2020 is here and one of the industries that have seen unparalleled levels of change is supply chains. While the foundational measures still apply, such as quality, productivity, and service , we’re seeing supply chain trends that are focused on digital transformation. Is it a sign of things to come?
You already know how important supply chain management is. Now, it’s time to discuss how you can make it better.
The thriving digital economy has opened up opportunities in every level of the supply chain. Companies are searching for ways to hit their business goals and stay ahead of the competition, they understand that the digital modern world is changing the game. Implementing these advanced supply chain capabilities can allow you to be more efficient and effective with your current business processes. We’re even seeing new business models that translate directly to business performance that is tangible and measurable.
What does 2020 have in store for the supply chain industry? What about beyond? Here’s what we feel are the top 10 supply chain predictions for 2020.
Prediction 1: Automated Supplier And Spend Data Analysis
At the end of 2020, more than 50 percent of all large manufacturers will have automated supplier and spend data analysis, which can result in a 15 percent procurement in productivity gained.
Prediction 2: Artificial Intelligence (AI)
Within the next 2 years, nearly half of all manufacturing supply chains will have adopted supply chain resiliency and artificial intelligence (AI), which can result in a big 15 percent boost to productivity.
Prediction 3: Warehouse Robotics
By the year 2023, 2 out of 3 warehouses will be using robots and situational data to optimize storage, which is expected to increase capacity by more than 20 percent. This will also cut order processing time by at least 50 percent.
Prediction 4: Blockchains
By the year 2023, over 25 percent of OEMs will be utilizing blockchain to source spare parts, which is believed to increase accuracy of usable parts by a whopping 60 percent. This can also lower expedite costs by more than 40 percent.
Prediction 5: Micro-Applications
Supply chain micro-applications will account for nearly 33 percent of all new technology investments in retail and manufacturing by the year 2023.
Prediction 6: Process Automation
By 2022, firms will dedicate around 33 percent of their logistics business process outsourcing services budget to process automation, focusing on order, inventory and shipment tracking.
Prediction 7: Flexible Warehousing
By 2022, the amount of companies that will be offering flexible warehousing options will increase by over 50 percent. This is going to help address seasonal demand and has the ability to lower fixed overhead costs by 20 percent.
Prediction 8: AI-Infused Automation
By 2023, 60% of G2000 manufacturers will invest in AI-infused robotic process automation to automate tasks through increased productivity and address supply chain skills deficit.
Prediction 9: Customized Supply Chains
Within the next 4 years, 3/4 of all consumer-facing companies will have developed the ability to customize at scale within their supply chains, which could result in a 2–3 percentage point increase in market share.
Prediction 10: APR-Powered Trade
By 2024, for transparency and efficiency, 40% of customs agencies will join private blockchain and API-powered trade platform ecosystems to achieve a 50% increase in cross-border compliance.
Invest In Technology
One of the most effective investments you can make in your supply chain is technology. We’re seeing a ton of amazing features that are allowing companies to customize their entire supply chain. Every business owner has to continuously think about the future of their company and the technology race is on. If a piece of technology can improve your efficiency and effectiveness, you’d better consider adding it to your supply chain.
We’re not talking about investing in technology just to do it. Rather, we’re talking about tech, tools and features that allow you to solve business problems and leverage business opportunities. If you’re not a technology company, you should be looking for a technology partner that can help you get optimized around the right technology.
If you don’t know exactly where you should focus, you need to evaluate your whole supply chain. Where can time be saved? Where can money be saved? Where can be more efficient? If you’re not collecting data and analytics to guide your decisions, get it implemented ASAP.
Both manufacturers and retailers are re-thinking and re-imagining their products, services and processes because of the new capabilities that a digitally optimized supply chain can offer. Having the technology is great but technology alone is not going to make your supply chain successful. Business owners must continue to innovate and create value from their investments in solving real business problems and enabling new offerings to customers.
*Accelerated Analytics publishes resources like this to provide insights to different analytical metrics, data points and formulas. POS Analytics. Please be aware, this doesn’t mean that our product will this metric, data point or formula. To learn exactly what our reporting covers, please feel free to schedule a demo or give us a call. Thanks for understanding.