As a result, supply
chains will enjoy an increase in capacity to deliver and meet all desired company
outcomes.
Use of AI Will Increase
An increased ability to use AI will result in greater use of AI. It is a
self-fulfilling prophecy, but not the dark images that come
from Terminator. AI includes machine learning and deep learning,
allowing machines to self-optimize performance and alert managers of potential
failures or issues before they occur. Moreover, this will result in the hiring
of AI experts and a Chief AI Officer.
The use of AI will lead to better responsiveness by customer service
representatives, and since the technology hinges on automation, order accuracy
will increase, which will enable better spend analysis and cost reductions
through newer, more advanced analytics. Since up to 79 percent of supply chain managers surveyed cited cost reductions
as a top area of concern, investments in and use of AI will increase.
Conversational Platforms
Will Drive Supply Chain Collaboration
SCM leaders will start working with conversational platforms
in 2018 with greater vigor. Workers will interact with systems by voice, and
this technology will make its way to consumer-facing areas, including online
shopping environments, brick-and-mortar stores and everywhere else.
About Logistics?
While trans-formative supply chain technologies within the supply chain
are exciting, they do not yet answer a basic question; how will they impact how
consumers receive products? The answers to that question lie in understanding
how logistics will evolve over the next year. It’s easy to assume logistics is
simply freighting, but it includes inbound and outbound processes, order
fulfillment, performance measurement, compliance with regulations and more.
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