Supply chains today are more interconnected and global than ever before. Local disruptions around the world, such as natural disasters or political circumstances, can contribute to massive setbacks or even freeze the processes of large corporations. An expansion of some regulations can be helpful in ensuring a secure model for supply chain businesses to follow, but also increases the risk of fines. In short, supply chains have seen some significant changes in the past few years, and the industry will be sure to continue to change in the future.
Here are the trends to look out for in the next few years:
- Algorithmic supply chain planning: Using predictive algorithms, businesses can establish patterns and determine potential issues from the vast amounts of data that are inherent in supply chain management.
- Robotics: Robots will not fully replace humans – instead, they will take over the repetitive, manual work, allowing employees to focus on the more complex, rewarding aspects of their jobs.
- Digital twins: In order to predict potential supply chain disruptions and mitigate their effects, organisations are increasingly using digital twins. By creating a system that can mimic the effect of an incident, such as a natural disaster, organisations can take preventative measures.
- Blockchain: Stakeholders would like to ensure that collected supply chain data is credible. Blockchain provides an ideal solution, providing transparency and security.
- Planning tools: Organisations will be looking for solutions that provide dynamic, accurate planning strategies based on ongoing data for their supply chain management, like CyDesk.
In the future, it is clear that digital transformation in business processes, such as algorithms and robotics, will only truly be effective and beneficial if organisations simultaneously adopt systems such as digital twins and blockchain to manage the inherent risks of digital supply chains.
Supply chains are often a critical part of a business; therefore, it is essential that organisations continue to find innovative ways to advance the efficiency of their processes. A strong management plan, which draws upon continuous identification and analysis of rick factors within the supply chain, can go a long way to reducing losses and negative impacts. Crucially, mitigation strategies within these plans should be flexible and created with business objectives in mind, ensuring that actions taken to advance and secure a supply chain only impacts an organisation positively.