5 Great Technologies Streamlining Supply Chain Management

Several technologies are used in supply chain management to optimize and streamline the distribution of goods and supplies. Such technologies include Artificial Intelligence (AI), smart contracts, digital twins, blockchain, Internet of Things (IoT).

In this article, we shall discuss how these technologies help supply chain industries to gain a competitive advantage by improving their operations.

Let us start with Artificial intelligence. AI is taking the world by storm, and the distribution and supply chain industry is no different. With the ease it offers, no industry can ignore its positive effects. It transforms the supply chain industry and helps increase efficiency, improve visibility during logistics and transportation and reduce risk. Furthermore, it helps top management to make informed decisions.

In fact, the distribution and supply chain management industry provides an ideal situation for applying AI. As we all know, supply chains are highly complex. With the help of robust AI technology, businesses can streamline the numerous supply chain tasks, including collection, procurement, stock management and optimizing transportation and logistics management.?

How does generative AI help Supply Chain?

With the help of AI, machine learning (ML) and natural language processing (NLP), generative AI supports the collection of goods and helps management with tasks. It automates the processes while helping employees to improve their productivity by helping them to focus on core aspects that demand the application of their skills.

AI automates inventory management and delivery through the analysis of historical data. It saves time and avoids the risk of errors which in turn results in greater efficiency in operations. It also helps employees to focus on core tasks.

The scope of AI is very vast that it helps recognize patterns and trends to provide valuable insights. For example, the data can be used for forecasting demand. Also, it provides recommendations on inventory levels, gives reorder levels and plans methods for ensuring efficient inventory management while preventing instances of stockouts and excess inventory.

How do smart contracts help supply chain business?

Coming to smart contracts, it helps verify and implement a contract. It is a self-executing program which automates the actions needed in a contract. Smart contracts help automate payments and can be tracked while being irreversible.

Indeed, automation is not just about AI or ML or robotics, but smart contracts are also an emerging technology to automate the supply chain industry. Smart contracts are the standards that implement transactions when certain conditions are met.

In smart contracts, these transaction standards are used to generate invoices automatically based on the conditions agreed upon between the parties. Smart contracts help settle payments with the help of cryptocurrencies in the blockchain. Further, it helps make payments fast and hassle-free.

How does Digital Twins help supply chain companies?

A digital twin is a virtual simulation representing a physical object or a process in real-time. It can be used for recognizing any issues in the system before they happen and thereby helps prevent downtime.

It also helps with future planning and provides opportunities for growth. It enables interaction with the virtual model of a product to check when the physical product has to be replaced and how it should be modified to meet the changing requirements.

In the supply chain industry, digital twin consists of several assets, inventory data, logistics and warehouses. This technology is used for creating 3D models of warehouses to adopt layout changes to check if it would be worth implementing. Transportation and delivery networks use this technology to provide real-time information to enhance shipping performance.

How does Blockchain technology help supply chain management?

During the last few years, blockchain has become the in-thing in the supply chain industry among many other businesses. The very purpose of blockchain is to enable absolute transparency because if there is any ambiguity,? it thoroughly affects supply chain management.

Blockchain helps precise tracking, and enterprises can digitize assets and create decentralized records for all transactions. It helps easily track physical assets, and such transactions are also immutable. Further, it adds to the security compared to cloud-based storage solutions.

The key advantage is that blockchain can help reduce fraud, and transactions remain secure and safe. Indeed, blockchain is an electronic ledger with transactions distributed across computers in a network. Each member has access to the ledger, and it is hard to corrupt it and therefore provides complete transparency.

How does IoT help Supply Chain?

Several industries are gaining exponentially with the application of IoT. The supply chain industry is no different. Regardless of the type of business, IoT helps enterprises to improve operational efficiency, automate tasks and enhance customer experience.

In the supply chain industry, IoT facilitates real-time tracking of goods and therefore improves visibility in shipping and transportation operations. Businesses can monitor the location of shipments, the temperature and several other parameters through the sensors in the containers. It further helps streamline the logistics processes, minimizes delivery time and also prevents loss and wastage.

Furthermore, applying IoT in the supply chain helps predictive maintenance by keeping track of the performance of machinery and equipment in real-time. It intends to reduce downtime and improve the life of the equipment and its efficiency.

Also, optimises inventory levels by monitoring the stock levels, demands and supplier performance. As a result, it minimizes the stockouts and holding of excess inventory. Also, businesses can provide personalized services and enhance customer satisfaction with the help of smart packaging and shipment tracking systems.

Parting Thoughts

The supply chain management technology trends are in their nascent stage. Many businesses are only starting to adopt them. However, if you look for these technologies, for example, IoT solutions, you can start automating your supply chain operations and reduce the downtime in logistics and transportation operations.