February 02, 2023 | Supply Chain Strategy
Supply chains have become increasingly complex in recent years, with new technologies and innovations. As a result, there’s a need for innovative strategies to manage them more efficiently and effectively and to build resiliency in supply chain operations. The main trends in supply chain management today are artificial intelligence and automation, supply chain as a service, circular supply chains, risk management and stability, and increased focus on sustainability.
The use of AI and automation is becoming increasingly common in the supply chain industry, mostly geared toward streamlining and optimizing the supply chain process, by automating mundane and repetitive tasks.
AI-based systems can also be used to identify and address potential issues in the supply chain such as delays, bottlenecks, and disruptions from unforeseen circumstances. These systems can also be used to improve the accuracy and speed of inventory management and forecasting.
In addition to AI and automation, the use of robotic process automation (RPA) is also becoming increasingly popular in the management of supply chains globally. RPA enables the automation of repetitive tasks such as data entry, document processing and order tracking, thereby reducing manual labor and increasing efficiency in the supply chain process.
The concept of Supply Chain as a Service (SCaaS) is also gaining traction in the industry. The idea is to outsource supply chain operations to an external provider, who will manage the entire process from procurement to delivery. This enables organizations to focus on their core competencies and reduce their overhead costs.
SCaaS also enables organizations to take advantage of the latest technologies and innovations, without the need to invest in the necessary infrastructure. For example, they can use cloud-based solutions, such as predictive analytics and machine learning, to gain insights into the supply chain process and make informed decisions.
The concept of the circular supply chain is also gaining ground in the industry. The idea is to create a closed-loop supply chain, which is more sustainable and efficient. This is done by reusing and recycling materials and reducing waste.
The circular supply chain is becoming increasingly important due to increasing global focus on sustainability and environmental protection. Organizations are looking for ways to reduce their carbon footprint and become more ecofriendly. And the circular supply chain is a great way to achieve this.
Risk management and resiliency are steadily becoming prominent in the supply chain domain. Organizations need to be able to anticipate and manage risks to prevent disruptions in the supply chain process. This can be done by implementing risk management processes such as scenario planning, risk assessment and risk mitigation.
Organizations are also focusing on building resilient supply chains that are better equipped to handle disruptions and unexpected events. This is done by implementing strategies such as diversifying the supply chain, improving communication and investing in alternative suppliers.
Sustainability is becoming a key focus area for all industry verticals, and not just limited to supply chain. Organizations are looking for ways to reduce their environmental impact and become more ecofriendly. This can be done by implementing green initiatives such as renewable energy sources, energy-efficient technologies and waste reduction.
Organizations are also focusing on ethical sourcing, by ensuring that their suppliers are following ethical practices. This includes ensuring that their suppliers are not using child labor or engaging in any other unethical practices.
The supply chain industry is constantly evolving, with new trends and technologies emerging every day. It is important for organizations to stay up to date with the latest trends in order to remain competitive and improve efficiency, effectiveness, and resiliency of supply chain operations.