To stay competitive in the global market and remain on the cutting edge of the complex business world, most companies turn their face to information technology (IT) in their supply chain management system.
With 75% of companies facing disruption in their supply chain because of the COVID-19, companies need a rock-solid IT management system that helps overcome their supply chain resiliency.
With the advent and penetration of technology, companies have realised that this technology ensures better visibility and accountability, allowing them to maintain control over their supply chain management. With leading IT solutions, companies can keep track of their production, anticipate and repair machines, and make desired modifications that guarantee a top-quality product.
But what technologies can make an impact?
While there are a lot of technologies, including machine learning (ML), artificial intelligence (AI) and the internet of things (IoT) that improve the efficiency of your supply chain, only some can make a difference in your bottom line.
In this article, we discuss technologies that can overhaul supply chain operations and management:
How to use IT to improve supply chain management
Here are a few IT solutions that can improve your supply chain management.
1. Use IT asset management software
The supply chain works perfectly when everything comes together exactly how and when it should. You can repair and rectify minor issues with your supply chain. But when your machine breaks down spontaneously, bringing things back on track is impossible.
While rarely a company has no plan B, once the supply chain stalls, it takes a lot of time to get everything back on track. That’s where effective ITAM comes in.
Today, IT asset management or ITAM is a catchall for everything you require to keep your supply chain in tip-top shape. Companies that implement an effective ITAM (IT asset management) software can avoid disruptions and ensure reputations, revenues, and workflows remain intact.
When choosing an ITAM software, ensure you choose one that easily integrates with your supply chain because such software helps save a lot of time, effort, resources and money.
2. Focus on demand forecasting
According to research, tech-enabled demand forecasting decreases forecasting errors by 30-50%.
Inaccurate forecasting can mislead you, and you can lose out on sales because of wrong inventory data. When such a thing happens, it results in overstocking or under-stocking of products that might cause potential losses.
Earlier inventory forecasting primarily depended on historical data, but with IT-enabled demand forecasting, brands can optimise inventory levels, replenish inventory and forecast demand more accurately.
Machine learning takes demand forecasting to another level because it provides real-time information by collecting data from internal and external sources.
Even for new products that lack historical data, ML helps a company identify the sales trend of similar products and uses that data to make accurate predictions.
3. Make use of artificial intelligence (AI)
Did you know that the supply chain and logistics industry is likely to gain 89% value through the adoption of AI?
By using AI, companies can make better business decisions. AI helped reduce empty freight trips and plan labour resources in the past.
AI-enhanced tools are thoroughly used in the supply chain to reduce the impact of a worldwide worker shortage, increase efficiency and discover safe and efficient ways to move goods from one point to another.
Companies widely use AI to optimise routing efficiency, deliver logistics, and improve vehicles’ health and longevity. Additionally, AI tools can make maintenance recommendations and failure predictions based on past and real-time data. This helps a company take vehicles out before creating a blockage in the supply chain.
Today, AI could be the game-changer that helps supply chain managers uncover revenue increasing and cost-saving methods.
4. Implement robotic process automation (RPA)
According to Deloitte, robots are likely to witness substantial growth, particularly within the supply chain industry.
Robotic process automation technologies include drones, delivery and storage and retrieval systems (ASRS). When a company implements RPA in their supply chain, it brings along a bouquet of benefits, including increasing efficiency and productivity, improving employee safety, and completing mundane tasks so that employees can spend time on strategic efforts.
Also, drones and other RPA technologies help increase revenue by enhancing order fulfilment and delivery speed while leaving the customer satisfied.
5. Use blockchain
Though primarily synonymous with cryptocurrency, blockchain technology is a distributed ledger technology that improves the transparency and visibility of your supply chain process.
Using blockchain in the supply chain helps you keep track of price, quality, certification, date and other relevant information to manage your supply chain.
When a blockchain saves this information, it increases the traceability of the material supply chain and lower losses from the counterfeit and grey market. It ensures compliance over outsourced contracts and positions your company as a leader in responsible manufacturing.
Using blockchain, companies can help trace their product’s history right from the point of origin. Every time a product changes hands, the transaction gets documented, creating a permanent history from manufacturing to sale.
Companies can reduce time delays and human errors associated with supply chain management using these technologies. When the intermediaries in the supply chain reduce, it automatically reduces the risk of fraud and ensures supply chain efficiency.
Additionally, because of this immersive technology, companies can identify various instances of fraud, and the comprehensive records enable you to know the source of fraud.
Companies can automate payments, track shipments, and synchronise logistics data using blockchain technology.
6. Use the internet of things (IoT)
The Internet of things (IoT) is a collection of interconnected physical devices that can monitor, report, send, and exchange data.
IoT devices help track and authenticate products and shipments using GPS and other technologies in the supply chain industry.
IoT devices are essential in the supply chain because they can monitor and track product conditions, enhancing quality management throughout your supply chain.
Today, companies are attaching IoT devices to specific storage items to authenticate the location of goods and products. The technology works when IoT devices transmit locations which the GPS satellite picks and tracks the movement of goods.
IoT is helpful in the supply chain management of food and chemicals. This technology helps in monitoring the storage conditions of products and raw materials. As these products require optimum storage temperature, specialised IoT devices can track and monitor areas like humidity, temperature, light, intensity and other environmental factors.
These devices might trigger an alarm if the supply chain breaches a certain threshold limit. It becomes much easier to track the quality of goods that pass through.
7. Make use of 3D printing
3D printing and additive manufacturing are disruptive innovations that are likely to have a far-reaching impact on supply chain management.
This technology has the power to overcome geopolitical risk, reduce cost, decrease carbon footprints and drive innovations to ensure competitive advantage. Also, 3D printing can drastically cut down supply chain complexities, reduce the time to market your products, and decrease global impact by limiting the shipping of goods across the globe.
Implementing 3D printing in your supply chain offers many benefits, like improving resource efficiency. As 3D printing is a greener, energy-efficient and cost-efficient production method, it lowers the risk of overproduction, creates zero wastage and reduces carbon footprints.
With 3D printing, companies can customise their supply chain. This results in more agile supply chains that can adjust to market changes.
Interestingly, Airbus is constructing their planes with large scale 3D printers. When companies like Airbus can implement 3D printing, even your organisation can adapt. The 3D printing additive manufacturing revolution is just around the corner, and it could positively affect your supply chain more than you can think.
So, the smart move is to prepare for the revolution by implementing 3D printing in your logistics and supply chain process.
Improving supply chain management
To stay ahead of the competition, continually adapt to the emerging tools and techniques.
Using supply chain technology, you can enhance your company’s productivity by reducing costs and improving customer satisfaction.
A technology-enabled supply chain helps allocate critical products and supplies while saving time and money.
Today, the secret behind successfully managing a supply chain lies in IT. By implementing and using ITAM, 3D printers, the internet of things (IoT), machine learning and artificial intelligence, you can make your supply chain more efficient.
Tracking a moving truck from start to finish, monitoring what goes in and out of the storage, and monitoring the storage temperature of products can help you become leaders in your industry.
The role of IT in supply chain management is undeniable, and it binds your company’s operations together.
By implementing the latest and breakthrough technology to improve supply chain management, you’re providing better services to your customers while allowing a business to compete with its competitors on better or equal terms.
Author’s bio
Priya Jain has been copywriting professionally for over 8 years. She teaches math, spends her time running behind her toddler and tries new recipes whilst she isn’t writing. She has attained an engineering degree, and an MBA. You can find her on LinkedIn.