Top 10 Future Trends in Supply Chain and Logistics
From the first wheel in the Neolithic age to the modern automated driver less automobiles, the logistics segment is ever evolving. Wheel was definitely one of the greatest invention made by men after the invention of fire. The invention of the wheel evolved transportation and has given rise to the modern day logistics industries and to the ever growing dimension of the supply chain management. Advanced technologies, globalisationand digitalisation of processes has resulted in immense metamorphosis of the supply chain cycle. Today, we shall discuss 10 future trends that will definitely make an impact on the supply chain segment in the coming years.
- Customer segmentation:Logistics industries have shifted from the traditional approach of segmenting customers on the basis of age, gender and occupations. The trends predict that customers must be now segmented on the basis of their purchasing and delivery needs and requirements.
- Risk Management: Reduction and mitigation of risks will remain a top priority for Supply chain managers. Legal requirements, risk screening and elevated diligence by interested parties have created immense pressure on the supply chain industry to prioritize risk management.
- Digitalization: The application of digital gadgets to redesign the supply chain management operations will remain a popular trend in the logistics industry. Reliability on automated digital applications minimises human intervention and error.
- Robotics: Widespread adaptation of advanced technologies, artificial intelligence and robotics will increase across the supply chain cycle. Robotic process automation or Artificial Intelligence allows the logistics companies to cut down on costs, eliminate errors and relieve the workforce from strenuous and repetitive physical tasks.
- Reverse Logistics: The supply chain industry has shifted from a linear supply chain to a circular supply chain. Used products are now sent back to the supplier for re-use via reverse logistics. This has brought about higher sustainability and increased customer loyalty in the supply chain industry.
- Real time inventory management: Sensors and POS machines can capture inventory at real time. This streamlines the supply chain process and reduces inventory hold time. When everything is tracked through internet sensors, it also minimises loss of products.
- Visibility and transparency: Futuristic supply chain leaders can incorporate better visibility into their supply chain process and create transparency to enhance the customer delivery experience. Transparency provides strategic foresight to the business and allows innovation with the suppliers.
- Real time tracking: Real time tracking of the cargo and transportation enables the manufacturing plant, warehouse and supplier to work in collaboration and plan their business needs accordingly.
- Block chain technology: With the ever expanding global economy, there is bound to be a resource scarcity at many levels. Logistics companies will utilisedecentralised block chain technology as an advanced alternative to substitute for the same. Block chain technology can be used to store records, manage expense statements and verifycustomers at the receiving end by storing their IDs through block chain technology.
- Data driven approach: Demand anticipation is now done on the basis of data analysis and not just market prediction. Predictive analysis backed up with data captured from the current buying trends in the market will provide deeper insights into the market demand and supply ratio.
The supply chain industry is highly competitive and fast paced. The wheel has to keep moving forward. Business leaders must plan in advance and apply these trends to keep ahead in the global market.