Future of supply chain will depend on predictive analytics and operational optimization. Intelligent SaaS platforms, AI-based tech tools and automation will make it easy to understand health of supply chain and predict any performance hurdles that might sprout shortly. Below-mentioned trends will be key to acing supply chain in future.
Logistics is a rapidly changing industry with new technological advancements each day. The industry must work towards increasing the efficacy and agility of the supply chain. Here is how:
EV adoption: An efficient supply chain is crucial for businesses today and this is where electrical vehicles (EVs) step in. The transportation sector witnessing technological growth and automotive technology innovation in EVs allows for connectivity and end-to-end visibility. This has made them perfect for adoption in the logistics sector making the supply chain more responsive and agile. Even though in its nascent stage, EV technology is already proving to be promising. The transition of fleets to EVs will help businesses reduce global greenhouse gas emissions. EVs help in saving about 40 per cent in delivery costs as compared to other vehicles. This leads to increased ROI and aids in sustainability. Currency with hyperlocal and LMD no order ticket value is small. In such a scenario, it is important for companies to apply cost-effective methods for logistics and EVs provide them with this opportunity.
Automation: Automation in the supply chain sector is the next big advancement. Many retailers are already experimenting with automated warehouses, drone deliveries among others. Automation will not only advance hyperlocal, but also sort the backend processes in supply chain management. The back-end processes currently are mostly manual. All these processes such as order sorting, order picking and forward delivery allocation are meticulous tasks and take a lot of time. Automation can help businesses in overcoming this bottleneck by eliminating issues like delays, human errors, pilferage, risks to human life and the like. This increased operational optimization via automation is one of the main trends in supply chain management.
Strategic warehousing: With the growth of hyperlocal, the companies are looking at strategic warehousing to optimize costs, time, and operations for hyperlocal.
Forecasting the trajectory for inventory management via tech-based tools and advanced analytics is becoming a crucial part of supply chain management. Discerning key locations for micro-warehouses or fulfilment centers will be key to acing supply chain agility in the coming years. Besides this, warehousing will also include automated order tracking, order cancellation and buying patterns to ensure end-to-end visibility. Warehousing operations will include inventory management down to the designated shelf, rider allocation, and order management.
Route optimization: Currently, there is no system in place that helps riders with route optimization. This has become one of the major bottlenecks for the supply chain management. There is no software or algorithm in place to help figure out the shortest route for delivery. Technological advancements in the same will be one of the biggest trends in supply chain management.