Tag: supply chain and logistics technology
Artificial Intelligence (AI) evolved from a concept of science fiction to a transformative force that permeates our daily lives. From autonomous vehicles to voice assistants, AI has already made significant inroads in various sectors.
However, one area that stands to gain immensely from AI’s potential is the supply chain. As the backbone of global trade, the supply chain encompasses complex networks and intricate logistics. It is an ecosystem where efficiency, accuracy, and agility can make or break success.
With its vast array of applications, AI has the potential to streamline operations, enhance decision-making, and unlock untapped opportunities. In this journey through AI’s rising capabilities, we will delve into real-world use cases that demonstrate how AI is revolutionizing the supply chain. Furthermore, we will also explore the specific benefits that AI brings to the supply chain domain.
Role Of AI Optimizing the Supply Chain
Every business owner dreams of a supply chain that is finely tuned, seamlessly efficient, and adaptive to every twist and turn of the market. A business where warehouses run like clockwork, shipments arrive precisely on time, and customer demands are anticipated with uncanny accuracy is not a far-fetched dream; it’s a reality being shaped by the game-changing role of Artificial Intelligence (AI) in optimizing supply chain operations.
At the heart of AI’s transformative influence are three key components that work in harmony to revolutionize the supply chain landscape. Let’s uncover their captivating role in reshaping the future of supply chains.
- Machine Learning and Predictive Analytics: Machine learning and predictive analytics in the supply chain are like having a trusted, experienced mentor by your side, whispering valuable insights and guidance into your ear. Machine learning algorithms analyze vast amounts of historical data to uncover patterns, trends, and potential pitfalls.
- Natural Language Processing and Chatbots: Natural Language Processing (NLP) allows you to simply ask a question about your supply chain and receive instant, accurate answers. With a chatbot available 24/7, customers can get instant responses, while supply chain teams can focus on strategic decision-making.
- Robotics and Automation: Robots, equipped with advanced sensors and AI algorithms, can perform repetitive tasks with unmatched precision and speed. From inventory management to order fulfillment, these tireless machines streamline operations, reduce errors, and enhance efficiency.
How AI Solves Supply Chain Challenges
The world of supply chain management is like a complex maze with numerous challenges at every turn. Thankfully, AI emerges as the trusty guide, equipped with the tools to solve some of the most daunting hurdles. Here are some for your reference:
1. Demand Forecasting and Inventory Optimization: This AI-powered assistant acts as your supply chain ‘savant,’ it understands your historical consumption patterns, market trends, and even factors like seasonality or promotional events.
2. Supplier Selection and Relationship Management: Choosing the right suppliers and maintaining strong relationships is like finding the perfect dance partner. AI steps in as a knowledgeable matchmaker. By analyzing vast amounts of supplier data, performance metrics, AI algorithms can assess and rank potential suppliers based on criteria such as reliability, quality, and cost.
3. Warehouse and Inventory Management: AI acts as a vigilant warehouse manager, optimizing layout, guiding picking and packing processes, and even predicting optimal storage locations. With AI-powered systems, warehouses can maximize space utilization, minimize errors, and accelerate order fulfillment, resulting in streamlined operations and satisfied customers.
4. Transportation and Logistics Optimization: AI takes on the role of coordinator who has a bird’s-eye view of the entire transportation network, utilizing algorithms to analyze real-time data on factors like traffic, weather conditions, and delivery constraints. By optimizing routes, load planning, and vehicle assignments, AI enables efficient transportation management.
5. Quality Control and Defect Detection: Think of a diligent quality inspector who never misses a flaw in a product. AI becomes this meticulous inspector, utilizing computer vision and machine learning algorithms to analyze visual data and detect defects with remarkable accuracy.
6. Risk Management and Supply Chain Resilience: AI plays this vital role just like a risk management expert. It analyzes a wide range of data sources to identify potential risks and vulnerabilities, ensuring supply chain resilience in the face of uncertainties.
7. Customer Service and Satisfaction Enhancement: AI takes on the role of a customer service representative who can swiftly address customer inquiries, provide accurate information, and resolve issues with ease. AI-powered customer service tools offer instant responses, personalized recommendations, and seamless assistance, enhancing customer satisfaction and loyalty.
Watch: Artificial Intelligence – how to navigate AI if you are not a tech company.
Remarkable Real-world examples of AI in the Supply Chain
AI transforms supply chain management like never before. Don’t take our word for it. See it in action as implemented by big players in the industry:
Use Case 1: Precision Prediction by Amazon
Problem: Traditional demand forecasting and inventory management methods often struggle to predict customer demands and optimize inventory levels in real-time accurately.
Solution: To address this challenge, Amazon has harnessed the power of AI algorithms to revolutionize demand forecasting and inventory management. By analyzing vast amounts of customer data, historical sales patterns, and even external factors like weather forecasts, AI algorithms can accurately predict demand with remarkable precision.
This AI-driven approach allows Amazon to optimize inventory levels, ensuring that popular products are readily available while minimizing excess inventory and reducing the risk of stockouts. By aligning supply with demand, Amazon is able to enhance customer satisfaction and maintain a competitive edge in the dynamic e-commerce landscape.
Use Case 2: Substitution Solution by Walmart
Problem: In online grocery shopping, customers often encounter situations where certain items they ordered are out of stock. This can lead to dissatisfaction and inconvenience, as customers may have to manually search for suitable substitutes or go without the desired product.
Solution: To address this issue, Walmart has implemented an AI-driven product substitution system. Using advanced algorithms, the system analyzes product attributes, customer preferences, and available inventory data to suggest suitable substitutions for out-of-stock items.
When an ordered item is unavailable, the AI system automatically identifies the best possible substitute based on factors such as brand, size, price, and customer feedback. It takes into account the customer’s past purchase history and preferences to make personalized recommendations. The system provides clear and transparent information to customers, ensuring they are aware of the substitution and have the option to accept or reject it.
Use Case 3: Real-Time Routing by UPS
Problem: Traditional route planning methods often struggle to optimize delivery routes efficiently, resulting in inefficient use of time, resources, and fuel.
Solution: UPS leverages AI algorithms for route optimization, enabling them to analyze real-time data on factors such as traffic patterns, delivery constraints, and even weather conditions. By considering these variables, UPS can generate optimal delivery routes that minimize distances, reduce fuel consumption, and optimize delivery time.
Through the implementation of AI in its logistics operations, UPS achieves significant cost savings, improves delivery efficiency, and reduces its carbon footprint. This AI-driven approach allows UPS to stay ahead of the competition and provide exceptional service to its customers.
Use Case 4: Valuable Vending by Coco-Cola
Problem: Traditional vending machines often lack the ability to gather real-time data on customer behavior and gauge the effectiveness of different brands and product offerings.
Solution: To overcome these limitations, Coca-Cola has implemented AI-enabled next-gen vending machines. These machines are equipped with advanced sensors, cameras, and AI algorithms that gather real-time data on customer behavior, purchasing patterns, and brand preferences.
With this newfound understanding, Coca-Cola can optimize product placements, tailor offerings to specific locations, and develop targeted marketing campaigns. Furthermore, the AI-enabled vending machines also allow Coca-Cola to remotely monitor inventory levels, predict demand patterns, and optimize restocking schedules. This ensures that the vending machines are always well-stocked with popular products, reducing the likelihood of stockouts and maximizing sales opportunities.
Use Case 5: Wonder Warehouses by Alibaba
Problem: Traditional warehouse management practices often face challenges related to inefficient storage utilization, suboptimal picking processes, and delays in order fulfillment.
Solution: Alibaba has embraced AI technology to develop smart warehouses that leverage automation, robotics, and AI algorithms. These AI-enabled warehouses optimize storage utilization, streamline picking and packing processes, and enable efficient order fulfillment.
Through the integration of AI, Alibaba achieves faster and more accurate inventory management, enhances warehouse operations, and improves overall efficiency in its supply chain. This innovative use of AI allows Alibaba to meet the demands of the e-commerce market and deliver exceptional service to its customers.
Checkout out our Infographic: Successful Logistics and Warehouse Management Practices.
Solid Supply Chain Solution with AI by Fingent
Advancements in AI technologies continue to shape the supply chain landscape, with machine learning algorithms becoming more sophisticated, natural language processing capabilities evolving, and robotics and automation becoming increasingly intelligent and adaptable. These advancements enable businesses to make data-driven decisions, automate repetitive tasks, and optimize operations like never before.
At Fingent, we understand the immense potential of AI in supply chain management and are committed to helping businesses harness its power. Our expertise lies in developing innovative AI solutions tailored to specific industry needs, integrating AI with emerging technologies, and driving digital transformation in the supply chain.
Whether it’s building intelligent forecasting models, implementing AI-powered automation, or leveraging AI-driven analytics, Fingent is dedicated to empowering organizations to thrive in the AI-driven supply chain landscape.
Businesses that embrace its potential will gain a significant competitive advantage. By leveraging AI technologies, integrating with emerging technologies, and partnering with experienced custom software solution providers like Fingent, organizations can unlock new frontiers of efficiency, innovation, and success in the dynamic world of supply chain management.
Reach out to us to get the best supply solution for your business.
SAP S/4HANA is a catalyst for business success, weaving its transformative power across the ERP landscape. SAP S/4HANA is more than just any software; it’s a realm of possibilities. It is like a digital fortress that integrates and orchestrates your supply chain, ensuring harmony and efficiency throughout your organization.
With a single source of truth, it empowers organizations to make informed decisions based on accurate, up-to-the-minute insights. It’s like having a trusted compass that illuminates the hidden paths of your operations, empowering you to confidently navigate the ever-changing terrain of the business landscape.
Understanding SAP S/4HANA – A Visionary Leap Into The Future
SAP S/4HANA is not your ordinary ERP solution. It harnesses the power of in-memory computing, real-time analytics, and a simplified data model to deliver a seamless and intelligent ERP experience. It is a technological marvel that blends speed, agility, and simplicity into a single transformative platform.
The shift from traditional SAP ERP systems to SAP S/4HANA marks a significant milestone in the ERP landscape. It represents a move from a row-based data model to an in-memory, columnar-based data model, resulting in lightning-fast data processing and real-time analytics.
With the transition to SAP S/4HANA, businesses unlock a plethora of benefits. They gain real-time insights for faster decision-making, simplified processes for improved efficiency, and intelligent technologies for enhanced automation and predictive capabilities. It’s like upgrading to a futuristic command center that propels your business into a new realm of success.
Let’s begin by unveiling the key features and capabilities that make SAP S/4HANA shine.
- It brings the power of real-time insights, allowing businesses to make decisions based on up-to-the-minute data.
- SAP S/4HANA simplifies processes, reduces data redundancies, and eliminates complexities to streamline operations.
- It leverages advanced technologies such as artificial intelligence (AI), machine learning, and predictive analytics to unlock automation, insights, and predictive capabilities.
Read more: A Beginner’s Guide To Implementing SAP S/4HANA
Key Benefits of SAP S/4HANA
1. Grasp The Pulse of Your Business at Any Given Moment with Real-Time Analytics.
With its in-memory computing capabilities, SAP S/4HANA processes massive amounts of data in real-time, allowing for faster and more responsive operations. With real-time analytics, you have the power to respond swiftly to changing market dynamics, identify emerging trends, and seize opportunities before they fade away. It’s like having a nimble and swift chariot that propels your business forward, helping you stay ahead of the competition.
2. Enthralling User Experience
SAP S/4HANA’s intuitive interface and personalized dashboards transform ERP navigation into a delightful journey. It’s like stepping into a realm of effortless elegance, where tasks are completed with grace and efficiency, where your teams can work seamlessly, unlocking their full potential and driving productivity to new heights.
3. Declutter Your Landscape with a Simplified Data Model
SAP S/4HANA can help you bid farewell to the tangled webs of complexity and data redundancies. It enables you to declutter your business landscape, allowing you to focus on what truly matters—innovation and growth. With a simplified data model, your organization gains agility, flexibility, and the ability to adapt swiftly to changing business needs.
Now that you are aware of the business benefits let’s discuss how you can prepare for SAP S/4HANA implementation.
Prepare For SAP S/4HANA Implementation
With the right foundations in place, organizations can embark on their SAP S/4HANA implementation with confidence, ready to unlock the full potential of this transformative platform.
1. Assessing Business Readiness:
Assessing the organization’s readiness for SAP S/4HANA implementation is like taking stock of your supplies before embarking on a grand expedition. Evaluating data readiness ensures that your information is accurate, complete, and compatible with the new system. Additionally, allocating resources appropriately – including skilled personnel and budget – ensures that you have the necessary support to navigate the implementation journey smoothly.
2. Building the Implementation Team:
On a voyage, each member has a vital role to play. Project managers steer the entire implementation process. Functional consultants bring their expertise in specific business areas, ensuring that SAP S/4HANA meets your unique requirements. Technical experts handle system configurations, integrations, and customizations. Together, this cross-functional team brings together diverse perspectives, fostering synergy and ensuring that all aspects of the implementation are addressed comprehensively.
3. Chart your Course by Defining Implementation Goals and Scope:
Defining clear goals and scope for the SAP S/4HANA implementation provides a clear direction and prevents aimless wandering. By identifying key business processes, you prioritize areas that will benefit most from the new system. This focused approach optimizes time and resources enabling effective project planning and increasing the likelihood of a successful SAP S/4HANA implementation.
Six Phases of SAP S/4HANA Implementation
Each of the following well-defined phases of the SAP S/4HANA phase brings your organization closer to harnessing its and unlocking new levels of efficiency, agility, and competitive advantage:
Phase #1 Project Planning and Preparation:
Planning and preparation are like laying the foundation for a solid structure. Activities in this phase include creating a detailed project plan, establishing timelines, and defining deliverables. By clearly outlining project objectives, tasks, and responsibilities, organizations ensure a structured and well-organized implementation process.
Effective stakeholder communication is vital during this phase, keeping everyone informed and engaged. Change management strategies are implemented to address any resistance to change, ensuring the smooth adoption of SAP S/4HANA.
Phase #2 System Installation and Configuration:
System installation and configuration start with assessing hardware requirements and designing the system landscape, ensuring optimal performance and scalability. The SAP S/4HANA system is then installed, configured, and integrated with other systems, creating a cohesive IT ecosystem. This phase requires careful consideration of factors like network infrastructure, security, and software installation.
Phase #3 Data Migration and Conversion:
Data migration and conversion are like transferring belongings to a new home. Legacy data is extracted, transformed, and loaded into the SAP S/4HANA system. This process involves data cleansing, eliminating duplicates, and ensuring data accuracy. Data validation is crucial to verify the integrity and consistency of migrated data.
Phase #4 Customization and Configuration:
This phase is like arranging furniture in a new space. Configuration involves setting up master data, defining workflows, and configuring system functionalities. This phase ensures that SAP S/4HANA aligns with the organization’s unique processes, enabling efficient operations and improved user experience.
Phase #5 Testing and Training:
Testing and training form the backbone of a successful SAP S/4HANA implementation. Thorough testing is conducted to validate the system’s functionality, performance, and data accuracy. This includes unit testing, integration testing, and user acceptance testing.
Training programs are designed to equip end-users with the necessary skills and knowledge to effectively utilize SAP S/4HANA.
Phase #6 Go-Live and Post-Implementation Support:
Going-live is like opening the doors to a new facility, enabling users to work with real data. Post-implementation activities include monitoring system performance, addressing user feedback, and providing ongoing support. Continuous improvement initiatives and enhancements are implemented based on user experience and evolving business needs. Regular system maintenance and updates ensure the system’s optimal performance and long-term success.
These are some best practices and lessons learned from previous SAP S/4HANA implementations. They offer valuable insights that can guide your organization toward successful implementation. These can help you avoid common pitfalls and maximize the benefits of SAP S/4HANA.
Read more: A Simple Guide To Handling Common SAP Errors and Troubleshoots
Strategies You Can Use to Overcome Common Challenges
Challenges during SAP S/4HANA implementations can vary, but some common ones include data migration complexities, resistance to change, resource constraints, and technical integration issues. To overcome these challenges, organizations should:
- Engage experienced consultants and leverage their expertise.
- Invest in data cleansing and migration tools to streamline the process.
- Prioritize change management activities and communicate the benefits of SAP S/4HANA.
- Allocate sufficient resources and budget for implementation and post-implementation support.
- Collaborate closely with SAP experts and leverage their guidance and best practices.
- Monitor the implementation progress regularly and adapt the plan as needed.
How Can Fingent Help?
Fingent can provide comprehensive services to deploy SAP S/4HANA for better supply chain management. We at Fingent offer consulting services to assess your supply chain management requirements and design a customized SAP S/4HANA implementation strategy. Our advisory services provide expert guidance on how to optimize your operations and drive digital transformation.
Are you currently using an older version of SAP ERP? If so, we can analyze your existing system, assess the impact of the conversion, and guide you through the conversion process.
Fingent leverages SAP Leonardo’s intelligent technologies, such as machine learning, IoT, and analytics, to enhance your supply chain management processes. With our expertise in SAP S/4HANA and supply chain management, we can guide you through the entire deployment process, from strategy and implementation to ongoing support.
Reach out to us, and let’s work magic for you.
The onset of globalization has encouraged business operations on an international scale. It offers companies the opportunity to reach new customers in new markets. Exposure to unknown markets and sometimes even known markets can expose businesses to greater competition and greater risk. However, efficient management of the supply chain can do away with many of these risks and put you on the path to success.
The challenges in the supply chain can include being unsure of the reliability of your suppliers, and their quality, cost, lead time, lot size, and more. Your business will surely profit if you had a way to monitor your supplies and the risks to your business.
Yes, clear visibility is crucial.
This is where custom software can benefit your business!
Custom software equips you with a way to collect, organize, and monitor the supplier-related information that is most meaningful to your business. This blog discusses which functions of the supply chain can be better managed with custom software and also talks about the benefits this can bring to your business.
Why Is Customized Supply Chain Management Software Important?
Efficient management of the supply chain depends primarily on data gathered at each stage of the supply chain process. The success of the business hinges on the way companies use those insights to make decisions that optimize demand, supply, inventory, and deliveries.
That is why custom software is essential to managing the supply chain. Custom software can enable organizations to make better use of their data as it gives structure to the information already in their possession.
Through the use of custom software solutions, companies can identify faults in their supply chain process. Such visibility can help them make better inventory decisions or inform their customers of the shipping status for their confirmed orders.
Essentially, custom software is instrumental in improving business operations and relationships with both customers and suppliers.
Read more: Build or Buy Logistic Software: An End To The Prolonged Discussion
Manage Key Supply Chain Functions with Custom Software
Every business is unique in its functions. A software can address the specific company challenges only when customized and tailor-built after crucially analyzing the workflows and industry pain points. Here are a few to look into.
- Raw material acquisition: Supply chain management is a journey, and purchasing is at the beginning of that journey. Purchasing includes sourcing raw materials and other resources. Custom software enables smooth coordination with suppliers to deliver the material without any delays requires.
- Planning and forecasting: The operations team must anticipate the possible market demand and the number of units for production. Over-anticipated demand can result in excess inventory costs. If it is underestimated, then the company will not be able to meet its customer demand and thus lose revenue. Custom solutions for planning and forecasting can help the operations team to anticipate demands more accurately.
- Warehouse arrangement: Supply chain management requires warehouse arrangements till it is shipped for delivery. If the products are delivered outside the country or state limits, there will also be a need for outstation warehouses. Custom software can optimize logistics to reach end-point delivery without any glitches.
Advantages Of Custom Software in Supply Chain Management
1. Increased transparency throughout the supply chain
Knowing exactly where your item is at any given time is important for all businesses as it allows you to sell the item before it even reaches your warehouse. Custom software can help you sell this way because it can pinpoint the exact location of your item and the time that it will reach your warehouse.
This will allow you to provide a guarantee to your customer that he will receive the product he purchased. Streamlining the supply chain will help achieve faster response times and increase customer loyalty.
2. Efficient inventory management
With the help of custom software, you can sell your item while it is on the move or as it is in the making. It can help you estimate how many items you must produce, eliminating excessive production.
3. Supplier management
You can keep a good relationship with your suppliers with custom software. Real-time data will allow you to know if you are running out of stock or if your tools and equipment need repair or replacement. This data will help you contact your suppliers immediately and thus minimize any potential delays.
You will also have details such as account receivables and other information at your fingertips when dealing with your suppliers. This will ensure that you are up to date with payments and discounts. As a result, you notice that your communication and cooperation with dealers and vendors improve considerably.
4. Streamline Processes
Custom software will create highly streamlined processes for supply chain management, especially for businesses that operate from different locations across the globe.
Fully customized software enables companies to accumulate all business data in one centralized location. Employees greatly benefit from this as they can now gain access to the latest versions of data, even if they are accessing it from multiple locations or branches.
5. Un-bottleneck your supply chain
Bottlenecks in the supply chain are a direct result of the ineffective system in place that does not allow teams in different locations to communicate and align statuses to fulfill overall objectives. Companies that experience such bottlenecks miss opportunities and lose customers because they are unable to provide what their customers want.
An unsatisfied customer walks out on you and straight into the open arms of your competition. If you are beginning to notice lower satisfaction rates, numerous complaints, or bad reviews from the customers, it is time to explore custom software that can give you a business-targeted approach to customer experience.
When a business looks to meet or exceed customer demands, they have to rely heavily on its supply chain. Internal bottlenecks can slow down the entire process and risk order fulfillment. To prevent such bottlenecks, a business must understand what causes them and how to prevent them.
Custom software can help a business identify such bottlenecks and thus help efficiently manage the supply chain.
Save Money, Time, and Your Business!
It is clear that custom software comes with many benefits. It is also obvious that it saves money with time. While off-the-shelf software may come with a lower initial cost, investing in custom software will give more benefits to the supply chain management cycle. It improves sales functions and boosts productivity.
Custom software that is fully optimized to the supply chain will improve business function in a way no off-the-shelf software can. Fully optimizing the supply chain process can be lean and seamless through the use of custom software. If the business growth process is left unchecked by the off-the-shelf software solutions it can become highly chaotic. Custom software gives companies a higher level of control over all supply chain operations while taking control over the growth process.
A company that is digitally driven by custom software automatically enables a more proactive and open business. If this is what you want for your business, give us a call.
Our experts at Fingent thrive on creating custom solutions for our clients. They will be happy to talk through the game plan with you and show you how your business can excel with custom software for your supply chain.
The COVID-19 pandemic has created an imbalance between the supply and demand of the goods thereby disrupting the supply chain globally. That said, it has also amplified the need for technology tools to manage the supply chain challenges as the possibility of lockdowns in the future can’t be overlooked.
With the increasing demand for autonomous solutions, it is not surprising to see companies investing in supply chain technologies. According to Gartner, by 2023, 50% of the global eCommerce companies will invest in the real-time supply chain, AI, and advanced analytics solutions.
Challenges in the Supply Chain
1. Labor and material shortages
2020-21 witnessed several layoffs and quarantine putting the market in flux globally. Leaders not only face delegation woes but also find staffing key positions within procurement and supply chain ops problematic. Leaders will have to rely on technologies and automation to create cohesion and shift focus to smaller more concentrated procurement teams.
According to the Institute of Supply Chain Management report, every key commodity is either scarce or up in price leading to shortages and complexities to supply chain management. In other words, the material shortage will continue and companies can expect persistent problems through 2022.
2. Rising freight costs
In 2021, trucking and intermodal transport shot to new highs while spot prices doubled across the board: van (+18%), reefer (+25%), flatbed (+27%). Additionally, sea freight price and air freight price skyrocketed as well making it difficult to move freight in any capacity.
Thus, fluctuation in freight price will remain one of the biggest challenges the supply chain industry will have to face in coming years.
3. Port congestion
In the last two years, there have been wait times for ships headed into ports across the world. In October 2021, over 50 container ships were amassed outside Los Angeles and Long Beach to unload cargo from China. That said, gridlock especially at overseas ports creates delays as ships look to obtain cargo. So, bottlenecks at both ends cause additional lead time for import-export operations ultimately disrupting the domestic supply chains.
While port congestion isn’t a new problem, according to The National Customers Brokers & Forwarders Association of America (NCBFAA), 2022 could see historic wait times and supply chain bottlenecks.
4. Problems related to demand forecasting
While the global shutdown in 2020 skewed supplier data to a great extent, 2021 saw some recovery making the data relatively unreliable as a standard for future forecasting. This has resulted in no proper benchmark for supply chain leaders to follow.
As the unprecedented demand grows, meeting it remains a challenge. So, supply chain leaders will have to rely on trending data to predict the year considering the previous benchmarks for everything from inventory to budget and pricing.
Read more: Logistics Management Software – Everything You Need To Know!
While this adjustment is completely different for those who rely on the last two to three years trailing data to estimate demand forecasting, it is a challenge that requires forethought.
Here are five technologies that will help advance your business in 2024:
1. Robotic Process Automation (RPA)
According to Deloitte, RPA will see strong growth in the next five years specifically in the supply chain operations that include lower-value, potentially dangerous, or high-risk tasks. Robotic technology applications include trains and trucks, automated vehicles like drones, last-mile deliveries, and storage and retrieval systems (ASRS).
The use of RPA can achieve the following objectives:
- Improve productivity and efficiency
- Reduce re-work and risk rates
- Increase employee safety
- Perform repetitive and mundane tasks so humans can work more useful tasks
- Increase revenue by improving order fulfillment and delivery speed
New pricing structures are helping companies consider investing in automation. That said, the RaaS (Robotic and a Service)-type model allows providers to lease units through a monthly service contract instead of customers paying a huge capital up-front.
2. Cloud computing and AI
As supply chains generate big data, cloud-based AI can be used to turn that data into insights. Cloud computing along with AI has transformed the way the supply chain operates and in near future its abilities will only grow in complexity.
Cloud and AI systems can use past trends and market indicators to achieve the following processes;
- Powering automation process
- Informing supplier selection
- Providing real-time information on shipments
- Analyzing carrier performance
- Streamlining supplier onboarding and automating supplier management
- Anticipating trends in operational issues
- Augmenting customer support
Read more: How to accelerate your business growth with Robotic Process Automation
3. IoT
Asset tracking through IoT will help save time and money and assist data-driven decision-making.
Through GPS tracking of shipments and monitoring parcel conditions, IoT devices have improved quality management in the supply chain. RFID chips, mobile sensors, and smart devices can track and authenticate products, humidity, light levels, measure temperature, handling, movement, speed, and other environmental factors of shipments.
Additionally, IoT facilitates new fleet management solutions development which helps improve workflows and customer satisfaction. Also, IoT in the future will reduce the total cost of ownership and make the entire supply chain industry more connected, driven by legislation and customer demand.
Adoption of IoT will also improve security and decrease the probability of piracy, disruption of refrigeration, and container damage.
4. Blockchain
Emerging technology in the supply chain industry, blockchain’s decentralized digital ledger can help improve transparency for customers. This will enable them to track the whole journey of a product before arrival. Additionally, blockchain can increase transparency in audits and improve security by revealing any attempted fraud. Blockchain can help increase the level of trust and make digital payments more secure.
Blockchain systems can also save time and money due to better coordination of documents and eliminate the need for physical paperwork.
5. Transportation Management System (TMS)
All of the above-mentioned technologies need to be organized and managed from a single point. That is where TMS applications complications come into the picture.
TMS is used to manage carriers, and help convert paper-based documentation into a digital format. It will reduce freight costs, track deliveries in real-time, and increase transparency which will eventually improve customer service. Simply put, TMS will help make all the separate elements work as a single system.
TL Nika Logistics is a prime example of successful TMS adoption.
Final thoughts!
There’s no denying that technological innovation is propelling supply chain management solutions. If you are looking to embark on this technical journey, Fingent custom software development experts is the right partner for you. We understand the latest advancements in supply chain technology and help organizations adopt these emerging solutions while gradually replacing legacy systems to help navigate better in this competitive business landscape.
Connect with us today!