One of the most immediate and noticeable impacts of your technology on supply chain processes is the dramatic improvement in organisational efficiency. Traditional supply chains often involved a great deal of manual work, from data entry to inventory
management, which was not only time-consuming but also prone to human error. Today, automation, robotics, and artificial intelligence (AI) are streamlining these operations.
For example, robotic process automation (RPA) can handle routine tasks like order processing and invoicing, cutting down the time from hours to mere minutes. Company, businesses that have adopted automation in their supply chains have seen a 20 per cent reduction in operational costs and a 30 per cent increase in overall productivity.
AI and machine learning (ML) are also crucial for demand forecasting and inventory management. By analysing historical sales data and current market trends, AI-driven systems can predict future demand accurately, helping maintain optimal inventory levels
and avoid stock outs or overstocking. A study by PwC in 2022 found that AI-driven demand forecasting that AI-driven demand forecasting can reduce forecasting errors by up to 50 per cent, leading to a 20-30 per cent decrease in inventory costs.
The Internet of Things (IoT) is also enhancing your efficiency by providing real-time data on the location and condition of goods as they move through the supply chain. IoT devices, like sensors and RFID tags, allow you to monitor the temperature, humidity, and
even the vibration of sensitive products, ensuring they reach their destination in perfect condition. Gartner reported in 2023 that 60 per cent of supply chain leaders have implemented IoT solutions, leading to a 15 per cent reduction in waste and spoilage.
Improved visibility: Enhancing transparency and accountability
Visibility has always been a challenge in supply chain management. It’s tough to track products and shipments across multiple stages and geographic locations. But technology is now offering unprecedented transparency, making it easier for you to
monitor your supply chain in real time and address issues before they escalate. Blockchain technology is making a significant impact here.
Also Read: How companies are using AI to prevent supply chain disruptions?
By creating a decentralised and immutable ledger, blockchain allows everyone in your supply chain, from suppliers to customers, to access the same information. This level of transparency reduces the risk of fraud and enhances accountability.
For example, in the food industry, blockchain is being used to track the journey of products from farm to table, ensuring they meet safety and quality standards. IBM’s 2022 study on blockchain in supply chains found that companies using this technology saw a 70 per cent improvement in traceability and a 50 per cent reduction in counterfeiting.
AI-powered analytics platforms are also giving you deeper insights into your supply chain. By analysing data from various sources, these platforms can identify bottlenecks, predict potential disruptions, and recommend solutions to optimise performance. A Deloitte survey in 2023 revealed that 55 per cent of companies using AI in their supply chains reported a 20 per cent improvement in decision making speed and accuracy.
Increased resilience: Adapting to disruptions
The COVID-19 pandemic highlighted vulnerabilities in global supply chains, with many companies struggling to adapt to sudden disruptions. In response, there’s been a growing focus on building more resilient supply chains, and technology is crucial in this
effort.
One way technology enhances resilience is through digital twins. A digital twin is a virtual replica of your physical supply chain, allowing you to simulate different scenarios and assess the impact of potential disruptions. By testing various “what-if” scenarios, you can identify weaknesses in your supply chain and develop contingency plans. A 2023 Capgemini report found that companies using digital twins experienced a 30 per cent reduction in downtime and a 20 per cent improvement in their ability to respond to disruptions.
Also Read: Leveraging AI and ML in supply chain management for smarter decision making
Predictive analytics can also help you anticipate and mitigate risks in your supply chain. By analysing historical data and external factors like weather patterns, political instability, and market trends, predictive analytics can forecast potential disruptions and suggest proactive measures.
For instance, you might use predictive analytics to reroute shipments in anticipation of a hurricane or switch suppliers in response to geopolitical tensions. Gartner’s 2023 study showed that companies using predictive analytics reduced the impact of disruptions by 25 per cent and improved their supply chain resilience by 40 per cent.
Moreover, cloud-based collaboration tools enable you to work more closely with your suppliers and logistics partners to manage risks. These tools allow for real-time communication and data sharing, making it easier to coordinate responses to
disruptions. According to a 2023 Accenture report, 70 per cent of companies using cloud-based collaboration tools reported a 15 per cent improvement in their ability to manage supply chain risks.
Technology is profoundly impacting your supply chain processes, transforming how you operate and compete in today’s global marketplace. By enhancing efficiency, improving visibility, and increasing resilience, technology is helping you build smarter, more agile, and more sustainable supply chains.
As digital tools continue to evolve, their role in supply chain management will only grow, offering new opportunities for innovation and growth. By embracing these technologies, you’ll be better positioned to navigate future challenges and capitalise on new opportunities.
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