Technology is constantly evolving, and the way businesses use it to gain a competitive advantage has changed drastically over the past decade. Despite all the technological changes, some fundamental concepts have stayed the same – inventory management and order fulfillment.
Inventory management and order fulfillment are essential parts of supply chain management. However, many organizations struggle to improve these processes because they are unaware of the latest technology solutions and concepts necessary to help improve the accuracy, forecasting, and availability of goods. The right technology and process automation can significantly reduce operating costs and ensure supply chain efficiency. Here are five disruptive supply chain technologies worth implementing in 2023:
By integrating these four components, companies can ensure that their supply chain operations data is up to date and be equipped to quickly meet consumer demand. This business agility also allows you to meet the constant changes in the supply and demand cycles of the market more easily, increasing business stability and providing a competitive advantage.
Companies use sourcing to identify manufacturers, suppliers, and distributors and to develop ongoing supplier relationships, giving them leverage when negotiating prices for supplies.
For example, when a company's supply chain is disrupted by an event such as a pandemic or natural disaster, they may be unable to rely on their usual supply chain partners to fulfill their orders. Instead, they must find new suppliers who can fill orders quickly and at the right price. This means evaluating each potential supplier's capacity and reliability before establishing a relationship with them. Gathering, storing, and assessing this information is often time-consuming, siloed, and highly manual.
Both product shortages and increases in consumer demand during the pandemic caused supply chain disruption. Due to these changes, new suppliers entered the market and took advantage of digital technology to overcome supply chain challenges, enhance capabilities, and gain a competitive edge. These new disruptions emphasized the importance of using multiple suppliers and implementing solutions that provide full supplier transparency. Leveraging the following technology will help streamline the sourcing process:
Manufacturing is a supply chain segment that transforms raw materials and supplies into finished products. Adopting new technologies, such as automation, will increase efficiency and provide a greater degree of control over production processes, improving the quality of the end product. Leveraging machine learning and artificial intelligence throughout the manufacturing cycle is a great way to reduce cost of goods, reduce waste, improve quality control, and increase production speed. The following are technologies that businesses can invest in to improve the fulfillment process:
Delivery is the final step in getting goods and services to customers. Like all steps in the supply chain, delivery depends on many factors, including consumer demand, inventory levels, and meeting estimated shipment dates. Technology advancements and changes in consumer behavior and expectations led to the increase of on-demand services using digital channels. Consumers now expect expedited delivery of their goods and full transparency of the delivery process. New technologies can help improve delivery communications and logistics while enhancing customer experiences. Some of these technologies include:
Although the supply chain process seems to end after a product is delivered, customer satisfaction is not guaranteed. A product may need to be returned for the customer to receive a refund; this activity is known as the reverse supply chain process. Returns are a prime example of how technology can be used to increase efficiency. Streamlined return processes increase customer satisfaction and improve the likelihood that the customer will purchase from you again. Companies can offer their customers a seamless customer return experience by utilizing the following technologies:
The supply chain process has many components, and each element plays a critical role in achieving a successful and profitable operation. As the market continues to evolve, it’s more important than ever to implement cutting-edge technologies to stay competitive. When deploying new technologies, companies should consider the following:
Nisum can help you reduce supply chain costs, increase operational efficiency, and improve customer satisfaction by building custom digital solutions for your business. Nisum has the expertise you need to overcome supply chain management challenges and help you gain a competitive edge. We combine our domain expertise in logistics with the latest technology and analytics to provide clients with a comprehensive approach to: