“The
first rule of any technology used in a business is that automation applied to
an efficient operation will magnify the efficiency. The second is that
automation applied to an inefficient operation will magnify the inefficiency.”
Every industry undergoes changes in their trends and their workings.
Let’s see a few of the pressing changes in the supply chain industry
#1:
Supply Chains will look to Go Digital
Technology has
driven a new wave of productivity by digitizing key financial and business
processes and enabling collaboration across the organization. This 2016 supply
chain trend will continue as best-in-class organizations leverage business
networks to create a digital
community of partners executing coordinated processes in a more
organized and informed way than in the past.
#2: Responding
to Innovation & Change but with an Eye on Fundamentals
The ability to
accept innovations and take advantage of the synergy effects of individual
movements is a core competence of future-oriented companies. Not losing sight
of the essentials while filtering out what is personally important, requires
our full attention and continual development. Nevertheless, we reach our limits
time and again and need support, e.g. from operations research, which provides
us with intelligent decision-making algorithms enabling us to keep up with
today’s fast-paced operating environment.
Advances in
technologies available to optimize supply chains have made faster
implementation times a reality
#3:
Augmented Reality
DHL (a famous
Logistics company) says AR is the future to SCM and its co- activities
DHL looks at the
following ways Augmented Reality will provide benefits to the supply chain as
listed:
·
Picking Optimization
·
Facility Planning
·
Freight/Container Loading
·
Dynamic Traffic Support
#4: Artificial Intelligence
Huge
Investments being made in Artificial Intelligence by many companies including
Facebook, Google, Apple, Tesla, and many many more companies. Machine vision
and robotics are already in use around us, most notably in industrial
applications, including the warehouse, as well as facial recognition systems
used by law enforcement.
And
further, that advent of Industry
4.0 and Smart Factories all
powered by the Internet of Things will make running a supply chain as
easy as pushing buttons (of course this all means it was set up correctly!).
The use of Artificial Intelligence seems almost endless, but be on the lookout
for some serious applications in the supply chain for 2016.
#5: Agile = The New Lean
Agile methodology is
an alternative to traditional project management, typically used in software
development. It helps teams respond to unpredictability through incremental,
iterative work cadences, known as sprints. Agile methodologies are an alternative
to waterfall, or traditional sequential
development.
#6: Procurement’s New (read Bigger) Role in the Supply
Chain
Think
purchasing & procurement and often what comes to mind is the struggle or
battle to make a supplier give you materials or services for the lowest amount
of money possible.
GE
is deploying strategies like purchasing small suppliers that provide critical
parts or services. None of those strategies work without a strong procurement
practice that is integrated with other supply chain processes.
#7: Collaboration Continues to Take Center Stage for
Efficient Supply Chain Management
Speaking
of supplier collaboration, many companies have taken steps to improve the
efficiency and effectiveness of their supply chain operations by automating key
processes beyond procurement to areas such as with orders, invoicing, and
payment. This is with good reason backed by data.
Thank you
VARUN S
varunsc1794@gmail.com
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