Traditional supply chain execution systems are becoming obsolete. A number of technologies are converging and a new supply chain of the future is creeping in.
What’s causing the shift?
Our world continues to grow and expand, with some reports saying our world will double in the
coming years. This growth will place an increasing strain on resources as businesses must produce more to meet the needs of consumers, while remaining competitive in the equally expanding global marketplace.
When it comes to supply and demand, there are other issues. Suppliers to these businesses aren’t always reliable. The products they sell are either poor quality, or are not delivered in time.
Not to mention escalating fuel prices and political unrest in many countries is causing a flux in the shipping, forcing some companies to opt for a longer delivery in time over higher prices. In turn, this causes an upset with customers because in today’s marketplace we expect speedy delivery and a low cost.
The need to manage resources and shifting prices, coupled with the desire to understand and mitigate risks, are causing many companies to look at a blend of technologies to help create the supply chain of the future.
It will be digital, with technology embedded into every facet. Things like cloud computing, advanced analytics, and machine to machine technology are creating a supply chain that can talk, listen, sense and respond.
It will be connected
Cloud computing frequently praised for its collaborative capabilities for colleagues within the same company can also provide equal potential for those in a business network. This interconnectivity of the network will provide a view of the supply chain previously unknown. It brings an opportunity for partners in the supply chain to connect, communicate and respond to issues or opportunities, based on information from a single source of truth.
It will mitigate risk with advanced analytics and M2M
Analytics will enable businesses to mitigate risks with suppliers. It does this by actively listening to the data streams from a variety of sources; social media, local news, and weather patterns are some.
When it comes to supply and demand, analytics, paired with the Internet of Things powered by Machine to Machine technology, will also be able to sense when machines are at production capacity; or all of the transportation methods are full, and make informed decisions without human involvement.
These smart supply chains will enable businesses to predict buying behaviors, encouraging or discouraging certain shipments. In turn, this will save not only the company money, but also for waste reduction.
The supply chain of the future
In turn, these connected by the cloud supply chains optimized by analytics and powered by IoT will allow businesses to become flexible, dynamic, and smart. What else do you think will define the supply chain of the future?
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