The Future of Supply Chain

Moreover, the international supply chain industry is being forced to become more transparent as several countries have introduced manufacturing and sourcing norms for global companies. To respond to global volatility and rapidly changing consumer preferences, businesses need to become more agile and resilient than ever.

Technologies in Use Today

Parallelly, the world is witnessing significant innovations in digital technologies like data analytics, AI, IoT, and cloud computing. These digital technologies are playing a pivotal role as companies deal with global challenges and move from cost reduction to service differentiation. Businesses across the world are leveraging automation, robotics, artificial intelligence, Internet of Things, and blockchain to become more efficient. For instance, Blockchain is being used to track goods and authenticate data. CargoX has used the public Ethereum network to validate document transactions, securely.

Role of Digital Technologies

Digital technologies have the potential to make supply chains more transparent, efficient, and agile. Moreover, since truly digital supply chains utilize data to assess and respond to changes in demand, they can cater to the specific needs of different customer segments and adapt to changing global influences. For instance, Zest Fresh, a post-harvest agtech company, uses sensors to monitor time as well as the temperature of produce to estimate freshness. It then uses this information for route planning, so customers receive only the freshest produce. Supply chains of the future will see an increase in the use of technologies like drones and augmented reality in manufacturing, warehousing, and distribution facilities leading to better overall performance.

A broader impact of effective digitization is the integration of an ecosystem that previously operated as siloed departments like marketing, product development, and manufacturing. However, with digitization-induced visibility, these silos are likely to dissolve, creating better planning, better physical flow of goods, improved performance management and order management, and increases in collaboration.

Digital Freight Forwarders

Digital freight forwarders use a plethora of digital technologies such as IOT tracking solutions, cloud computing, automation, data analytics, and machine learning to provide transparency, faster responses, lower costs, and accurate forecasting. They provide transparent shipping estimates across different shipping lines, and detailed real-time data on the location and sometimes the quality of goods.

Such platforms also automate back-office processes like paperwork filing and repetitive data-heavy tasks, making processes more efficient and reducing costs for their customers. They often use chatbots to provide quicker responses to customer requests and collect and track large amounts of data enabling businesses to make better decisions regarding shipments. Given the growing demand for faster, more efficient services provided by digital freight forwarders, it is no surprise that the digital freight forwarding market is expected to grow from $7 billion in 2022 to $21 billion by 2027.

As supply chains prepare for an ever-changing and more digital future, businesses face multiple routes to improving performance, and finding the right mix of technologies can be challenging. Being clear about customer segments and performance targets can be useful starting points as businesses embark on their digitization journey. Businesses also need to focus on organizing and analysing data in a way that leads to lead to more efficient processes and better decision-making. While upskilling the workforce and building in-house capabilities can greatly aid digitization, working with the right partners will be a critical factor for businesses to become more agile and responsive. This will, in turn, enable them to tap into future opportunities for growth.