The effective and efficient management of supply chains has a significant impact on the success of overall business operations. Digitization has offered a substantial transformation in the supply chain sector revolutionizing careers, business strategy, and growth. Businesses are strengthening their supply chain to brace themselves for the evolving business landscape, changing climate patterns, and the dynamic socio-economic global situations. They are:
a. building resilient logistics solutions,
b. focused on increasing real-time connectivity, and
c. embracing carbon natural solutions.
In 2024, as digitization continues to be the buzzword, several technological advancements are shaping the supply chain sector. These are offering businesses solutions that are resilient, innovative, and sustainable. Initiating transformative efforts harnessing the power of technology offers brands to explore untapped opportunities and stay ahead of the curve.
The need of the hour in supply chain management
E-commerce and logistics businesses need responsive and resilient supply chain solutions. Considering the evolving political landscape, global conflicts, environmental challenges, and dynamic business changes, businesses recognize the need for solutions that are adaptive and connected in real time. They seek:
a. management solutions that are flexible with swift adjustments (in terms of software and internal communication)
b. system solutions that offer demand prediction analysis, targeted and segmented.
c. overall solutions that offer the most efficient use of resources in case of demand fluctuations.
Many businesses work with Software as a service (SaaS) to optimize their manufacturing, distribution, logistics, transportation management, and alike. However, the need is to be the pioneer in disruptive and innovative technology adoption. Which brings businesses closer to optimization in their operations.
The fundamental need in the digitization of the supply chain is risk resilience. The pandemic and the global changes have pushed businesses to recognize the importance of resilient supply chains. One’s that are designed to survive, thrive, grow, and succeed. Pushing business to explore digitization that helps to:
a. Build models and strategies to be closer to actual demand. (off-shore, near-shore deliveries, etc.)
b. Identifying several alternate suppliers across geographical locations to eliminate a single source of supply dependency.
c. Design and rethink inventory optimization.
d. Partner and collaborate with transportation, logistics, suppliers service providers, etc.
What are the Trends shaping supply chain in 2024?
The past few years have been revolutionary for changes in supply chain management. The continuous influx of rapid technological changes is evolving the sector by the day. Let’s look at the latest trends in 2024 and beyond, shaping the supply chain sector:
1. AI expansion: Cognitive computing and Generative AI
To fulfil the need to build risk-resilient systems, AI has been critical in supply chain management. The role of AI has expanded to offer businesses cognitive computing and generative AI. Cognitive computing is designing stimulations in computer models that can think in situations where the right answer is not possible to be programmed into the system. This helps to build automation in decision-making and build dynamic processes for forecasting and inventory management.
Generative AI is a tool to pack the system with as much information as possible to help the system make informed decisions. Many businesses are building their own generative AI models like ChatGPT. It helps to make informed decisions in planning, forecasting, and risk management.
2. Data analytics takes over
Analytics has been a game-changer in supply chain operations. With its visualization tools, it offers powerful business intelligence and supply chain solutions. Businesses are using machine learning to analyse their historical data and learn patterns. Such as customer behaviours, seasonal fluctuations, weather impact on order processing, etc.
As more brands are developing data models by aggregating and analysing them, the opportunities to innovate with analytics are limitless. Capitalizing on these unexplored opportunities will enable brands to transform their supply chain models. By building predictive supply chain operations and being more proactive than reactive in management.
3. Investment in cloud management
A growing yet rather less explored trend is integrating cloud management. Cloud-based software like the software-as-a-service (SaaS) model is one of the most popularly adopted models. A key factor for its lower adoption so far has been the entire management system moving to cloud operations.
In 2024, businesses are moving faster to digitize their operation to stay ahead of the competition. Investing in cloud management software is treated as a capital investment rather than operating expenses. An investment that ensures easier integration of data and processing more tools and applications like AI tools.
4. Sustainability demand intensifying
The supply chain management involves logistics, transportation, and packaging – all aspects that implicate heavy carbon emissions. With changing consumer dynamics, policy framework, and increasing demand to build carbon-neutral processes, demand to build resilient sustainable solutions will continue to intensify in 2024. The aim is to minimize environmental impact with bio-degradable packaging, optimized routes in transportation, eco-friendly fuel usage, and application of green technologies. ESG has become a strong part of supply chain strategy. Management must build green business models and build a relationship with suppliers who offer them eco-friendly solutions.
5. Rise in transparency in the supply chain
While transparency is a large part of sustainability, transparency is the first crucial step to acknowledging a business’s overall practices. The emphasis is – if management does not have a laid down flow-by-flow and step-by-step understanding of what goes on in their supply chain, how can they identify challenges and build resilient solutions?
To meet the intensifying sustainable needs, a business must first be able to pinpoint where all in their operation are emissions, waste, repetition, and inequality in labour rights. Transparency is not limited to building eco-friendly practices and application of green technology, it also encompasses gender equality, fair wages, inclusivity, and diversity.
To help realize these needs, many brands are outsourcing their supply chain management solutions and logistics to help save costs, time, and resources. Employing industry consultants to optimize their inclusivity and gender rights in the organization. Increasing the number of businesses offering supply chain management and logistics management solutions. These firms primarily work on optimizing the supply chain processes and bringing in transparency.
This is building new career capacities in the supply chain sector. Where firms search for skilled managers in supply chain, logistics, and operations management. As the sector adopts more digitized solutions, it seeks managers who understand the processes and can make informed data-driven decisions.
Become a part of the thriving and growing e-commerce and supply sector. MBA ESG offers a Global MBA in E-commerce, supply chain, and logistics management. The programme is designed to build resilient managers with its curated industry intervention and global networking. Its foundation is laid in applied learning, industry live projects, peer-to-peer learning engagement, and global networking.
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