3 Technologies that you must consider for your supply chain in 2020
Many businesses in the 3pl, logistics & services industry are beginning to adopt new technologies into their operations and manufacturing processes. They are developing new digital capabilities that create and add value to their customers to stay relevant in an extremely competitive market. Because they develop and adapt, they can compete with the big dogs of the industry by considering these technologies.
Big Data Analytics
Big data analytics is becoming widely used in more than just 3pl logistics & services. Big data analytics collects massive streams of incoming data and builds a structured model to analyze, describe, and predict trends and behaviors. It can improve decision making for inventory management, demand planning, warehousing, transportation, and customer service. As reported by the IDC “By the end of 2020, one-third of all manufacturing and supply chains will be using analytics-driven cognitive capabilities, thus increasing cost efficiency by 10% and service performance by 5%”. Manufacturers and Logisticians can now get a better understanding of customer actions, risk management, asset exploitation, industry trends, and demand by implementing big data analytics. The insights gathered facilitate better informed and more effective decisions that benefit and improve the supply chain.
AI gives supply chain operations the ability to cut costs by reducing errors during data transfers as well as reducing the time it takes. Many supply chain leaders have begun using machine learning, automation, and augmentation. For example, a process that takes your incoming data and creates models and rules automatically would be a function of AI. The more data that comes in, the smarter and more accurate the model becomes. As reported by FreightWaves, Ziad Ismail, CPO of Convoy said “The models performed well even when we were seeing unprecedented demand shocks. There was some additional volatility, but our routing, pricing and availability models still worked as intended, and we were able to flex our capacity up by more than 50% in March to meet the spikes in demand.” As reported by the IDC “by 2021, 20% of the top manufacturers will depend on AI to automate large scale processes and speed execution times by up to 25%”. We are seeing the latest development of autonomous forklifts and trucks that can make operations and logistics safer as well as operate 24/7.
In today's advanced world there is still a need for visibility across business infrastructure. Blockchain technology is still at its early stages of use in supply chains, but the potential seems to be great. Blockchain technology can be used to create a more efficient supply chain by creating a shared standardized infrastructure that is understood by everyone and creates visibility for end-to-end supply chain management. Trust, transparency, and traceability are all results of a standardized Blockchain technology. In a press release by De Beers ,the world’s largest diamond producer, they have taken the steps to implement blockchain in their supply chain program in order to end the violence funded by the exploitive sale of blood diamonds in Africa. While blockchain technology is a simple concept, its application can be nuanced depending on the situation. Finding out how to apply blockchain technology in your supply chain can be the most challenging part.
These 3 technologies all can be great on their own, but if used in unison, they can lead to enormous improvements. Most programs can integrate and interact through the cloud making it easy to implement once you have a plan. Implementing these technologies can keep your supply chain competitive with industry leaders, improve overall operations and logistics, and create a safer working environment.
MVP Logistics is your 3PL logistics partner for supply chain project management, logistics, warehousing and fulfillment, LTL, and other supply chain needs. Our Minneapolis, Houston, and Los Angeles area warehouses provides local, national, and international shipping services. Find your solution today.