Five Best Logistics & Supply Chain Management Technology Trends
Increasing technological innovations are creating big waves across industries, and logistics and supply chain management are among the most impacted sectors. Known for its heavy use of manual processes and immense amounts of data stored in different ways and in different locations, the logistics industry can primarily benefit from implementing new technologies and applying innovative supply chain and logistics trends.
Recently, we have witnessed a massive development of new technologies like artificial intelligence, advanced analytics, and automation in the supply chain space. These technologies are advancing so rapidly that even small startups with minimum investment in supply chain optimization software can largely benefit from it. Even customers are leaning toward businesses that can utilize these technologies to deliver their products at a much faster pace.
Businesses within the supply chain and logistics sphere must continue to be ready for all coming changes with technology. From SaaS to blockchain to real-time supply chain visibility, TransImpact has identified the top five essential supply chain technology trends your company should look for. However, before we delve into these technological solutions, let’s explore what are the industry-related challenges and how technology can be a solution to them.
What are the Challenges in the Supply Chain Industry?
Inventory levels are not properly maintained
Insufficient data
High transportation cost
Inadequate inventory space management
Meeting customer needs
Adapting to recent technologies
How can Supply Chain Digitization Help?
Improved visibility
Cost reduction
Complete access to end-to-end operations
Optimizing transportation and maximizing resources
Streamlining the distribution process
Let’s look at the most advancing technologies in the supply chain and logistics ecosystem:
Software as a Service (SaaS)
Software as a service (SaaS) is a developing trend in logistics and supply chain management. Due to the rising demand for cloud-based software solutions, businesses are turning to SaaS technology providers for their supply chain operations. Flexibility is one of the main advantages of this technology. Companies can use these solutions from any location with internet connectivity, making it simpler to access information across various locations. This can help firms optimize their supply chain operations and reduce the requirement for expensive on-premises software deployments.
2. Artificial and Augmented Intelligence
Augmented intelligence combines human intelligence with AI automated processes. The logistics industry has started integrating artificial intelligence solutions, including intelligent transportation, route planning, and demand planning, in their operations. From last-mile delivery robots to warehouse automated picking service and predictive optimization software, AI is already making immense progress in logistics. Customers, suppliers, carriers, and shippers all can benefit from this technological trend in the coming years.
3. Blockchain
Since its inception, blockchain has become one of the buzzwords in any industry and one of the most hyped logistics optimization technology trends. The complex concept of blockchain may have been difficult to understand for the public, but it has its own benefits when it comes to supply chain management. Because of its Access to All feature, shippers can use this technology to share vital information across all relevant stages of supply chain operations.
4. Internet of Things (IoT)
IoT technology is another crucial area when it comes to supply chain digitization for tracking shipments. IoT devices that are connected to the cargo enable warehouses to track inventory and transportation vehicles over cloud systems. It can also benefit in real-time monitoring, implementing preventing maintenance, enhancing fuel efficiency, and making container operations proactive. Applying IoT is gaining fast popularity in supply chain domains.
5. Digital twins
One of the recent technology trends in logistic optimization is digital twins. You may be aware that products are not alike as their computer models. Specific measures like wear and tear and customized requirements are not considered during a product's modeling process. The digital twins' technology allows physical and digital worlds to merge into a single format, enabling customers to access the digital model of a physical object first to understand their physical structures better.
So, is this technology relevant to the supply chain? Digital twins find applications in shipments to collect information on product and packaging data and look for potential errors to improve future operations. Businesses use this technology to develop accurate 3D models of their warehouse premises to easily visualize layout changes or introduce new equipment in digital format without doing it physically. Logistics businesses use this tool to accumulate different scenarios for increasing efficiency and securing real-time information to streamline delivery timelines.
Industry-Leading Partner for Your Supply Chain Optimization
Transimpact’s Supply Chain Management Solution enables businesses to access complete visibility across the entire operations. Our demand planning and forecasting software solution empowers our clients to predict accurate demand for the future. Connecting our inventory planning software to your business, you can utilize our practical, value-driven solutions for all upcoming trends or market shifts. To explore more about our range of solutions, contact our experts or schedule a demo.