The global supply chain industry is developing at a rapid pace like never before by embracing new technological trends, especially with the logistics part. It is a great challenge for business executives and managers in the supply chain industry to cope with the evolving technologies and implement them in the right way in their business. But still, they need to know about the evolving trends and stay ahead of them by deploying the right ones for their business. Being a successful logistic service provider in India, we at V-Trans provide the best Logistic solution for our clients and that makes us unique in the supply chain industry. Let us have a look at some path-breaking business and technological trends that would highly disrupt the supply chain industry in 2023.
Technological Trends for 2023
Artificial Intelligence (AI) and Automation
AI and automation are most often been confused by several industries when they try to adopt them, these industries think that both AI and automation are the same, but the fact is these two technologies are highly diversified in terms of their applicability. In general, automation is brought in to eliminate the involvement of human in simpler task and place machines as the alternatives, whereas, the tasks carried out by artificial intelligence involves a bit of thinking and hence it does human mimicking with the help of machine learning. AI-based intelligent procurement, inventory management, and even transportation to an extent are some of the striking examples of AI and automation deployment in the supply chain. The challenge for the supply chain players finds the best business practice to implement these technologies.
Internet of Things (IoT)
According to research by 2030, there will be more than 25 billion IoT devices in use.
The Internet of things (IoT) is the most happening technology in the business world and especially in the supply chain industry. Iot is all about digitally connecting several physical devices thanks to wireless fidelity, with the help of IoT and applying other technologies with it a supply chain player can make sound decisions. For example, by gathering data on several stocks in a warehouse supply chain player can make accurate logistic moves.
Digitization and Cloud solutions
Any information that prevails in digital form is known as digitization, not just for the supply chain industry but the entire world of business needs to adapt to digitization. In the case of the supply chain industry converting its operations to the digital format is certainly a proactive approach. The business executive and managers of a supply chain company must plan and execute a dedicated digitization strategy that works for them.
Similar to digitalization, cloud-based solutions are also one of the unavoidable technological developments for the supply chain industry. Software as a service (SaaS) is cloud-based which not just helps the supply chain players to access and utilize related data from anywhere and at any time, but also ensures data security. Any supply chain organization needs to adopt cloud-based solutions to stay competitive in the future.
Business Trends for 2023
Change in Companies Approach
The Supply chain companies were carrying out a subtle approach during the pandemic time, and it’s time now for these companies to change their gears. In the last two years of covid wave companies didn’t take any chances in their supply chain operability and now they can deploy any changes like the above-mentioned technological advancements in their operations. The only point to be concerned about is the companies need to create long-term strategies instead of looking for quick success.
Return of lean inventory and manufacturers opting for nearshoring
The business approach carried out by supply chain companies is evaluated based on pre and post-pandemic stages in this section and the most important approach that is reconsidered are the usage of lean inventory management. Earlier supply chain companies used to practice this method but this approach got backfired during the pandemic season when there is a contradicting situation happened between the supply and demand of stocks. But now things have become normal and hence the lean inventory management system is back. Similarly, the reshoring approach will also be taken into consideration from 2023 where it cut down the transportation cost and also makes manufacturing faster.
Sustainability and Consumer Demand
The demand from the consumer side and the change in regulation made by the governments will push the supply chain players to go for greener-based strategies and transmit more recycling products. The companies will also look out for using more raw materials that can be reusable.
The trends that disrupt the supply chain industry aim to push the industry further in a productive path, adapting to the changes would certainly elevate the performance of a supply chain player and also creates a Win-Win situation for their stakeholders. Being a promising logistic service provider in the arena of the Indian supply chain industry, V-Trans is quite aware of these trends and have started practicing them.