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Overcoming Supply Chain Challenges Using Technology

Overcoming Supply Chain Challenges Using TechnologySupply chains are the backbone of many industries, but they’re also the Achilles’s heel. Anything could happen–shortage of raw materials, global shipping delays, even labor strikes. Every business around the world knows how frustrating supply chain challenges can be. 

Yet, thanks to the fast technology development, overcoming these obstacles is more possible than ever. In the course of the last decade, the supply chain management software and procurement market expanded more than twice. As of late, the size of the global supply chain management market is worth 16 billion US dollars. 

So, technology must be doing something right for supply chain development, right? Now we have AI-driven analytics, IoT devices tracking cargo in real-time, and many more advantages.

I’m sharing about overcoming supply chain challenges using technology because I’m a bestselling entrepreneur and author and founder of the program: How To Make Profitable Courses – Without The Overwhelm. I love to help individuals and companies to be more successful.

What challenges supply chains face today 

Do we really understand the magnitude of the challenges supply chains face? These hurdles have only increased over the years due to factors like globalization, consumer demand for faster delivery, and competition. 

The ever-shifting demand for products can leave companies with excess inventory or, worse, unable to fulfill customer orders. Natural disasters, port congestion, or even geopolitical tensions can slow down or completely halt the movement of goods. 

Companies must balance just-in-time inventory models with the risk of stockouts, which is a tricky balancing act. Relying heavily on a single supplier or region for critical components can only increase vulnerability. 

As of recently, everybody (customers and governments alike) would like companies to accept eco-friendly practices. But integrating sustainability into the supply chain adds a layer of complexity. 

Another feature everyone would like to see in supply chains is transparency. Having visibility into each stage of the supply chain is important, but many companies can’t do that due to outdated systems and silos of data. 

Now let’s take a look at how these challenges can be solved.

Data analytics and big data

Supply chains generate a tremendous amount of data. You can find their shipping logs, customer orders, and inventory levels, among all data. However, many companies are sitting on this goldmine of information without fully leveraging it. That’s where data analytics and big data come in.

Analytical tools allow companies to go through massive amounts of data to identify patterns, trends, and inefficiencies. For instance, an advanced management system for fleets can let you simplify fuel data collection, improve accuracy and reduce time to insight with a modern fuel management solution. This can help you make better decisions about inventory management, transportation routes, and supplier performance. 

For instance, analytics can discover which suppliers consistently deliver late or which routes can lead to delays. Once you know what might go wrong, you can take action and correct what needs correcting. 

Not to forget that you can combine big data analytics with AI to make predictive models. This will let your business anticipate potential disruptions, like a sudden shortage of raw materials or a labor strike in a key region.

How to manage flow and transparency? 

At first glance, supply chains and consent seem worlds apart. Still, they share a common thread of managing flow and ensuring transparency. 

Just like a supply chain moves products and information through various stages to deliver goods to customers, businesses deal with personal data through multiple stages. That handling requires clear consent at every step. This is where the best consent management platforms (CMPs) come into picture. They have the power to collect, manage, and securely store your customers consents and data. 

CMPs are there to make sure that companies stick to privacy regulations like GDPR and CCPA. These platforms track user consent for data processing, and that can help your company to stay compliant while being transparent to customers about how their personal data is used. 

AI and machine learning 

If there’s one technology that’s making the greatest change in supply chain management, it’s artificial intelligence (AI) and machine learning. In the past, demand forecasting often involved guesswork (intuition, coin flips, fortune tellers, and such). Historical sales data might tell you what happened last year, but it won’t help when there’s a sudden surge in demand.

AI can analyze vast amounts of data–from social media trends to weather patterns–to predict customer demand with incredible accuracy. You can use machine algorithms and move from reactive supply chain management to a proactive approach.

For example, if a sudden spike in sales for a particular product is expected, AI-powered forecasting tools can automatically notify procurement teams, so they can stock up on needed supplies ahead of time. 

Overcoming Supply Chain Challenges Using Technology

Internet of Things (IoT) and real-time tracking 

IoT makes wonders in revolutionizing supply chain management. It provides real-time tracking of goods. That could be done through RFID tags on individual products or GPS sensors on shipping containers. 

Real-time tracking does more than just let you know where your shipment is–it can also provide insights into potential disruptions. For instance, some sensors can detect if perishable items are being stored at the wrong temperature, so you can take action before goods are spoiled. 

Also, real-time data improves decision-making. If a shipment is delayed, you can reroute resources, notify customers, and minimize the impact on operations. 

The role of blockchain 

Blockchain may have started with cryptocurrency, but it’s increasingly being applied to supply chain management. As we said before, one of the biggest lack of supply chains is the lack of transparency. It’s just that, when multiple suppliers, manufacturers, and logistics providers are involved, it’s difficult to have a single source of truth. 

While supply chains use blockchain, every party involved can see the status of an order or shipment. This is a particularly welcome feature in industries like food and pharmaceuticals, where safety and quality are a must. For instance, if you have a drug that needs to be transported in a cold chain, which means that the product must remain under a certain temperature all the time or it won’t be effective, it’s great that you can track it from lab to patient and make sure that everything is handled according to industry standards. 

Efficiency on steroids 

Automation is no longer limited to manufacturing plants. Today, it’s playing an important part in streamlining supply chain operations. Automation can take many forms, from robotic process automation (RPA) in warehouses to autonomous vehicles for deliveries, in some cases even drones. 

In warehouses, automated picking and packing robots can drastically reduce labor costs and errors. These robots can operate 24/7 without breaks, so the speed and accuracy of order fulfillment is improved. 

On the transportation side, autonomous tracks and drones are already being tested for deliveries. While we’re not quite at the stage where robots are handling everything, the trend is clearly moving in that direction.

And when it comes to the boring part, automation also helps with document processing. Many people don’t appreciate doing the paperwork (just think about the amount of invoices, purchase orders, and contracts), and they don’t thrive on repetitive jobs. But by automating these tasks, you can speed up operations while reducing the potential for human error. 

Cloud computing 

Cloud-based supply chain management systems make real-time collaboration all around the world possible. In the past, supply chain data was often stored in on-premise systems and that made it difficult to share information across teams or with external partners. 

But with cloud computing, everyone involved can access up-to-date information from any device, anywhere in the world. This improves communication and coordination between suppliers, manufacturers, and logistics providers. 

With cloud platforms you can also have scalability, which is particularly useful if you experience seasonal fluctuations in demand. During peak times, additional resources can be easily added, and during slower periods, you can scale back to save costs. 

The best part of this system is that it’s a lot more secure than on-premise systems. This is because cloud providers invest heavily in security measures like encryption, firewalls, and regular updates. 

robots

The road ahead

The integration of technology into supply chain management is still in its early stages, but it’s giving so much already. The technology already in use, like AI, IoT, and blockchain, is always evolving, there’s a possibility that supply chains will evolve with them as well. 

Companies that go with these technologies will be better equipped to handle various kinds of challenges–disruptions, efficiency improvement, and the ever-increasing demands of consumers. On the other hand, those that hesitate to adapt may find themselves falling behind in an increasingly competitive global market. 

All in all, adopting the latest technology isn’t the only step you need to take–it’s also how you use it. So, be strategic, build more resilient, agile, and transparent supply chains.

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