Digitalization is at the forefront of every business sector. The mismatch between the demand and supply for products is affecting businesses on a large scale. The arrival of the COVID-19 pandemic hampered the growth of business sectors. This augmented the dependency on technology and since then digitization has become a norm. Thus, manufacturers are integrating technology to leverage the overall efficiency of business models. Integration of technology into supply chain management is assisting manufacturers in tracking products, helping them to reduce costs and save money, and reducing the carbon footprint of businesses by making them more sustainable.
According to Future Market Insights, the supply chain management market is expected to register a CAGR of 11.4% by garnering a market value of US$ 62.6 Bn by the end of 2031. This is owing to the surge in demand for transportation management systems and the integration of cloud-based applications in supply chain management. The integration of 5G networks along with artificial intelligence, the Internet of Things, and predictive analytics is expected to provide real-time data to manufacturers. This will reduce the overall burden of tracking products and increase the production rate by reducing overall expenses for manufacturers.
Thus, in this blog, we discuss, how digitization is changing the face of supply chain management and is offering a smooth ride for manufacturers.
Automation – Delivering Solutions at Every Stage
Automation has become the heart of several business domains across the globe. Without the integration of automation, tasks become repetitive, the production rates slow down, and the chances of growing the business are financially reduced. As automation uses machine learning, artificial intelligence and robotics, it eliminates repetitive tasks and incorporates operational agility in business sectors.
Companies' development, as well as their relationships with consumers, are impacted as a result of increased logistical expenses. To address this challenge, businesses are focusing on rethinking their existing models to provide a solution-centric approach. Oracle, for example, released additional logistical capabilities under Oracle Fusion Cloud Supply Chain & Manufacturing in February 2022. As a result of the availability of real-time data, the new logistic capabilities will improve customer experience, save costs, and enable enterprises to make choices more swiftly. The technology improves shipment capabilities by allowing for automatic spot bidding and the ability to mix and track several shipments. The use of machine learning within the system aids in the evaluation of macro-level and network-level disturbances. This, in turn, aids in forecasting delivery times and decreases the expenses associated with shipment delays.
Migration to Cloud-Based Applications - Helping Businesses to Thrive
Manufacturers of consumer goods, food and beverages, medicines, chemical, and materials constantly need to keep track of the condition of the products. The damage to these products creates financial losses and can tarnish the image of the company. Thus, cloud-based applications are playing a key role in offering real-time updates of the condition and the quality of the product. Cloud-based applications allow any member of the organization to access and exchange data that helps them to quickly make decisions and resolve issues irrespective of their geographical presence. Owing to the accuracy offered by the integration of cloud-based applications, companies are focusing on migrating their business models from traditional manual methods to cloud-based applications.
For instance, in January 2022, Mahindra and Mahindra partnered with SAP SE to transform its operation journey by integrating cloud-based technology and making their supply chain management system digital. Mahindra and Mahindra will be using the SAP business technology platform to manage their entire workload. The company is focusing on improving its overall functions along with delivering a better customer experience. Thus, the SAP business technology platform will use data and artificial intelligence to transform the core of the business. This will not only decrease the risk of non-compliance but also improve the productivity rate.
With the help of cloud-based applications, companies are tracking products and can dive deeper into other aspects of enhancing business models such as improving scalability, reducing shipment times, and analyzing the overall demand for products.
Up-gradation shaping the Future of Supply Chain Management
The demand for touchless systems, ordering products from the comfort of home, and manufacturers establishing their presence in multiple locations across the globe have made supply chain management essential. Thus, digitization is playing a key role in enhancing the overall experience of managing businesses without much hassle. Moving ahead, small and medium enterprises too are relying on digitization for an effective supply chain management that would grow their business.
Technology developing companies are focusing on customizing applications that would suit the end-user sector and save time. Constant up-gradation of various applications and modifications in machine learning and artificial intelligence will further help manufacturers to identify problems at an early stage. This will help them to save money and quickly fix problems by not disrupting the overall supply chain management.
The future of digital supply chain management looks like a smooth ride for everyone, from manufacturers to consumers. This is owing to the rapid penetration of 5G networks across the globe along with the ease of tracking products and receiving real-time data. Lastly, the increasing reliance of different sectors on the Internet of Things will only help supply chain management to prosper.https://www.futuremarketinsights.com/reports/supply-chain-management-market