Published Thursday 5th December 2019
Over the last decade, the way supply chains interact and operate has considerably changed. The integration of new technologies, changes in consumer behaviour and the increasing reliance on globalised networks have already transformed the day-to-day routines of the UK’s biggest businesses. However, despite the degree of change experienced over the last decade, more significant shifts could be experienced in the coming years.
The importance of supply chain optimisation will only increase as industries become more competitive. Therefore, organisations must start looking ahead at how they can create a competitive advantage in the future. Here, we highlight some of the key new technologies that many believe will become the backbone of supply chain management over the coming years.
Artificial Intelligence
Artificial Intelligence (AI) is a long-established technology that many businesses already use. However, in technological terms, AI is still in its infancy regarding its potential to transform how companies operate, both internally and externally. Given the wide range of potential uses for artificial intelligence, it’s no surprise that it is set to play a vital role in future supply chains.
The primary advantage of implementing AI in your supply chain is its ability to handle incredible amounts of data and produce actionable plans. In the future, supply chains will become more complex yet be expected to adapt to change more efficiently than at present. AI will be vital to not only predict future changes in supply or demand but also in providing courses of action, allowing major companies to run their operations smoothly, no matter what the industry throws at them.
Blockchain
A technology predominantly associated with cryptocurrency, blockchain for business will transform how sections of the supply chain interact with each other. At a basic level, blockchain can be used to create data ledgers in which all entries are permanent, incorruptible and stamped with vital information.
The detail and transparency of blockchain provides a level of accountability that is unparalleled, which can make all the difference when interacting with a range of businesses across an extended supply chain. These improvements in data can be utilised by other technologies, such as AI, to provide new insights into current supply chain practices.
The Internet of Things
The Internet of Things (IoT) is one of the most critical emerging technologies when it comes to logistics and distribution. IoT is a technology that allows objects to interact with one another in real-time, providing incredible, instant detail that can be used to reach new levels of efficiency.
As with AI, many companies have already started to implement IoT into their delivery processes, but its true potential will become apparent as it becomes more ingrained across the supply chain. As the demands regarding speed and convenience from customers grow, IoT will be vital with regards to providing an instant service that is manageable on a large scale.
Quantum Computing
Unlike the other technologies on this list, quantum computing is still very much at the development stage. However, given the interest in quantum computing from corporations such as Google and IBM, over the next decade, we could potentially see this play a significant role in business operations. Put simply, quantum computing uses the fundamentals of quantum mechanics to deliver a new way for computers to process information. If successfully developed, quantum computers would be capable of solving problems that are deemed impossible by current computing systems. This problem-solving capability could deliver a new level of artificial intelligence and algorithmic planning that is currently almost impossible to comprehend.
Given the almost sci-fi nature of quantum computing, it’s unsurprising that experts believe workable systems will not be available any time soon. However, as technological giants strive for this technology, we should expect to see improvements across a range of connected fields, all of which are likely to impact major businesses.
Utilising Technology in Your Supply Chain
Many of these technologies are already having an impact across UK supply chains. By intelligently adopting new ideas, businesses can create new levels of efficiency in an increasingly competitive landscape. These emerging ideas could make a massive difference to performance over the next few years, and businesses must be willing to evaluate their current practices, to ensure their long-term success.
Here at Expense Reduction Analysts, we’re experts in helping major UK businesses streamline their supply chains through effective procurement strategies. Our cost reduction consultants have worked across a range of industries and have saved millions of pounds in a variety of cost areas. If you’re interested in evaluating your current supply chain practices in the face of emerging technologies, why not get in contact with our experienced team today?