A Paradigm Shift in Supply Chain Management

By Gambits Financial - Oct 19, 2022

Financial Gambits Special Report

Table of Contents

Businesses can access a vast scope of industry 4.0 technologies

Supply Chain Management (SCM) is no longer business as usual as novel technology paradigms keep shaking up SCM operations. Disruptive technology is widely regarded as a game-changer, as it transforms SCM; they render established systems obsolete by lowering costs, simplifying procedures, and increasing convenience. Disruptive technology provides various benefits, upgrades, and functions over rivals since it is new. For instance, technologies such as blockchain technology(BCT) and Big Data(BD) can be adopted in SCM to facilitate sophisticated preparation, which comprise analytical order processing or incorporated sales and transaction planning, and contract operational logistics to 3rd party logistics providers. According to Veynberg et al. (2020), the above technology is beneficial to all the participants in the supply network. From the producers and distributors to consumers, the SC system ascertains that all processes are well-incorporated, with decisions on prices, storage, and services to the clients derived from an end-to-end viewpoint instead of each separate department.

Companies are experiencing transformation on how they build and manage their SCs operations in strategies to succeed effectively in the world economy. Such a transformation results from the growth and proliferation of BD and its integration with other tech innovation like smart systems, Internet of Things (IoT), and artificial intelligence algorithms. In addition, numerous firms use a range of Information and Communication Technologies (ICTs) for SCM to gather, process, and store data. Accordingly, BDA enables businesses to get insightful information from SCM data by using various layers of analytics.

In the management of the modern SC, businesses can access a vast scope of industry 4.0 technologies. According to Tamym et al. (2020) the era of the above technologies offers enterprises an access to a wide range of modern technologies including online social networks, IoT, sensors, mobile devices, among others; enterprises also use a range of ICTs for Supply Chain Management such as Radio Frequency Identification (RFID), and Enterprise Resource Planning (ERP), to collect, assemble, manage, and keep their data and information. Therefore, SCs are becoming more complicated. Awwad et al. (2018) asserts that the flow of information in the modern world,is no longer on a straight path. Nguyen et al. (2018) describes it as a synchronous and real-time interchange through a digital transformation amongst all the SC participants. Sample size, diversity, interrelation, dynamic nature, and ambiguity are some of the fundamental aspects of this complexity of SCM data.

Big Data technologies transforming supply chain

Based on the large data acquired from various systems as explained above, businesses can adopt Big Data technologies to transform their supply chain management by using marketing intelligence and e-commerce to assist them to construct decision-support systems based on such data. Analyzing this data can assist firms’ SCM in mastering knowledge and gaining insights regarding their consumers and marketplaces, thus allowing them to better react to their environment. This enables supply chain managers to anticipate, adapt, and respond rapidly to changing business situations. For instance, McDonald’s, the most recognized fast-food chain globally, is embracing contemporary technology in a variety of ways, such as the use of big data and artificial intelligence (McDonald’s Corporation, 2019). Customers may now purchase and pay nearly exclusively via their mobile devices, thanks to an improved mobile app. They also have access to unique bargains, which makes the experience even better. McDonald’s obtains essential information on their viewers in exchange for the convenience (McDonald’s Corporation, 2019). Users may see what items they order, how frequently they visit, and whether they go via the drive-thru or go inside . With all of this information, more focused marketing and offers can be made.

Detecting demand patterns to enhance demand forecasting speed and accuracy

Predictive analytics enhances corporate demand management in the processes of tailoring demand to match manufacturing and logistical capacity, recording real-time demand shifts, and detecting demand patterns to enhance demand forecasting speed and accuracy. Since demand forecasting is a major part of SCM, organizations can utilize predictive modeling or real-time analytics skills on customer data, such as, customer reviews, sales, and behavioral data, to increase customer happiness and produce creative goods. For pricing, inventory, and supply chain management, Walmart, for example, gathers real-time data from their point-of-sale system. As a consequence, a highly optimized retail business can acquire inventory practically just-in-time, regulating its degree of out-of-stock or surplus inventories while also assisting in the optimization of pricing, marketing promotions, and shopping experience and offers.

Furthermore, the rise of e-commerce has opened up a slew of revolutionary possibilities and problems for conventional company models by bringing customers and sellers closely on designated market platforms. For instance, Amazon tracks all their operations, from how buyers search for things toward which commodities wind up in shopping baskets as well as which links are clicked. Other shops immediately followed, and today, the majority of significant online e-commerce firms use big data insights to guide their whole company processes that keep consumers getting back for much more.

Firms lack skilled labor in their SCM to utilize big data

Despite the benefits that the companies enjoy by adopting BDA for SCM, there are a few challenges that firms do experience. First, several firms lack skilled labor in their SCM to utilize big data, the complexity of Big Data created by SC operations necessitates a mix of subject expertise, analytical abilities, and the ability to understand the utility of difficult-to-find data.

Furthermore, the issue of models maturity poses a challenge to the firms’ SCM, in BD model conceptualizations, organizations still have not reached a significant level of intellect. There are certain organizations that are still in the early phases of development. Such organizations are cognizant of BDA and contemplating it for leverage, yet haven’t incorporated it. As Data Rich and Information Poor, organizations in the time of implementation are informed of BDA innovation and have a high degree of data production, data transformation, and management skills, but not advanced analytics capabilities.

Conclusion

In conclusion, technology is rapidly progressing, and it is the right time for businesses to embrace and integrate the current technologies into their operations. More businesses’ SCM are going digital across all sectors, from consumer products to health care, and manufacturing to financial services. According to Veynberg et al. (2020), digital innovation, particularly adoption of disruptive technologies such as BD, BCT, and IoT, will influence every organization’s SCM and practically every employment, and will most likely modify or destroy it. Despite some few challenges that are experienced when adopting such technologies, its benefits are enormous. Adoption of disruptive technologies can significantly transform supply chain management by reducing expenses, streamlining processes, and enhancing convenience. Therefore, companies must link diverse systems, give end-to-end visibility, and gather and analyze huge volumes of data in order for supply chains to reach their full digital potential.

Bringing it All Together

Verses first use case, proof of work app built on its AI platform optimizes supply chain logistics and warehousing efficiency called “Wayfinder”. There is a reason that over 100 companies are lined up to work with Verses, including many Fortune 500 and Global 1,000 companies. Verses AI cracked the code for logistics and, in our view, will be a key part of solving the world’s supply chain crisis.

For a more detailed summary of Verses please follow this link.

NameVERSES TECHNOLOGIES INC. SUBORD
Last Price0.77
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