The evolution of the supply chain and logistics sector has been aided by recent developments in information and communication technology (ICT). Indeed, the analysis of large data from smart products allows for the extraction of tremendous assets for strategic, commercial or technical decision-making.
The era of supply chain management automation is here. Digitization allows for better data collection methods and the dismantling of supply chain silos. As a result, all participants have direct access to all sources of data. In this situation, a completely integrated, smart global supply chain will successfully connect suppliers, manufacturing, warehouses, logistics, and customers into a single “pool,” all of which will be managed by a centralized cloud-based command. Digitization of supply chain management will result in the integration of end-to-end smart logistics solutions.
Supply Chain Management With A Digital Twist
A smart supply chain management system provides real-time visibility into issues that affect supply or demand that originate anywhere in the network. It also aids in enhanced responsiveness to supply/demand changes while maintaining efficient cross-organizational collaboration at the tactical, operational, and functional levels. Not only that, but it also uses descriptive and predictive analytics to improve daily task planning and ‘questionable’ scenario modelling.
However, before one may reap the benefits, he or she must first establish a solid foundation for integration. This denotes the transition from old infrastructure to cloud services.
Businesses across industries are drifting away from infrastructure-intensive supply chains and toward cloud-based supply chain solutions as product and service life cycles shorten.
Migration to the cloud can significantly improve the time to market products, allow for the development of new business models, and provide access to new markets. The most appealing feature of cloud computing is that it allows for seamless interoperability, removing current digital communication barriers across different platforms and apps in your ecosystem. As a result, if the ultimate goal is to create a fully digital, connected supply chain—migration to cloud technology is the first step.
Aside from improving inclusion, cloud computing provides a slew of other advantages listed below across four dimensions.
Improved intellectual ability
Predictive analytics in demand planning, for example, will allow for the processing of large data sets using sophisticated analysis algorithms and machine learning technologies in order to forecast the possibility of a future outcome. Such systems can parse hundreds of thousands of variables from both primary and secondary data sources to generate accurate scenarios and actionable insights that can be used to generate an accurate demand plan.
Cloud-based supply chains give supply chain managers broader visibility into all processes and allow them to alter them in real-time. Supply chains, in particular, are becoming more dynamic and allowing for seamless communication between all parties. Connectivity also brings significant benefits to IT infrastructures, such as dynamic asset deployment, improved server utilization, higher SLAs, and lower TOCs.
Cloud computing, aided by in-memory computing and powerful Big Data analytics solutions, allows for speedier planning and execution capabilities. As a result, organizations can reduce the time-to-market, increase market response, and quickly transfer resources within the firm to where they’re most needed. Apart from this, one can also quickly scale up and down your cloud computing infrastructure to meet a variety of business needs.
When the supply chain is operating over the cloud, one can easily have new suppliers and partners registered to modify its operations. Furthermore, computing resource allocations can be changed in real-time to accommodate market fluctuations and client requests. The digital supply chain is flexible enough to adapt to your changing needs.
Predictive Analytics’ Importance in Supply Chain Management
Predictive analytics enables firms to turn all of their fragmented knowledge siloed in their systems into mathematical equations that recommend the best next steps. Predictive analytics solutions may turn data into actionable business intelligence by utilizing numerous tools and techniques such as machine learning, data mining, and modelling. Apart from successfully implementing internal data, such systems can also factor in external data, like currency rate variations, changes in weather conditions affecting delivery, and so on to improve forecast accuracy.
As a result, predictive analytics may be applied effectively to a variety of supply chain coordination and execution operations such as; dynamic demand analytics, finished inventory optimization, replenishment planning analytics, predictive maintenance, transportation analytics, fleet and asset management, procurement analytics, network planning and optimization, production and sourcing optimizations, as well as predictive-pricing and more.
Supply chain transparency will be aided by blockchain technology
By boosting supply chain transparency, lowering risk, and streamlining processes in overall supply chain management, blockchain technology has the potential to generate great commercial value.
Blockchain has the potential to improve supply chain transparency whilst still lowering costs and risk. Furthermore, by having an appropriate audit of supply chain data, blockchain can expedite administrative operations and decrease expenses. Processes that require manual adherence or credit checks, which may currently take a few weeks, can be sped up by adopting a distributed ledger that maintains all necessary data.
Cloud computing is the first step toward digitizing the supply chain. It is a firm base that will assist the logistics industry in enabling better collaboration and end-to-end visibility across all the processes. Once a foundation is laid down, organizations can move on to adopt more advanced solutions, such as predictive and prescriptive analytics, IoT and robotics, to further enhance the effectiveness of the supply chain. Thus, Companies are increasingly providing efficient end-to-end smart logistics solutions by integrating cloud computing, big data analytics, blockchain, and automation technologies.
The article is from Mr Sumit Sharma, Co-Founder, GoBolt
GoBOLT, A tech-enabled E2E logistics firm based out of Gurugram and co-founded by three young players. For GoBOLT, reducing transportation logistics costs has always been the number one priority. There are several ways to optimize transportation costs, improve the supply chain procedures and save money for businesses.