We’re willing to bet that supply chain logistics will experience a boom in technology adoption that’ll help stymie some of the challenges the industry faces.
The supply chain has been under scrutiny since the 2020 pandemic that shut down much of the world’s production and distribution centers for several months and led to delays and disruption for several years. This is combined, and made worse in some cases, by a historic labor shortage and rising minimum wages across the industry.
There are new technologies on the horizon to help diminish attrition and make distribution and warehousing more efficient. We have a sharp eye on these solutions to help our supply chain logistics clients implement them into their workflows.
Automation & Digital Adoption
Many top distribution companies are turning to AI for fulfillment help in wake of the labor shortage, forecasted for the industry from 2021-2028. AI can automate tasks, freeing employees to focus on other responsibilities. Throughout operations, AI can provide the tools that warehouse managers need to scale nimble processes solutions quickly. Low-code automation programs can help those managers create, test, and launch customized applications for their business as needed.
The labor shortage is not only on the warehouse floor, but also apparent in a truck driver shortage that’s affecting nearly every business coast to coast. While self-driving trucks are creeping closer and closer to mainstream use, there are ways that some companies are supporting their human drivers during hectic delivery seasons. To combat driver burnout and safety issues, companies like SafeMode have created mobile applications that monitor driving speed, braking speed, fuel efficiency and more. For safe drivers the app has a reward program in place. It’s likely that there will be more applications to support and recognize drivers as businesses work to retain top talent in their delivery and distribution teams.
Blockchain Technology
To fight a rise in counterfeit goods, some supply chain logistics businesses are turning to blockchain technology. This increase in counterfeit goods is partially to blame on the labor shortage with fewer people to check authenticity along the supply chain. But some businesses lacked an authoritative security structure well before labor shortages became an issue. Those businesses in particular can lean on blockchain to help track and affirm authenticity.
Blockchain distributed ledger technology keeps all entries secure – they can’t be altered without knowledge of everyone on the blockchain. This makes changing product data and introducing counterfeit products unlikely.
Predictive Analytics and Demand Modeling
Rent for warehousing is at an all-time high and warehouses are getting larger every year. When every square foot of your building counts, you need all the predictive demand modeling you can get. 2023 and beyond will more than likely see a boom in adoption and creation of demand modeling software to help with inventory prediction and planning to ensure every square inch of the warehouse is being properly utilized.
Robotics
If you ask Dan Brown fans, one perception of the future is a hybridized man-robot race that’ll govern the world. While that’s dramatic, the future for supply chain logistics success isn’t far off. Growing robotics adoption to fully or partially automate routine processes is becoming more and more common across the industry, and there are a few reasons this adoption is attractive. Autonomous mobile robots (AMRs) can help improve accuracy for pick and pack while simplifying the entire picking process. In addition to pick and pack, AMRs are also useful in stock replenishment for high-traffic SKUs throughout the warehouse. These robots also function to help improve put away and cycle counting workflows.
Advanced Reporting
Analytics and reporting to inform daily supply chain logistics operations is a natural next step for the industry after adopting a warehouse management software (WMS). To that effect, in a recent Deloitte survey, more than half of supply chain leaders surveyed said they needed to define and implement an analytics strategy in the next one to three years. We see advanced reporting as a way to proactively use your data to improve processes. This can include data on your IoT device productivity, pick and pack workflows, eCommerce attrition rates, and more.
Circular (Closed) Supply Chain Models
Environmentally friendly practices are on the rise as businesses are under closer scrutiny than ever before. There are a few of the ways some businesses are tackling their carbon footprint including repairing and refurbishing hardware in order to reduce waste. and widening partnership nets to reduce stock outages. Another interesting development gaining ground since 2020 is the businesses that can afford to bring all steps of their supply chain in-house to avoid outages are doing so, investing in additional warehouse space to set up completely closed supply chain models that keep up with customer demand.
Supply Chain Logistics Adoptions on the Horizon
The supply chain logistics space has reached the point at which operations that implement technology to operate with more visibility and efficiency will have a decided edge over those that don’t. We’re working with our customers to evaluate their options and build IT roadmaps that will help them reach their business goals and stay competitive. Contact us to learn more.