Supply chains are currently undergoing stormy development. The accessibility of digital solutions has improved significantly over the past year.It is still true that productivity, reliability and quality are leading when controlling supply chains. Due to the increasing unpredictability of the market, the critical function has only increased. Digitalisation does ensure that more will become possible. From insight to foresight.
Customer interaction
New developments in web interaction, such as the deployment of chatbots, are making it faster and easier for customers to find your products. Algorithms are already ensuring that key defects have been fixed. Also, web analytics tools can better track what your customer sees, which pages and length of time. This information can be used to get even more out of your web traffic than before, without the need for expensive coding of websites.
Machine learning
Machine learning is a technique that uses Artifical Intelligence to 'teach' a computer certain tasks. For example, this can cause a computer to recognise certain invoices that were normally considered exceptional. But machine learning can also take over picking tasks in the warehouse, or recognise defective products in the warehouse.
More and better solutions are coming onto the market that are also accessible to SMEs. Many startups, often with support from Asian countries, are offering these services.
Technology
One notable development is that of 3D printing. Great strides have been made with this technology. It allows companies to print parts and speed up the process of product development. Robotics will continue to take over more and more tasks. From picking products, to sorting and assembling packages. The intelligence behind robotics combined with a state-of-the-art WMS will ensure that more and more warehouses move towards 100 per cent automation and robotisation. Augmented and virtual reality will further contribute to this. Processes can be further streamlined and will lead to strategic product improvements.
Planning and sourcing
Organisations are still looking for ways to gain more insight into sourcing, production and optimal distribution. ERP systems offer opportunities to track and predict market trends. However, when confronted with different systems in a supply chain, the likelihood of outdated information and the associated hang-up effects is high. Blockchain can play a big role in this by unifying databases across organisations. It is already being applied to improve food safety and more efficient tracking of international shipments.
Artificial intelligence (AI)
AI will prove its worth in many areas. From intelligently analysing consumer behaviour and applying chatbots to optimising inventory management. AI will also be used to detect production errors that were previously hidden. Visual recognition techniques are able to detect errors in organisations' production processes.
Horizontal organisations
Real-time global connectivity enables supply chain professionals to gather information faster than through the traditional supply chain. Digital communication tools, combined with AI, will ensure even faster response to customer demand. Instead of hierarchical lines, professionals will increasingly work horizontally throughout the supply chain. This not only involves changes in demand forecasting but also direct connection with transport and warehousing. Cooperation between transporters can greatly reduce empty mileage.
Another development is that supply chains can become shorter: from manufacturer directly to customer, with supply chain towers playing a coordinating role. Information can be exchanged via portals, allowing many intermediate links to be skipped or integrated. This will further reduce supply chain costs within the chain.
Opinion
- Invest in technology and solutions that offer sufficient development opportunities so that you can grow not only today but in the future when it comes to improving your efficiency.
- Make sure you clearly know what your challenges are for the coming years and look for the right technology on that basis. Do not opt for technology for technology's sake. Also take a good look at which partner will be able to help you in the coming years.
- Look beyond the big traditional players in the technology market. Many smaller organisations develop state-of-the-art technology that is often easy to integrate within your IT structure. Often, these app developers offer additional functionalities that mainstream systems do not or only at a significant additional cost.
- Investigate whether your IT infrastructure is capable of integrating an increase in digital products. This involves not only your architecture but also issues such as integration, security and privacy legislation.
- Realise that technology is not so much about replacing people as it is about replacing and automating tasks, giving your staff more time and space to support technology. The added value of your staff will increase as a result.
Technology will come to play a dominant role within all organisations, with the collaboration between humans and machines increasing all the time. From planners supported by AI and algorithms to warehouse workers who will work side by side with robots.
Author: Hans Groen - Advisor Supply Chain and Performance Managementement
