The logistics sector, or, more specifically, logistics principles, have existed for millennia since people first needed to travel to fulfill their fundamental requirements for food or protection from the weather, and humankind has been developing and modernizing throughout all of human history.
The adoption of new technologies and the development of cost-effective procedures have spurred a paradigm change in the global logistics business. As the logistics business becomes more competitive on a global basis, it has become critical for every organization to adopt new technologies and incorporate them into their operations in order to reap the biggest benefits.
KEY TAKEAWAYS
- Introduction to technology in supply chain management
- How AI is transforming the whole supply chain?
- New trends in supply chain management
- How technology is re-shaping inventory management?
- Obstacles in technology for seasonal inventory management
- New challenges in supply chain and inventory management
- The conclusion
Introduction
RFID technology is already allowing tags to be attached to objects or persons, allowing data to be captured and examined remotely. Tracking and shipping technology has already shown its worth in the supply chain business by providing near real time information about the precise location and status of products. As the nature of work has evolved to become more knowledge-intensive, managers' control over employees' behavior has lessened. Excessive data has also opened up new business concepts and provided us with a greater grasp of what our consumers want and need. Logistics operations have evolved and become more transparent as they have merged with technology. Transparency has increased, but purpose, responsibility, and the capacity for misbehavior have decreased.
The Power of AI in Supply Chain
Artificial intelligence (AI) technologies such as smart route planning, high-tech transportation, and operational demand planning have begun to be used in logistics consultancy in recent years. It's only the beginning. AI is already having a huge influence on supply chain management, from predictive optimization tools to last-mile delivery drones and sustainability solutions to warehouse automated picking systems. AWL India is one of the best warehouse logistics companies in India that offers the most advanced technological advancements. These advancements in logistics technology are expected to continue, benefiting suppliers, shippers, carriers, and customers.
Along with Artificial Intelligence, augmented intelligence is expected to gain popularity. Automation and human minds are merged to generate Augmented Intelligence since AI technology requires human characteristics like responsibility, experience, adaptability, customer service, common sense, and more. Work that is repetitive and difficult, such as logistics planning, can benefit more from augmented intelligence than AI alone.
Technology Trends in Supply Chain Management
The current epidemic has highlighted the importance of a good supply chain, and the logistics link and warehouse management are critical components of a successful supply chain network. Parts shortages, ocean freight backlogs, border closures, driver shortages, poor inventory management, and warehouse space restrictions in the last year have underlined the importance of logistics in keeping supply chain networks running smoothly. Six technology trends recognised by industry experts are influencing the future of supply chain management.
- Blockchain
- Artificial Intelligence
- Data analytics
- Warehouse automation
- Sustainable development with technology
- Autonomous automobiles
When seeking for a competitive edge through technology, we focus on two application areas: hardware applications and software applications. Even though we will not be looking at every new developing technological breakthrough, it is crucial to recognise that technology adoption in the transportation firms in the Indian sector is a dynamic process that necessitates adaptive management strategies.
Technology in Inventory Management
Inventory management technology allows you to track the movement of items into and out of warehouses. Moreover, warehouse management in logistics is an integral part that requires the latest technological advancements. Also, it allows you to keep track of the amount of products that are easily accessible, the inventory on the shelves, and the sales process of orders as the goods are picked and packaged for delivery. The goal of a warehouse equipped with proper inventory management systems is to ensure that commodities are neither damaged or lost while being moved.
- Real-time data management: Warehouse service providers use this approach to provide more information on actual inventory levels and client sales order history. Real-time data updates are received by any computer machine connected to the network.
- Scalability: Many systems allow you to select the features that best fit you in order to add more features to your present requirements as your organization grows. Businesses may increase their operations while remaining competitive thanks to this technology.
- Centralized systems: According to logistic consulting companies it is advisable to use inventory management technology for more information exchange between departments, which can increase coordination and cooperation. All systems are centralized while allowing employees to operate from anywhere.
- Reporting and Analysis: These services assist in acquiring important data at the appropriate time, analyzing it using preset criteria, and providing informative reports that are beneficial to the organization. Inventory technology management provides these services.
Increased demand for particular items provides evident benefits for shops that specialize in them, such as higher sales and, more crucially, higher profits. However, according to third party distribution companies like AWL, there are several roadblocks in inventory management. The rapid increase in demand is typically followed by a fast decrease in demand. Inventory control may be difficult to estimate since organizations must order just the necessary amount of inventory to fulfill demand. Businesses in this position strive to have just enough inventory to meet demand, but this is a difficult game to master. Seasonal inventory can cause stock overordering, and if supply decreases sooner than expected, you may be stuck with an excess of stock.
Obstacles in Seasonal Inventory Technology
While seasonal inventory may be a terrific way to promote sales, it can also be a major issue for organizations' inventory management processes. Seasonal inventory also implies that firms must spend more money since they must stock up on items ahead of a surge in demand. This requires investing a significant amount of money on goods, so businesses must ensure that they have enough cash on hand to last until sales pick up when the time comes. Seasonal inventories can be unexpected, even if they can forecast a broad rise or decrease in demand. While companies may anticipate that demand would increase around festivals or peak seasons, it is more difficult to forecast when demand will begin to wax and wane.
As a result, seasonal inventory may be a burden for inventory control strategies, making it difficult to forecast demand fluctuations correctly. The adaptability of a company's inventory management procedures is primarily reliant on technology. It may help any business model, including companies that operate online, where customers may not engage with human salespeople while placing orders.
New Challenges in Supply Chain and Warehouse Inventory Management
1. Climate Change
Environmental consequences are visible in numerous businesses, including food and beverage. Food and beverage firms are particularly vulnerable to the effects of climate change since changing weather patterns can reduce agricultural production. This new danger has forced supply chain technologies to become more resilient. Supplier operations account for more than 95% of a company's total emissions, which is why companies are now seeking to set carbon footprint objectives. Measurement of the availability of natural resources, infrastructure, financial resources, and social safety networks, among other things, may help supply chains adapt to challenges and increase their resilience.
2. Social Impact
Consumers are increasingly demanding supply chain transparency and traceability, especially in countries where significant socioeconomic breakdowns such as child labour and forced labour for internationally traded commodities exist. In addition to sustainability and resilience, a moral supply chain is required to ensure corporate social responsibility and adherence to a supplier code of conduct. Workers should have a pleasant working environment that does not violate their basic human rights. For example, multinational firms that outsource the manufacturing of their raw materials to countries such as India and China face criticism over their employees' working conditions and pay.
3. Stakeholders
Buyers wield significant influence on their vendors' and suppliers' business practices as a result of their purchasing power. Companies that fulfill the role of purchasers source goods or services for internal use or consumption through organizational procedures such as sourcing, procurement, and purchasing. Vendors or suppliers often sell their goods or services to the chain's next member. As a result, even if their supply chain involves several complicated upstream supplier tiers, customers may just interface with the top layer of their suppliers. Progress in the field of sustainable procurement has been achieved as businesses support suppliers in developing and executing sustainable programmes that directly promote the business's objectives. Buyers hope to achieve their sustainability goals by creating performance standards for their suppliers.
4. Government Influence
Governance mechanisms in global supply networks, in addition to social and environmental factors, can be problematic for supply chain sustainability. Among the governance aspects are guidelines and practices for governments and enterprises. Buyers examine the governance procedures in their supply chains, such as the company's goals, the role and composition of the board of directors, shareholder rights, and the methodologies used to assess corporate success.
5. Collaboration
Collaboration is a critical component of a successful, long-term supply chain. Collaboration is unusual because many organizations are hesitant to cede control of their operations to outsiders. Investing in alternative transportation systems, like airships and canals, can help businesses drastically reduce the cost and environmental effect of their deliveries. Furthermore, supply chain orchestration allows pooling distribution that helps in reducing waste by eliminating half-empty vehicles from being dispatched and ensuring that deliveries to the same address are performed on the same truck.
Conclusion
Experts believe that future-proof supply chains are becoming more prevalent. Many companies' strategic DNA has been deeply engraved with the lean, cost-focused strategy of getting practically everything from one platform. It won't happen overnight, it won't be easy, and it will almost certainly include costly layoffs in the beginning. However, firms must carry it out. According to AWL India, the leading warehouse consultants, making just a few changes to your current supply networks will not be enough. For foundational redesigns, segmentation, transfer of some functions, and a significant investment in new technology are all required. According to experts, these cutting-edge technologies include artificial intelligence (AI) and augmented reality (AR), cloud computing, robotic process automation, and the internet of things (IoT). The rapid pace of technological innovation has accelerated digital supply chain management systems.
Fortunately, as new technologies emerge, embarking on a technology journey will become easier and more economical. Businesses that swiftly embrace new solutions while retiring old ones will be better positioned to navigate this decade with more insight and efficiency. Even if organizations cannot utilize a crystal ball to help predict the future, they may still prepare to be ready for gen-Z supply chain management.
Depreet Singh
Warehouse Manager