Supply chain technologies such as 5G, cloud technology, AI/ML, and more play a crucial role in developing resilient global supply networks. The technologies help to enable an overall view of the supply chain, such that the businesses can make essential decisions related to inventory management, supply and demand cycle, and more. These innovative technologies are reinventing the supply chain management system.
Target Corporation is an American department store chain headquartered in Minneapolis, Minnesota. As the seventh largest retailer in the United States, it is also a component of the S&P 500 Index. It has more than 50 stores in the United States.
In January 2015, Target shut down its Canada operations due to poor supply chain issues. A simple pink Barbie-branded SUV meant to seat two toddlers was the problem. Unfortunately, the toy was among the many products that caused traffic jams at new distribution centers.
Goods were coming in faster than they were leaving the warehouse because the barcodes on many items varied from what was in the inventory systems. Moreover, they took on too much too quickly. They went in with a prominent real estate deal, engaging in rapid nationwide launches that later led to significant supply chain challenges.
Due to the lack of supply chain management solutions, the shelves at the Target stores were left empty and the shoppers frustrated.
Source: MaxQ Technologies
Supply Chain Management: Top Trends
The worldwide supply chain management software market touched US$ 13.08 Billion in 2021. As per the IMARC Group’s expectations, it will reach US$ 29.81 Billion by 2027 at a CAGR of 13.60% from 2022-2027.
Close to 57% of companies suggest that supply chain management systems provide them with a competitive edge that enables them to expand their business operations. It also contributes to better customer service. As suggested by an Accenture report, 70% of professionals predict that supply chain management software will be a key driver in ensuring customer satisfaction.
As a result of the pandemic, approximately 28% of retailers reported that they underwent shortages and out-of-stock situations. The same number of retailers tried to look for alternate sourcing options.
The year 2020 saw the retail sector experienced a global inventory distortion. The estimated value of the out-of-stock items during this duration was approximately $1.14 trillion. Just $626 billion was the value of overstock. In addition, the crises induced by the pandemic increased the demand for partnering with software product engineering services.
Technologies Used for Developing Supply Chain Management Softwares
Supply chain management solutions are run on innovation, logistics, and analysis. The introduction of several new technologies has transformed the process into a more efficient, transparent, and collaborative activity.
Technology has a significant impact on the supply chain. However, digitization is the most disregarded among all the other industries. As per McKinsey & Company, the supply chain sector has the lowest digitization rate of 43% compared to other dimensions, including marketing and distribution channels, business processes, and more.
Irrespective of that, supply chain technologies have a significant role in enhancing the process’s visibility, efficiency, and accuracy. So let us look at some top emerging technologies in supply chain management.
- Cloud Technology
- If you want to use a pool of IT resources without maintaining a giant data center infrastructure, a software product engineering company can help you with cloud-based commerce networks. Cloud allows companies to deploy resources on a need basis rather than making a one-time permanent investment.
- Cloud technology enables supply chain management software applications to combine all supply chain and logistics information into a central solution. The centralization of information removes the data silos and strengthens information sharing. As a result, all the supply chain stakeholders such as vendors, suppliers, partners, etc. can access the relevant information.
- 5G and Starlink
- The 5G technologies meeting with supply chain operations is expected to be a massive moment for the industry. In addition, the improved speed and reduced latency are believed to reduce the processing time for manufacturing and delivery processes.
- In addition, the 5G networks include the cloud networks that help to drive wireless connections. Software-based capabilities can advance automation and data processing. The end-to-end product engineering solutions help to advance automation and data processing.
- The Startlink is expected to enable faster internet in rural or backward areas. In addition, this expansion will help the manufacturers to reach out in these currently unserviceable areas.
- Internet of Things
- The Internet of Things supports operational efficiencies in asset tracking, inventory management, enhancing productivity, forecasting, and more.
- The companies can track the inventory throughout its lifecycle with RFID and GPS sensors. This helps the manufacturers gather valuable minute data such as the time an item spent in storage, how long it took to sell the item, the time spent in transport, and more. In addition, the real-time visibility the IoT sensors provide helps to identify sales trends and make more accurate projections to plan for the future.
- In supply chain disruptions, companies can identify the bottlenecks and take appropriate actions. The ability to track the pinpoint location of each item in real time while shipping enables the companies to deliver excellent customer service by providing accurate delivery information.
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Conclusion
Supply chain systems are complex, and an effect on one component may impact the entire chain. Therefore, it is essential to have a bird’s eye view of the whole supply chain at a time. Innovative technologies in the supply chain are helping manufacturers to track their processes from procurement to production and finally until order fulfillment.
The future is in the hands of enterprises that adopt customer-centric behavior. The modern supply chain technology trends help to ensure that consumers get higher quality products at a quicker pace. In addition, it helps the manufacturers to identify what’s working and make improvements wherever necessary.
For the best supply chain management solutions, contact team Tntra today.
