Throughout 2020, supply chains suffered a number of challenges, from disruptions in production to transportation issues. As companies begin to recover from the pandemic, tightening supply chains is a major focus to avoid disruptions in the future. Technology, such as artificial intelligence (AI) and robotics have become more important than ever to ensure production continues safely under evolving guidelines.
As the previous year took an unexpected turn, supply chain management should continue to prepare for new challenges in the future. Here’s a closer look at three trends to look out for in 2021.
1. Agility Will Be at the Forefront
If nothing else, the pandemic has demonstrated the importance of agility in supply chain management. For supply chains to maintain flexibility and adapt on short notice, experts are predicting a shift from traditional management methods to agile processes. Some of the best ways to increase agility include:
- Allow vendors to dual source raw materials
- Adopt agile product management methods to make smaller changes quickly and adjust based on feedback
- Personalize shipments rather than bulk shipping products to focus more on the end customer and allow for greater flexibility
The pandemic has left many companies with labor shortages, which can have a major impact on supply chain agility. Labor shortages will still continue to affect supply chains in 2021. However, preparing for potential shortages and setbacks will help keep you ahead.
2. Blockchain Will Continue to Rise
To keep up with customer demands and same-day delivery tactics employed by many companies, blockchain technology is moving up the ladder. Blockchain works to improve transparency throughout the supply chain by digitally recording transactions between multiple parties in a tamper-proof way. Blockchain technology can be game changing for supply chain management by:
- Enabling faster, more cost-effective delivery
- Improving product traceability
- Creating better coordination between supply chain members
- Generating easy access to financial information
By adopting blockchain technology, key players such as vendors, shipping lines, logistics managers and customers can all communicate effectively through a single platform. This ensures that everyone is always on the same page throughout the entire process. If a disruption occurs, members in the network can work together to adapt immediately.
3. AI Will Gain Strength
The adoption of AI has been trending over the past decade. However, with global shutdowns, limited capacities in the workplace and social distancing orders, many companies have realized the important role that AI can play in lessening the workload for employees and allowing for greater productivity. One of the greatest features that AI is bringing to companies is the ability to perform basic operations autonomously, which saves a lot of time and eliminates the possibility for human error.
Rather than employees performing repetitive tasks, AI can handle it automatically. This frees up the employee’s time to complete more complex tasks and allows for greater production efficiency. Additionally, AI has the ability to identify patterns in data to forecast demands in the future. With this kind of technology, supply chains can work smarter and more efficiently as a team.
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