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    The Rise of Disruptive Supply Chain Technology: What You Need to Know

    • The unprecedented events of recent times have exposed the vulnerability of supply chain operations.
    • Disruptive supply chain technology can guard against potential risks and help build an agile and resilient supply chain.
    • The rapid emergence of generative AI is also expected to make a huge impression on all aspects of supply chain management.

    August 04, 2023 | Supply Chain Software

    Many businesses had little idea what a supply chain disruption could do before the pandemic hit in 2020 and caused lockdowns across the world. Disruptions in the supply of key components hit most industries, halting operations for long periods.

    Since then, geopolitical tensions, economic uncertainty and rising inflation have made matters worse for businesses.

    A series of unforeseen events in recent times have also compelled businesses across industries to rethink their risk mitigation strategies. What steps should they take to mitigate such risks and safeguard operations? How can they stay prepared for potential disruptions? And how can they remain competitive in a rapidly changing market?

    As they ponder over these issues and look to redefine their strategy, deploying technology has become a key priority, especially in regard to supply chain operations.

    The popular opinion today is that businesses must no longer delay technology deployment and digitize operations. Given that supply chains are perhaps the most vulnerable to emerging threats, investing in supply chain technology should be top of the mind.

    What Disruptive Supply Chain Technology Can Do

    Disruptive technology in supply chain allows businesses to have real-time visibility into supply chain operations. It allows a business to work closely with its suppliers, logistics providers and other partners. It also allows a business to accurately forecast demand and prepare accordingly.

    Here are the key benefits of investing in disruptive supply chain technology:

    1. Act proactively:

    Get complete visibility into the inner workings of supply chain operations. End-to-end visibility helps your business get a better hold of operations, identify potential roadblocks and take corrective action.

    2. Simplify inventory management:

    Centralize inventory management with a single dashboard that connects different systems and data sources. Get real-time inventory visibility across different locations in one dashboard view. AI-powered technology can also monitor stock levels and generate replenishment orders. Along with inventory, a business can get real-time visibility of raw materials, components and finished goods in transit.

    3. Leverage data-based decision-making:

    AI-powered supply chain technology brings together data and generates insights with the help of predictive and prescriptive analytics. Such analysis can help supply chain teams identify trends and make well-informed decisions.

    4. Forecast demand:

    Precise visibility of real-time data also allows businesses to accurately sense demand and predict changes. With this information, they can collaborate with suppliers across multiple tiers and share demand forecasts and replenishment plans.

    5. Build should-cost models:

    Disruptive technology in the supply chain also provides accurate visibility into cost drivers. This information helps supply chain professionals create multi-layered should-cost models and arrive at an estimate that is closer to the target price. It also allows them to track changes in cost values in tune with price movements of market indices.

    6. Configure workflows:

    Today, disruptive technology in the supply chain comes equipped with a low-code no-code design , reducing the dependency on IT teams to configure workflows. Such a design allows non-technical supply chain professionals to easily build new capabilities, configure apps and meet specific needs.

    How Generative AI Can Impact Supply Chains

    The emergence of generative AI is further set to transform the way supply chains operate. While businesses are still exploring the use cases of this technology, it is likely to make a huge impact on all aspects of supply chain operations including sourcing, supplier selection, procurement, inventory management, risk management, logistics and demand forecasting.

    Powered by machine learning and natural language processing, generative AI systems can analyze vast amounts of data and generate actionable insights to enhance operational efficiency and decision-making.

    Supply chain and procurement professionals across industries are expected to increasingly rely on this technology to simplify tasks that require problem solving, information synthesis and analysis.

     

    Tags: supply chain

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