Trends That Will Transform the Supply Chain in 2020
The new year is upon us, and with the end of 2019, we reach the end of the decade. Over the years, logistics has gone through a massive transformation due to changes in customer demands and new technological innovations. Companies need to deliver their products quicker than ever before, at a low cost, in a sustainable way. Below are the 2020 supply chain management trends that will further these shifts.
Supply Chain Digitization
The implementation of new digital technology in logistics will continue to be priority. Smart, efficient supply chain systems that eliminate silos create transparency and enhance responsiveness. This ecosystem will depend on several critical digital technologies—including logistics platforms, analytics, robots, and even 3D printing. The ultimate goal for companies exploring supply chain digitization? Real-time, end-to-end visibility that provides a competitive advantage, streamlines processes and exceeds customers’ expectations.
Internet of Things
Internet of Things (IoT) is coming of age, as prices decrease, research shows the number of businesses using IoT devices increased from 13% in 2014 to 25% in 2019. The IDC forecasts 13.6% annual growth through to 2022. IoT enables organizations to control inventory, automate stock reordering, and keep track of deliveries, all in real-time. Sensors can foresee wear and tear on equipment, supporting timely ordering of spare parts. Untimalety IoT will increase supply chain transparency.
Building a Greener Supply Chain
The drive towards environmental sustainability is putting increased pressure on logistics managers. Green supply chain management practices can be included in every link of the supply chain from product material sourcing, product design, and manufacturing processes after the product’s useful life. Some sustainability practices are simple – like energy-efficient lighting in the warehouse and planning delivery routes to minimize mileage & fuel consumption. But developing a truly green supply chain requires complete methodological shifts to most companies’ current supply chain practices.
The Normalization of Omnichannel Supply Chains
In response to customer demand, businesses will make significant strides towards offering an omnichannel buying experience for customers. An integrated view of all customer channels and inventory, along with dynamic delivery and fulfillment options and seamless customer service interactions. The switch from single- and multi-channel supply to omnichannel supply requires a complete rethink of supply chain logistics.
Improving Customer Experience
Instead of thinking like operations, putting on the marketer and customer success hats and prioritize the delivery experience the customer receives – branding, UX, speed of delivery, transparency, visibility. Logistics leaders should then focus on reducing these pain points in their teams by investing in technologies that simplify staff workloads and reducing complexity that makes the customer journey as effortless as possible.
In conclusion, the 2020 supply chain management trends focus on technology bringing new possibilities to supply chain management and bringing discrete areas of the supply chain closer together. Which of the new trends will you be adopting in the new year?