Next Gen Supply Chain Solutions Look Very Promising!
Technology is the buzzword in today’s increasingly competitive environment. In order to get an upper hand over your competitors in this complex business environment, it is critical for suppliers to embrace and advance supply chain technology. According to IDC Manufacturing Insights, suppliers that focus on technology reap concrete benefits in the form of:
- reduced order delivery time
- high inventory turnover
- better cash-to-cash cycle
The two-way collaborative communication between suppliers and buyers is important for the growth of a dynamic supply chain that can seamlessly respond to ever-changing demand and market conditions.
With manufacturers having better access to technology, it facilitates the process of information exchange. However, the number of companies continuing to use non-electronic methods is significantly high. Less than half of those surveyed by the IDC use electronic methods for information exchange. The benefits of using technology are umpteen, unlike non-electronic methods that are not only costly, but also time-consuming and difficult to backup.
The National Institute of Standards and Technology’s statistics show that the manual or non-electronic management of data costs businesses dear- almost as much as 10 percent of the revenue.
Intelligent Value Chain
The next generation supply chain will be ruled by the influx of data, with the emergence of new data collection technologies, including Smartphones, Internet of Things (IoT), Smart Sensors and Radio Frequency Identification (RFID).
Powering supply chain 2.0, the cloud supports dynamic business environments, increases access to real-time data, workflow, and alerting capability, and facilitates integration of existing and new applications, while significantly lowering the cost of enterprise-level software. It is also designed to help rapid on-boarding of suppliers, manufacturers, and channel partners.
The biggest dividing line between the current supply chain and the value chain is the ability of the latter to convert the volume of inward bound information into actionable data with the use of emerging technologies, such as Big Data, cloud, and IoT. Facilitating a collaborative business environment, technical developments have helped improve information collection, sharing, and analysis. (This is what advances the Supply Chain into the Value Chain.) Not only that, value chains are designed to help improve risk management.
The IDC report finds that there has been increasing pressure from suppliers, competitors, and customers and that has played a big role in facilitating technological implementation, resulting in significant investments in B2B technology across different industry verticals. Technology is likely to be an active growth partner in the next-generation supply chain, helping businesses grab new opportunities while earning customer loyalty. Leaders of supply chain 2.0 derive inspiration from within to leverage technology for new opportunities.
Slow or late adoption is related with infrastructural strength. However, that can and will change with the creation of new opportunities as a result of increasing government investment in infrastructure. Better access to the Internet is expected to encourage online transactions between businesses and boost collaborative environments.
Newer tech involved in Supply Chain Solutions and more options for customers in choosing suppliers will encourage positive relationships, create a responsive environment, and drive customer loyalty.
Contact Us to find out how we can start helping you boost your Supply Chain Solutions. We can also save you money on shipping as well as other areas of eCommerce like Managing Your Customer Service, Kitting and Assembly and Convention Logistics.