Emerging Trends in Supply Chain Management Aaj Enterprises September 22, 2018

Supply Chain Management Third-Party Logistics Warehouse Management

Emerging Trends in Supply Chain Management

Supply Chain Management (SCM) is about managing a network of businesses which are interconnection involved into providing products and service packages for the end customers. It is related to the movement as well as storage of unprocessed materials, work-in-process inventory in addition to the finished goods from their point of origin till the consumption. Altogether, it manages demand and supply while sourcing raw materials in parts, manufacturing, assembling and warehousing them. It takes care of the orders and distribution over all channels and delivers it to the customers.

Today, companies have been streamlining their supply chain to gain a considerable market share amidst the competition. Since, technology, monetary spending, process upgrades and activity have increased in the area, excellence is widely being accepted as a business strategy element, eventually, deriving better customer value. There is a shift being witnessed in the way companies design their supply chain.

SCM is an evolving area with always new trends coming up our way. There are certain key trends driving the innovation, agility and change in managing the supply chain for every company in 2018.

Supply Chain Workers, Labor Cost Optimization with Automation

Raising wages attracts new workers in the industry and helps retain the existing ones. Shippers reduce empty miles, thus, reducing the requirement for drivers through transportation management and network design solutions. Due to ecommerce and omnichannel, the frequency of picking has created more requirement for warehouse workers. This has led the logistics service providers to explore the deployment of mobile robots to deal with the labor shortage autonomously. Hence, Robot as a Service (RaaS) offering automation like a viable alternative. It has marked a great development in the supply chain value added services.

IOT and Data Analysis

With the increasing use of technology, more data is generated which is made available for decision making and optimization. Using advance analytical techniques and machine learning applied using data, supply chain can optimise key decision parameters such as inventory planning and vehicle routing. At AAJ business analytics and justified automation of processes have helped us in reducing travel times inside the warehouse.

Shared Warehouse Infrastructure

Contract logistics is paving way to bigger, more productive and cost efficient large scale shared warehouse facilities. Sharing infrastructure and resources not only provides a cover for business variability it also helps to divide fixed cost burden such as security and racking. While investments in automation and new digital technologies might not make sense for a business individually but in a shared warehouse environment such new possibilities are feasible.

Logistics companies in India which are the forerunners or wish to become the market leaders need to adapt to the changing industry requirements and pave the way for a stronger supply chain back bone of the economy.

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