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Future trends and technologies
The supply chain world is evolving every day,
where tomorrow is already here. By the end of this video, you'll be able to identify future trends and technologies that are expected to shape the field of supply chain management. First, let's see what's ahead in digitization and data analytics. Data is everywhere in the supply chain, and advancements in technologies are allowing companies to learn even more from themselves by studying their own network information. Many organizations are already using data analytics, machine learning, and artificial intelligence to gain insights, optimize processes, and make data-driven decisions across the supply chain. These tools, coupled with business understanding, make the perfect combination for future development and sustainable growth. The Internet of Things, or IoT, refers to the network of physical objects that are embedded with sensors, software, and other technologies, so they can connect and exchange data with other systems. In the future of the supply chain world, IoT devices embedded in products, vehicles, and infrastructure will enable real-time tracking, monitoring, and optimization of supply chain operations. IoT sensors will provide valuable data on location, condition, and performance, which will allow companies to achieve enhanced visibility, efficiency, and predictive maintenance. The combination of technical expertise, business acumen, and people skills empower supply chain analysts to thrive in a world where IoT devices embedded in products, vehicles, and infrastructure enhance real-time tracking, monitoring, and optimization of supply chain operations. Next up is blockchain technology, which is an advanced database mechanism that allows information sharing within a network. It can provide secure records of transactions, certifications, and product origins, which can help organizations reduce fraud, improve supply chain visibility, and enable more efficient and reliable transactions. However, there are some challenges that still need to be resolved because supply chains involve multiple stakeholders with different systems and platforms ensuring seamless interoperability and data exchange between these systems can be complex. There are also regulatory and legal challenges that limit the ability to implement the solution, and data privacy and security are significant concerns when implementing blockchain in the supply chain. But it will be exciting to see how this emerging technology evolves in the near future. Here's an example of how blockchain technology is being used. Cool coffee company is using blockchain with multiple stakeholders including coffee farmers, exporters, importers, roasters, and retailers. Each participant is equipped with a unique digital identifier that represents their role and verifies their actions at various stages of the coffee production process. As coffee beans progress through the supply chain, each transaction is recorded as a block on the blockchain. This allows the company and its customers to trace the entire journey of the coffee beans. Additionally, the use of this technology allows for quick identification of any quality issues that may arise, so the company can quickly identify the affected batch. By leveraging blockchain technology, the coffee company can create a secure, decentralized, and transparent supply chain, ensuring the quality, authenticity, and sustainability of their products. Robotics and automation are already being used in supply chain operations and will continue to play an important role. For example, warehouse robots, autonomous vehicles, drones, smart lockers, and automated material handling systems enhance production and delivery speed, inventory, accuracy, and efficiency in tasks such as picking, packing, sorting, and transporting products. These solutions are enhancing the work operators and analysts engage with in their operations. Additive manufacturing technologies can be used in supply chain production by transmitting digital designs to 3D printers, which guide the fabrication of products and enable cost-effective production. These technologies also have the potential to enable localized production, because companies can make their own specialized components. These mechanisms improve accuracy and allow for more customization potentially reducing inventory costs and lead times, improving response times, and optimizing inventory management, spare parts availability, and supply chain responsiveness. Here's an example of how additive manufacturing is being used today. Mega Manufacturer is a company that operates a complex supply chain for its machinery and equipment, and it uses additive manufacturing to produce spare parts on demand. The company maintains a digital inventory of 3D models for all critical spare parts. When a piece of equipment needs a replacement part, the company selects the appropriate 3D model and uses 3D printers to create the part layer by layer. Once the part is printed, it undergoes quality control testing and then the maintenance team installs the part. Environmental sustainability will become increasingly important in supply chain. Companies are adopting green practices such as carbon footprint reduction, waste minimization, and renewable energy usage to meet regulatory requirements, reduce costs, and enhance their brand reputation. Although some argue the cost of implementing such solutions is too expensive, it is a proven good business practice and definitely worth it from a financial standpoint. In the long run, it is sustainable for everyone. The COVID-19 pandemic highlighted the need for resilient supply chains. The importance of developing flexible systems capable of changing and adapting to such drastic circumstances could be the difference between thriving and disappearing. Future trends will focus on risk management, scenario planning, and building resilient supply networks that can adapt to disruptions, natural disasters, geopolitical changes, and other unimaginable events. These proactive measures ensure that businesses can not only survive but also excel in the face of uncertainty. You've already heard that collaboration and agility are vital in supply chain success, and these trends will continue to be. Companies will form even closer partnerships with suppliers, customers, and logistics providers by using advanced technology platforms for real time collaboration, demand planning, and inventory optimization so they can meet the continuously changing customer demand. Horizons have started to become shorter, and organizations are looking to support short term planning, more so than before. Augmented reality and virtual reality technologies are also on the horizon for supply chain operations. These innovative technologies can be leveraged to enhance workforce capabilities and improve various aspects of the supply chain. Just imagine them being used for virtual warehouse tours, training simulations, maintenance, remote troubleshooting, and collaboration, and improving worker productivity. Our last trend is democratization of insights, which refers to the practice of making valuable supply chain insights and analytics accessible to a wider range of stakeholders throughout the organization. By enabling easy access to supply chain data and insights, organizations can empower employees at all levels to make informed decisions and take proactive actions based on real-time information. This democratization of insights fosters a culture of data-driven decision-making and promotes agility throughout the supply chain. Imagine sharing user-friendly dashboards, reports, and visualizations that enable stakeholders across different departments such as sales operations and finance to access and understand the insights derived from supply chain data. They can generate their own reports and ask specific questions, and the system should be able to provide instant answers. By making these insights available, decision-makers at various levels can make more informed and timely decisions driving improvements in supply chain performance. The future is exciting for the supply chain world. Remember, you are also the future of supply chain, so buckle up, it's going to be a very interesting ride.