How Technology can solve Supply Chain Issues?

Supply chain is the most volatile and vulnerable sector all around the world. The worldwide logistical turmoil has aggravated due to some growing issues i.e. labor and raw material shortages, changes in weather conditions and continuous fluctuations in the demand of goods and services. Above that, the forecast variations are a major rift in the supply chain resilience. Furthermore, companies are using complex IT systems and inefficient data. There is a dire need for the supply chain to come up with robust and agile ways to deal with such challenges and that’s where technology creeps in to pull organizations out of crisis. Below are some steps that they can take to cope with uncertainty within the supply chain.

1. Effective Data Utilization

The vast amount of data that companies have will be of no use if it is not utilized efficiently to make decisions. To identify the cause of disruption in the supply chain, data backed insights are of paramount importance. Globally, millions of unfilled containers are shipping per year. Businesses do not consider their operations from all angles (i.e. inventory and production management or shipping processes). Their software is not updated to inform whether capacity is available for orders. Companies can make proactive decisions and adjustments by monitoring all processes and shipping capacity. This will reduce the cost and carbon footprint (reduction in transportation cost and less fuel consumption) as empty containers will be utilized and less number of containers will be shipped.

2. Use of Artificial Intelligence 

The use of Artificial Intelligence for supply chain management has become inevitable, since some areas require quick and effective decision-making abilities. AI can be adapted to specific supply chain situations to give accurate predictions. With the power of this technology, process mining will give more valuable data insights. Sensors backed by IoT can be used for tracking and digital twin technology can be used for prior testing.

3. Stick to Sustainable Supply Chain

Companies must follow the course of sustainable supply chain. From an economic perspective, inflationary pressure will be reduced if supply chain practices are eco-friendly. Such approaches will cause a reduction in the cost of waste and emissions. More revenues will be generated for the companies through customer retention and loyalty. By taking advantage of machine learning technology, the time of delivery will be exact, which will satisfy your customers in the end.

Now is the time that businesses should ameliorate their supply chain through optimization of technology. They should make it more data driven, sustainable and transparent. With the use of process mining, inefficiencies, delays and cancellations caused by human negligence can be reduced and it will be easier for them to tackle global challenges.