Logistics, transportation, and supply chains are undergoing massive transformations in the post-pandemic era. While these segments were already witnessing an upward spiral over the past decade, the pandemic has definitely worked as a catalyst in their growth. With the integration of modernistic technology like artificial intelligence, machine learning, Internet of Things, blockchain, and cloud computing, modern supply chain management has seamlessly transformed into a full-stack automation process.
The present supply chain system mixed with the fourth industrial revolution leverages these futuristic technologies to enhance enterprise-wide connectivity, conduct real-time analytics, automate tracking processes and optimize resources with meticulous precision. Needless to say, companies failing to strengthen their supply chain ecosystem with these advancements will be at a disadvantage in the future.
Against this backdrop, here are a few ways technology is revamping the traditional supply chain system:
Enhancing real-time Supply Chain Visibility
In this supreme era of globalization and technological abundance, customers’ demand for real-time information has picked up the pace. Logistics and supply chain companies cannot dismiss the idea of integrating forward-looking supply chain visibility (SCV) solutions into their proceedings. The introduction of new-age technologies like Radio Frequency Identification (RFID) that complement barcode technology makes it easier to follow products in real-time.
Simultaneously, it also provides accurate and detailed information at any given point during the movement of goods in the supply chain. Additionally, several modernistic SCV startups are using fast-track response to change by enabling companies to use real-time data like traffic congestion, weather conditions, state of the roads, and ports. Through this data, the companies can then take necessary actions such as optimizing routes and redirecting supply.
IoT devices on goods and products allow logistics companies to effectively track vehicles, inventory, and equipment. Furthermore, IoT sensors also play an essential role in monitoring shipments, thereby enhancing supply chain efficiency and visibility. In this context, many Small Medium Enterprises (SMEs) and even industry giants in the logistics sector have started collaborating with dedicated IoT startups that offer hassle-free and seamless supply chain visibility.
Leveraging Artificial and Augmented Intelligence
From smart transportation to intelligent route planning and demand management, AI has emerged as an instrumental part of the supply chain and logistics industry. Industry experts have forecasted that these advancements will reach unprecedented heights over the next few years and benefit supply chain stakeholders such as shippers, suppliers, carriers, and end-consumers.
The technology is already bringing pioneering changes like predictive optimization, automated warehouse picking systems, and long-term sustainable solutions. Combined with AI, Augmented Intelligence is also expected to lead to human intelligence like the comprehensive experience of supply chain planners, responsibility, flexibility, and devotion to customers in the mix to fortify the entire process further. This integration will automatically reduce labour intensity, save time and cost and get the job done faster.
Going beyond a handful of industries with Supply Chain 4.0
Assisting more than a handful of niche industries, the fourth industrial revolution is rapidly growing in the supply chain and logistics sector. Not just the Fast-Moving Consumer Goods (FMCG) industry but almost every minor or major sectors such as pharmaceuticals, groceries, and automotive apparel are using supply chains today and paving the path towards Supply Chain 4.0.
As per a report, with technological advancements, the supply chain model has transformed from a linear to a more integrated one where information flows in an omnidirectional manner. This improves the efficiency of the e-commerce sector and assists brick and mortar stores more seamlessly than ever. The idea is to depend on a reliable, accurate, and trustworthy process that caters to the needs of modern-day companies, right from manufacturing to transportation and distribution.
Final Word
According to Logistics Performance Index-World Bank Group aggregated report between 2012 and 2018, India was ranked at 42 globally. While India’s supply chain logistics is continuously improving in an unrelenting manner, it is still surrounded by ample hurdles that depreciate its global logistics performance. Therefore, the existing supply chain industry must harness the power of cutting-edge technology to have long-term sustainability. Moreover, given that every company has specific supply chain goals, it is crucial to have forward-thinking leadership and a skilled workforce to eliminate the complexities of the supply chain.
Disclaimer
Views expressed above are the author’s own.
