17 October 2021

The 8 Technology Trends in Supply Chain

17 October 2021

Innovation is no longer a differentiator for companies but a necessity. With the advancement of technologies and the diversity of tools available, the entrepreneur who does not leverage the innovations offered loses out, and if this happens, they will most likely be surpassed by their competitors. It is with the conviction that technologies will increasingly be part of daily business that we share the 8 Supply Chain Technology Trends presented by Gartner, an international research organization specializing in technologies.

Before presenting them, we highlight an important point discussed by several university professors during the XXV ILOS Forum. According to researchers and specialists in the Supply Chain, the move that companies have made to innovate quickly is to collaborate with local and more agile software suppliers. According to them, both in the United States and Europe, large innovative companies and/or omnichannel companies like Amazon and Zalando no longer have a contract with WMS and TMS systems from large suppliers like Manhattan, JDA, SAP, Oracle, Highjump, etc., because they understand that these companies end up reducing their capacity and speed of innovation.

1 – Artificial Intelligence

Logistics operations can rely on a level of semi-automatic automation, fully automated, or mixed, depending on the circumstances. And for all these cases, artificial intelligence (AI) solutions can help in process automation, assisting, for example, in demand forecasting, production planning, or predictive maintenance. And, along with automation that ensures process acceleration, there is another advantage: decision-making increases, as the human being is no longer the sole responsible for decisions.

As Christian Titze, a Gartner analyst, points out, artificial intelligence in the supply chain “consists of technologies that seek to mimic human performance and knowledge, as well as improve order delivery and service levels.” By using artificial intelligence capabilities, companies can determine the best routes to speed up deliveries or optimize replenishment. Additionally, Titze notes that artificial intelligence “informs users of a potential failure before it occurs.”

2 – Advanced Analytics

When it comes to logistics management, the impact of advanced operations analytics is significant. And more and more companies are adopting tools that allow for real-time advanced analytics. As highlighted by Gartner, “the availability of supply chain data – such as Internet of Things (IoT) data, dynamic sales data, and weather patterns – offers the ability to extrapolate the current environment to better understand future scenarios and formulate profitable recommendations.”

With the help of instant information, a distribution center manager is better able to make the right decisions for their business. Moreover, real-time access to your business data ensures early identification of failures, correcting them before deviations occur.

3 – IoT (Internet of Things)

According to Gartner, the adoption of the IoT (Internet of Things) is growing in specific areas of the Supply Chain, but it is still rarely part of a complete supply chain process. Some sectors are evaluating the commercial value of expanding IoT beyond its use in operational technology. Logistics groups are already using sensors to track assets or containers.

For the international organization, the IoT could have a broad and deep impact on the supply chain if exploited for greater availability and better resource utilization, improved customer service, better end-to-end supply chain performance, or better supply availability, operational visibility, and reliability.

4 – RPA (Robotic Process Automation)

RPA or robotic process automation reduces costs, eliminates errors, speeds up processes, and connects operations. According to Gartner, RPA has proven very effective in simple use cases, particularly when a third party in the supply chain does not provide an API or other means for automated data integration. However, the potential to achieve a high return on investment (ROI) depends entirely on the applicability of RPA in each specific organization.

5 – Autonomous Devices

According to Gartner, the rapid explosion of the number of connections and smart devices has given a great boost to this trend. Robots, drones, and autonomous vehicles enable new business scenarios and optimize existing ones. Examples include robots working in coordination to create a continuous and connected process in manufacturing plants or drones ensuring inventory quality by capturing images with their camera.

For Gartner analyst Christian Titze, “Supply chain business leaders should evaluate the use of autonomous devices as substitutes and complements for the human workforce. Labor reductions seem to be the most likely factors, but improvements in overall outcomes and productivity will be the main value, regardless of whether labor is reduced.”

6 – Digital Twin

A digital twin is a digital representation of a real-world entity or system. A digital twin in the logistics context is a virtual representation of the relationships between all relevant entities in a complete supply chain, such as products, customers, markets, distribution centers/warehouses, factories, finance, attributes, and climate. Through it, it is possible to have broad visibility of all operations, increasing situational awareness, as well as the quality and speed of decisions.

According to Titze, Supply Chain organizations can use a digital twin for all levels of decision-making, from strategy to execution. “Predictive and prescriptive analytics would be applied to the digital twin so that aligned (and to some extent, automatic) decisions are made,” he adds.

7 – Experience

The experience of people will undergo a significant change in how they perceive the digital world and interact with it. As Gartner points out, the integration of virtual reality and augmented reality with more mobile environments, wearable devices, IoT, environmental sensors, and conversational platforms will extend immersive applications beyond isolated experiences of a single person.

Additionally, according to the organization, Supply Chain leaders can use these platforms to save time, improve safety, and simplify tasks using augmented reality. Supported by this technology, it is possible to visualize a space by comparing different configuration options or use voice-commanded personal assistants to remotely verify product features or work commitments.

8 – Blockchain

Blockchain is a technology record focused on decentralization as a security measure, meaning the information is not centralized but distributed. Through its use in logistics, it is possible to achieve complete traceability of a product, from its origin to its destination. The features offered by this technology lead to improved database management, verification actions, security, analysis, and contract management.

According to Gartner, Blockchain is increasingly being used in the supply chain because it aims at closely aligned goals such as automation, traceability, and security. Among the benefits are cost reduction, risk reduction, increased reliability, efficiency gains, and traceability.

Bring the future into your company

After reading these innovations, how do you see your company in the future?

Remember: investing in technology is, today, essential not only to optimize your production but also to remain competitive in the market. The secret to success in applying innovations is choosing a supplier that is on the same horizon as your company.

And how to find this supplier? Start by evaluating those who are aware of the new technologies.


The 8 Technology Trends in Supply Chain Deagor WMS per ecommerce può aiutarti!


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