Spare a thought for supply chain managers during the Age of Sail. Nineteenth-century shipowners in the great maritime trading centers of America - New York, Boston, Philadelphia, and New Orleans - would wait for months with little or no news of their ships’ fate. Zero visibility of the risks their ships faced, from storms to piracy and political instability, rendered those on shore helpless to intervene.
That is why the most important gains in supply chain technology have been in the area of visibility. But that is not the only area where technology is rapidly evolving. Technology is streamlining cross-border trade, helping predict demand, and improving speed and efficiency at every stage of the supply chain.
In this article, we break down the latest supply chain technology into several categories to provide a snapshot of the current state of the industry.
Supply chains can grind to a halt due to the need to comply with time-consuming and complex regulations including customs and import/export laws. Other delays are caused by a lack of standardization and coordination among agencies, logistical challenges such as transportation and warehousing, as well as issues with documentation and communication.
The good news is that several technologies are being used to streamline cross-border trade, including:
Automation and robotics are being increasingly used to streamline supply chain operations and improve efficiency. This includes the use of drones for delivery and inventory management, as well as the implementation of robotic warehouses and automated logistics systems.
Smart contracts are being used to automate the tracking and verification of goods as they move through the supply chain. As IBM explains, smart contracts use blockchain to automate the execution of an agreement when predetermined conditions are met, and automate a workflow by triggering the next action.
Predictive analytics is being used to optimize supply chain operations by using data and machine learning to predict future demand, identify potential supply chain disruptions, and improve forecasting. For example, companies are using machine learning (deep learning) to predict when trains, tracks, and parts will need maintenance.
IoT technology is being used to increase visibility and control in the supply chain by connecting physical assets to the internet. This includes the use of RFID, GPS, and sensor technologies to track and monitor inventory, shipments, and equipment in real-time. For example, nearly 6.5 million doses of Covid vaccine were wasted due to cold chain failures, which is why vaccine manufacturers are using IoT sensors to monitor cold chain integrity.
Augmented and virtual reality technologies are being used to improve training, collaboration, and visualization in the supply chain. For example, DHL is using virtual reality to train warehouse workers and UPS is using augmented reality to help train drivers.
Overall, these are just a few examples of the many different types of technology currently being used to improve supply chain operations. As the industry continues to evolve and innovations emerge, we can expect to see even more exciting developments in the future.
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