What a difference a year makes. Last year, around this time, our television screens were dominated by images of hundreds of cargo ships backed up at the Port of Long Beach and Los Angeles unable to unload their cargos. The unprecedented ongoing disruption in the global supply chain caused by the Covid-19 pandemic had many people fearing they wouldn’t be able to get that popular toy for their child for Christmas, their favorite foods, or a new car. But while the logjams in the supply chain have eased up tremendously compared to 2021, things are far from back to normal, and may never be again. The future of supply chain is ever evolving. In fact, research by KPMG found “the pace of change is accelerating”. To future proof their supply chains experts say businesses need to invest heavily in technology.
Leverage Technology to Future-Proof your Supply Chain
On a recent GDS Supply Chain summit, Torsten Pilz, Chief Supply Chain Officer (CSCO) at Honeywell said enterprises should leverage data to improve their supply chain. “You have huge data storage capabilities; you have unbelievable data analytics capabilities.” A study by Gartner found by 2026, more than 75% of commercial supply chain management application vendors will deliver embedded advanced analytics (AA), artificial Intelligence (AI) and data science. The use of digital technologies such as AI, ML the Internet of Things (IoT) and blockchain are revolutionizing supply chains by enabling real-time supply chain visibility and increased supply chain efficiency. AI and ML can be used to improve supply chain forecasting, automate processes, and reduce labor costs, while IoT connected devices provide visibility into inventory levels and supply chain operations.
These advances in supply chain technologies are allowing businesses to stay ahead of the competition and become more efficient, secure, and profitable. In addition to leveraging technology, businesses must stay agile in a competitive market.
Stay Agile
Honeywell’s CSCO Torsten Pilz, told attendees at the summit that in these uncertain times they need to be agile. “What we do is we just accept that we don’t actually know what’s going to come down the path the next couple of months. We have a very well-oiled mechanism inside the company to be able to react to it.” According to Pilz, having a good supply chain team in place is also key. “In a world of supply chain constraints, actually they need a really great supply chain team. That ensures that people get the means, capital, and investments they need to prepare for this.” Furthermore, supply chain leaders must consider how emerging geopolitical situations, such as the war in Ukraine may impact their operations.
The Future
The supply chain of tomorrow is a dynamic, interconnected ecosystem, where emerging technologies drive efficiency and sustainability. By investing in supply chain technology, remaining agile and staying informed on global trends, businesses can ensure their supply chain remains strong now and into the future.
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