The practice of simplifying the transportation of products in order to reduce costs and enhance customer satisfaction is known as the process of supply chain management. Supply chain and logistics are increasingly critical components for any product-based business. Despite the fact that most organizations are finding it difficult to manage the supply chain equitably from top to bottom and seek the assistance of logistics providers like AWL. It is also necessary to investigate whether or not that supply chain management business is following appropriate practices. A good warehouse and supply chain management is when the inventory is handled, procured, and delivered at the right place at the right time. However, there are still multiple challenges present in every industry that an effective supply chain management needs to overcome. Here are some tried and true strategies for helping businesses better manage their supply chain.
Outsourcing Your Worries
Outsourcing benefits operations such as logistics and management because outside providers take full accountability and ensure consistent business growth. Furthermore, their experience and understanding helps them to properly plan and reduce threats. You can enter a long-term contract with a third-party supplier like AWL after considering the various service levels. Either begin by delegating all of your responsibilities to the third party logistics provider, or you can begin with certain Supply Chain components. Everything is dependent on your present business model and whether any aspects of your operation require long-term professional monitoring for enhanced outcomes and cost-effectiveness.
Moreover, as a more feasible financial choice, most organizations begin by outsourcing customer support. Businesses, on the other hand, can convert outsourcing for services like packing, cold-chain management (if required), warehousing and distribution. Outsourcing is vital, especially for organizations with complicated business processes, such as pharmaceuticals, perishable products manufacturers, energy companies, and so on, so that they may focus more on their core business activities and worry less about supply chain management. AWL India, for example, is one of the leading warehousing and distribution companies that provides a great deal to organizations in this area, assisting them with their warehouse and logistics operations.
Technology to the Benefits
Technology can be a fantastic asset depending on how a company uses it. There are several systems, apps, equipment, and configurations on the market that may significantly increase the output and efficiency of the supply chain operations for a business. This is due to the fact that IoT solutions provide automation services and assist the staff in completing jobs much faster than usual. There are several approaches that can be game changers.
1. IoT – Internet of Things
Iot represents the network of physical objects that are linked with sensors, softwares and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. Moreover, there is a large opportunity for IoT technologies. Experts predict that discrete manufacturers, process manufacturers, and transportation businesses will invest the most in IoT deployments, whether they are finished goods, shipping containers, or warehouse stations, to exchange information and provide insights that will disrupt traditional supply chain procedures. Moreover, experts forecast double-digit annual growth for global IoT spending through 2023. IoT will be used largely to assist manufacturing operations and asset management, as well as fleet management and freight monitoring in the transportation industry.
According to a survey by Inbound Logistics, 75% of big manufacturers enhanced supply chain operations using IoT and analytics-based situational awareness before the start of 2020. Suppliers may utilize AI and other advanced technologies to analyze if a shipment of chilled commodities is at risk of equipment failure by tracking location, weather, environmental status, traffic patterns, and more. With this information, suppliers may proactively deploy repair personnel to prevent spoilage or automatically redirect deliveries to a more convenient distribution hub.
2. Blockchain
Blockchain, a distributed ledger technology associated with cryptocurrencies in the 1990s, is currently one of the technologies with the potential to improve the visibility and openness of supply chain operations. Because it provides an irreversible record of transactions, blockchain technology is well suited to tracing the provenance of goods and developing confidence in shared supplier information, even when the parties have conflicting interests and do not nurture trust. Nothing can ever be deleted, which is what blockchain offers. It also raises the question of trust because nothing is ever lost or modified. Blockchain accounts for 18% of the technologies that are becoming increasingly important in supply chain management.
Supporters argue that blockchain can generate an audit trail that is far more efficient than more traditional methods such as email or simple electronic record keeping. As a result, blockchain has the biggest promise in track-and-trace applications that allow firms to track the chain of custody of goods. This allows you to eliminate leaks, detect fraud and fake goods, identify at-risk suppliers, demonstrate that legal requirements are met, and encourage openness in sourcing.
3. AI, ML And Big Data Analytics
By combining technology such as AI, Machine Learning, and Predictive Analytics, businesses can automate warehouse operations, improve delivery times, proactively manage inventory, optimize strategic sourcing relationships, and develop new customer experiences that increase satisfaction and drive sales. By combining technology such as AI, machine learning, and predictive analytics, businesses can automate warehouse operations, improve delivery times, proactively manage inventory, optimize strategic sourcing relationships, and develop new customer experiences that increase satisfaction and drive sales.
The value of predictive analytics is also enormous. According to Deloitte's 2019 Supply Chain Digital and Analytics Survey, organizations are primarily employing predictive analytics to improve cost reduction (81% of respondents) and customer experience (60%). Respondents ranked the following supply chain analytics use cases as the most promising: real-time product intelligence (22%), strategic sourcing and optimization (26%), and inventory visibility and optimization (32%).
4. Robotics & Automation
AI, machine learning, and IoT connection are substantially improving the accuracy, mobility, and safety of industrial robots, allowing a new generation of cobots (collaborative robots) to operate alongside human workforce rather than being separated in a separate safety zone. Robots have long been used in the supply chain to transport goods and resources, move objects during storage and distribution, and complete activities. However, as AI technology progresses and robots grow more intelligent, they will be able to handle many manual tasks that people presently undertake, such as picking and packaging orders and automating labor-intensive loading chores. The possibility of human-robot collaboration is driving large-scale deployments throughout the supply chain.
According to a worldwide market intelligence agency, by 2023, 65% of warehouse operations will utilize robots and situational data analytics to help in storage optimization, increasing warehouse capacity by more than 20% and cutting processing time in half. According to the same survey, more than 60% of global manufacturers would invest in AI-enabled robotic process automation by 2023, enhancing efficiency and closing the supply chain talent gap.
Enhanced Client Services
Along with the evolving technology, there are also more reasons for faultless supply chain management. The route of a certain product through the supply chain begins when a consumer places an order. Human labor, on the other hand, falls short of what an automated warehouse can achieve in a few slowdowns. For example, an employee may be notified that a product has been ordered and must be picked up. The employee in question would need to travel to the product, find the correct item, pick it up, and transfer it to be shipped out. With supply chain automation, these time-consuming stages can be avoided in a variety of ways. Robots can travel a warehouse rapidly and find the proper item. As a result, such robots have begun to be employed in AWL’s automated warehouses.
According to a 2018 poll, swift reaction to client requests is a key business aim for 30% of supply chain professionals. Aside from picking and packaging, supply chain automation benefits the client in additional ways. When an order is received, the fulfillment method is immediately initiated, and the client is kept up to date on the position of their delivery, the projected time of arrival, and any other information they may want.
Keeping Your Supply Chain Safe
Supply chain automation can create systems that have the ability to adapt swiftly to unfavorable conditions. If there is a problem at a production site, an automated system might rapidly make orders for critical equipment or parts from a separate partner without having to go through the traditional chain of command. This puts you ahead of the game while also eliminating the need for a staff to monitor and respond to a situation like this. Because of the epidemic, global supply chain activities are disrupted. Limits and safety rules will also have an influence on the supply chain in 2020, affecting professionals. According to a RetailNext survey, 32% of global merchants faced supply chain disruption in 2020, while 64% of retailers were forced to adapt their supply chain for eCommerce. 57% renegotiated their contracts, and 28% attempted a different sourcing method.
Maintain Shipping Demands
Transportation management systems are estimated to account for $4.8 billion of the worldwide market by the end of 2025. A small amount of supply chain automation may go a long way. According to a recent survey, delivery costs are one of the top worries for over 25% of supply chain experts. Supply chain automation can help to minimize delivery costs by streamlining the whole transportation process. Because there is no need for sophisticated staff to sort out the logistics distribution of trucking, employees may focus on other, more pressing concerns, and your automation will determine the best routes and submit reports to your clients on your behalf. According to Forbes, transportation and logistics operations currently account for 12% of global GDP. Moreover, there is a lot of space for warehouse management in logistics to handle the inventory and keep up with shipment requests.
Conclusion
A prosperous firm is one in which management is completely aware of its aims and interacts harmoniously with its resources via strategic planning. Simultaneously, evolving technology and a variety of advanced automations are the reason for a company's perfect supply chain management. When Artificial Intelligence combines with data and human intelligence, it provides flawless results, allowing organizations to not only focus on their core operations but also simplify their procedures. Businesses must remember that the supply chain is only one of many issues that must be addressed as they attempt to optimize supply chain management and improve their organization's logistical operations. It is unrealistic for a company to handle all aspects of supply chain management. It will not only have an effect on the quality of these procedures, but it will also need attention and constant monitoring for progress. Instead, businesses may make the wise decision to outsource logistical services.
Rahul Mehra
CEO at AWL India