Building supply chain resilience is more crucial than ever in today’s changing world. Sensible technology selection and implementation choices will support the ability to withstand disruptions, carry on with regular operations, and continue growing.
A successful business depends on efficient supply chain management for its agility and profitability. Resilience is a crucial characteristic needed for supply chain management and coordination.
Most industries have experienced supply chain interruptions because of COVID-19. During COVID-19, many businesses had issues that affected shipment timing, costs, efficiency, and revenues. These effects emphasize the value of creating a supply network that can withstand a storm and recover quickly.
For this, technology is essential. A variety of outstanding technologies can increase the resilience of the supply chain. Let’s examine the modern world’s global supply chain and how you might strengthen and adapt.
Supply chain challenges in a post-pandemic world
Because a small issue in one link in the chain can have a major impact on the entire network, managing supply chains can be challenging. Sadly (or thankfully), Covid-19 has highlighted many supply chain vulnerabilities as businesses crumbled under the weight of supply, demand, and ability-to-service shocks.
Even though limitations are being loosened and borders are opening again, there are still several difficulties, including labour scarcity and a lack of equipment. Consumer demands, despite all of this, are still changing. Customers are accustomed to (and demand) quick delivery and flawless experiences due to the pace of e-commerce.
Businesses have been changing their operations to preserve competition and create more robust supply chains. To adapt to changes, several businesses are regionalizing their supply chains. Others have begun investigating supply chain solutions to increase operational effectiveness and reduce hazards.
Digital transformation to build a resilient supply chain
Businesses must future-proof their supply chains by lowering complexity and uncertainties as they adjust to the new normal. Future supply chain management will depend heavily on increased digitization and cutting-edge technologies. Companies can get many advantages through digital transformation, including:
Higher visibility
You may improve supply chain visibility with blockchain, cutting-edge track-and-trace systems, and enterprise resource planning (ERP). You can see your whole inventory as it moves and takes proactive steps to reduce risk when you have excellent visibility.
Collaboration is improved because strong supplier connections provide chain-wide openness. You can swiftly coordinate processes and adapt to change by regularly working with supply chain participants. Technology is needed to gather and distribute data every step along the way.
Thanks to data analytics, artificial intelligence (AI), and machine learning (ML), you will have predictive capabilities to keep on top of supply chain risk management. By foreseeing probable disruptions, for instance, you can modify inventory decisions.
New Technologies
Here are some of the developments that are beginning to make a difference. They are enabling the establishment of reasonably priced factories nearby. They are also enhancing operations and cutting the time it takes to train employees on activities like assembling various mechanical or electrical goods on the same assembly line from months to days.
- AI + HI. The development of AI, particularly human use, presents new possibilities to escape the cost trap. Cobots, which directly interact with humans in industrial plants, have undergone significant advancements that integrate AI and HI to reduce labour costs while maintaining the value of human oversight.
- 3D printing. With the development of additive manufacturing (3D printing), businesses can increasingly make various parts and goods on a budget. They enable companies to streamline production in closer-to-home plants, lessening dependency on numerous and far-off suppliers.
- Recognition technology. AI-driven action recognition technology integrates live video with analytics in manual production processes like vehicle engine assembly to make sure that employees are correctly performing challenging stages without making mistakes. The end results are better quality control, increased output, and datasets that can be utilized to enhance procedures.
- Digital manufacturing solutions. These systems provide end-to-end traceability, enable real-time data entry by employees, track product manufacturing across workstations, and guarantee that only high-quality parts are sent farther upstream.
- Three-dimensional simulation. They include metaverse software applications like Omniverse from Nvidia. They enable manufacturers to replicate factory architecture, workstation design, and assembly design and create digital twins of their operations.
- Logistics technology. This sector is receiving a ton of investment, particularly in technologies for managing warehouses, matching freight loads to available transportation, and choosing the most economical route. The rate of investment by venture capital firms implies that before the end of this decade, VC funding for “supply tech” will surpass that for fintech.
Building supply chain resilience is more crucial than ever in today’s changing world. Sensible technology selection and implementation choices will support the ability to withstand disruptions, carry on with regular operations, and continue growing.
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