The covid-19 pandemic, with its two-year-stay, will continue to have a expansive impact on our lives in 2022. This implies that the digitization and virtualization of business and society will continue at an expedited pace.
The electronics sector appears to be overgrowing, owing to increased demand from developing countries. Before the virus outbreak, due to increased demand, electronics production skyrocketed, accompanied by a surge in investment. Electronic manufacturing industry growth projections in 2022, indicate that the industry is expected to grow by roughly 8% by 2025. Organizations are now investing heavily in supply chain technologies to address data quality, compliance, risk management, connecting silos, understanding fast-changing markets, costing, and supplier relationships. Applying technology-driven models across supply chain operations is the way forward for companies to better prepare for the risks of supply chain management, product development, and sales lifecycles. Around 72% of large companies require a minimum of 99.99% uptime. This kind of intensive demand, can only be achieved with automated supply chains.
Here are five supply chain technology trends to look out for in the coming years:
- Digitisation of Manufacturing – By the end of 2022, three-quarters of companies will have digitized their supply chains. The opportunities surrounding digitisation have made it possible for supply chains to access, store and process a large quantity of data, both from within a firm and externally. For example, manufacturing firms are now able to obtain individualized customer data to personalize the sales process, product design and service. One application of this is through smart devices which record and share data in order to identify opportunities using learning algorithms. Digitisation also allows for demand information to be shared directly to actuators in manufacturing plants, leading to shorter conversion time and efficient service level. The amount of data stored and distributed has also enhanced, both anticipating accuracy and assistance to prescribed solutions.
- Visibility into Inventory Movement – There’s no doubt that organizations are willing to digitize their supply chain management from the conventional approach to improve dexterity, efficiency, and visibility. Supply chain visibility is not merely having expertise into your internal data, but having connected data from manufacturers to final delivery of products instantly accessible when needed. Most companies are forced to react to this disorderly environment without key information. Visibility is one of the most crucial aspects of supply chain automation.
- Improved Forecasting – Supply chain forecasting models are becoming increasingly sophisticated. You can use forecasts and incorporate them with AI and machine learning, to take into account periodic trends, marketing activities and other factors to precisely predict consumer demand. You can then translate this into supply needs all the way up the supply chain, so that inventory levels are maintained through meticulous, early management of supply and manufacturing orders. Companies are investing heavily into Improved Forecasting in order to analyse customer buying behaviour and be prepared for any or all kinds of demand. Data collected over a prolonged period of time, helps establish better distribution models and improve fulfillment forecasting, all with the goal of keeping customers happy and loyal. Trends indicate that Unplanned outages could be avoided with predictive maintenance by up to 50%.
- Artificial Intelligence (AI), Internet of Things (IoT), Augmented Reality (AR) and Cloud Technology – Automation of supply chain consists of a toolbox of options that help companies understand complex content, enhance human performance, and take over routine tasks. Trends show that AI and analytics are going to be the future. AI helps supply chain leaders solve long-standing data silos and governance challenges. Its capabilities allow for more integration and visibility across networks of stakeholders that were previously remote or disparate. IoT already plays a significant role in the supply chain, but it will likely continue to grow in importance with increasingly diverse applications. IoT in manufacturing and supply chain can also be used to improve warehouse management, fleet tracking, inventory control, and even technological and mechanical maintenance. It could be even used to create entirely smart warehouses and fleets, increasing the efficiency. Trends show that in just a few years, 50% of companies could be using other advanced technologies to support supply chain operations. 50% of IoT spending is set to be focused on transportation, logistics, and discrete costs. Alongside this, cloud computing and smaller sensors have allowed more devices to be quickly and easily interconnected. Virtual Reality (VR) and Augmented reality (AR) have become increasingly helpful in several capacities. For warehouse managers, AR results in reduced inspection time, as workers can better identify and fix errors before a product is transported.
- Real-time Supply Chain Analytics – Supply chain leaders need access to real-time data to make informed decisions. It also helps them deal effectively with associates, contractors, and other related functions. Real-time data also helps recognize probable interruptions and increases perceptibility across the supply chain.
Moreover, you can use AI-powered analytical tools to improve scheduling processes and draw actionable insights. For instance, using analytics, you can help prevent an out-of-stock situation and adjust inventory accordingly. Smart factories, independent manufacturing robots, and automated supply chain management systems are being implemented by some manufacturers in an amalgamation with huge amounts of data provided by IoT devices to create a much more efficient operation. If these examples continue to prove successful, we can expect a wider adoption of automation technologies in the FMEG sector, in the coming years.
