In the tech-savvy world of today, advanced supply chain management tools are shaking up the industry. As the technologies evolve more and more, the fields of generative AI, automation, data analytics, machine learning, automation, blockchain, Internet of Things (IoT) become more powerful and capable. With all this happening the new ‘smart’ supply chain model is definitely on its way to becoming the new normal.
These new strategic tools for supply chain management will play a big role in shaping the new operating models and will also improve broad processes. This is why businesses must understand and apply these trending supply chain management tools so that they can create a more responsive and agile supply chain that is in line with the tech-savvy business world of today and is also able to capture the promise of value creation, improve shareholder value, as well as cost reduction.
Best Supply Chain Management Tools & Trends To Watch
Artificial Intelligence
AI is one of the best supply management tools that is revolutionising the industry. The supply chain’s efficiency is often hindered due to variables like government regulations, pandemics, globalisation, transportation costs, and more. With forecasting that is armed with AI intelligence, businesses can prevent mishaps in the future. AI can overcome mismatches of demand-supply preventing inventory overstock or understock. AI-based algorithms automate goods retrieval from the warehouse for smooth order fulfilment while chatbots improve customer service.
Internet of Things
In the dynamic world of business, supply chains are also becoming increasingly complex, and this is where IoT-one of the new strategic tools for supply chain management plays a key role in simplifying things. IoT- enabled asset tracking ensures transparency and prevents loss, while also regulating the speed of movement of goods throughout the supply chain. This streamlined process equips suppliers as well as distribution centres to receive goods in time, thereby reducing handling times. Moreover, these days’ smart containers that are IoT equipped also provide data to help monitor the quality of cargo.
Flexible Supply Chain
The traditional supply chain is slowly losing its relevance due to its rigid nature because even the slightest market variations lead to the total breakdown of these supply chains. Flexible supply chains are now in trend as they respond better to short-term or rapid changes in market demand. These new improved supply chains are equipped to easily adjust inventory levels, handle large volumes of materials, and change production or transport capacity. Moreover, these new supply chains are integrated with eCommerce platforms, which allows businesses to get a better understanding of customer patterns.
Blockchain for Transparency
Blockchain technology is among those supply chain management tools that are all set to become mainstream by 2025. Blockchain will help in decentralising and tamper-proofing ledger so that supply chain transparency is enhanced further. Blockchain secures information while also tracking goods in real time. This is extremely crucial in industries like food and pharmaceuticals as they require high levels of traceability for their goods.
Sustainable Supply Chain Models
Sustainability is a growing trend in the supply chain which promotes environmental-friendly materials and processes. This involves the use of eco-friendly packaging material made, and the use of electric vehicles (EVs) for zero-emission transport of shipment. This approach also discards the traditional take-make-dispose approach and takes up a sustainable working model where they recycle, repair, or repurpose products.
Conclusion
The new strategic tools for supply chain management, help in making supply chains of today more predictive, agile, and responsive. With the use of AI and automation on the rise, the supply chain industry is steadily moving towards a proactive supply chain management approach.
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