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The supply chain management market is constantly expanding, all thanks to the industry’s willingness to adopt new technologies. With that in mind, we’d like to forecast the top 15 supply chain technology trends for 2024. These trends are emerging now or gaining traction on the back of industry leaders relying on them.
Technology holds a special place in this field, as any improvements lead directly to process optimization and cost cutting. It’s not just about new ways of handling standard supply chain operations but about making the current way better – be it with AI or cloud systems.
Thus, in order to stay competitive, you need to be taking advantage of these trends.
What follows is a concise forecast of 2024 for supply chain management. We will name the technology trends that impact supply chain management and explain why they matter, as well as offer recommendations based on Amconsoft’s experience in the market. Hopefully, you will find this guide useful in planning your company’s course and setting new goals for 2024.
Top 15 Supply Chain Trends and Innovations
This list will explain what the future supply chain technology trends are, as well as contextualize them within the global state of the sector. These aren’t ranked in order of importance or popularity, as all of these have potential to transform your business.
Logistics & supply chain evolution 1960 – Present times
Better Transparency and Visibility in the Supply Chain
This trend is opening our list because it’s less about specific technologies and more about the direction the whole industry is taking. Recent developments have focused heavily on enabling full transparency at every step in a supply chain – from manufacturer to end-customer. This helps build trust, spot ineffective operations and streamline them, as well as encourage fair pricing and conditions.
Circular Supply Chains
Next in the line of the latest trends in the supply chain is the circular approach.
Centered around preventing waste, this method involves:
- Reusing materials
- Refurbishing and selling goods
- Renting products instead of selling.
With the current push for action on climate change, this trend is gaining steam and is easy to join. You don’t necessarily need to switch to a rental system, of course, but opting to use recycled pallets or containers, as well as reusing plastic and metals, is quite doable. Besides, it helps reduce the cost of doing business and remain just as effective as you were.
Supply Chain Integration
In an effort to reach a wider audience and keep the business more cost-efficient, future supply chain trends concentrate on integrating third-party services. By outsourcing a logistic operation to a vendor specializing in it, companies can save money while raising its quality.
Besides, it helps reach new markets, as you can let local suppliers handle shipping.
They will have optimized routes, a local vehicle fleet, and a network of connections in the regional market. Thus, integrations can multiply organically and help you expand your operations, which
is what many companies are now aiming for.
Internet of Things (IoT)
Collecting data on your warehouses and shipments is essential to finding new ways to improve.
For that purpose, more and more businesses are using IoT devices like tracking sensors for vehicles or drones that handle short-range deliveries. An IoT device means being able to collect precise information such as shipment location, vehicle speed, or even manufacturing machines’ status.
AI and Machine Learning
The human factor can be a rather common cause of problems in supply chain management.
So why not hop on the supply chain trends that utilize AI to remove this risk? AI can predict errors and help avert them, as well as report any malfunction pretty much instantly. Plus, with machine learning, your algorithm will perfect itself and, in turn, help optimize your daily operations.
Supply chain components where AI & ML make difference
AR and VR Technology
Augmented and virtual reality can provide a digital realm where companies can simulate specific work processes. You can experiment freely by testing them out in a safe, consequence-free environment. Even if there’s a million permutations to go through, combining augmented reality and AI automation will let your employees test them all easily.
Blockchain Integration
While many companies are turning to transparency, that only works when all parties involved in your supply chain are on board. To ensure that you’re getting 100% verified and trustworthy data, blockchain can be used to log shipment statuses and financial operations. Doing so on a mutually accessible platform establishes visibility while the blockchain guarantees immutability.
Smart contract capabilities
Robotics and Automation
Similar to AI but already a bit more refined and familiar to businesses worldwide – automating manufacturing, packing, and loading through robotics. The two really go hand in hand, as creating more complex AI algorithms allows one to use more advanced robots. Thus, it’s adding onto other supply chain technology trends centered around smoothing routine processes.
Supply Chain as a Service (SCaaS)
With all the moving parts involved in a supply chain, as well as all these new technologies, 2024 will see many companies opting to outsource a lot of their processes. This results in the popularization
of SCaaS – helping companies improve in areas like:
- Productivity
- Customer service
- Consistency
By letting someone else handle the supply chain, a manufacturer can free up their time and cut their budgets substantially. Meanwhile, the third-party supplier will provide the necessary services
on a professional level, so the customers benefit as well.
Digital Supply Chain Twins
A digital twin is a full real-time system that reflects a company’s actual supply chain and all of its processes. This allows a business to seamlessly share updates with its clients and provides full transparency for all operations. However, there’s a catch that makes it the most niche among technology trends in supply chain management – suitable first and foremost for large enterprises.
The catch is that creating such a system is not only complex, as it requires very precise data synchronization, but also rather expensive. IoT devices are pretty much a prerequisite, as is having access to every step in your supply chain. That means minimizing third-party involvement, which in turn bumps up costs further.
Digital twin model example of maintaining product quality
5G Networks
The main reason 5G helps in supply chain management is that it supports a much larger number of devices than 4G does, as well as offering better connectivity. This means you can always keep tabs on your shipments and receive instant updates whenever it’s relevant.
5G Opportunities for enterprices
Cloud-Based Systems
With 86% of supply chains86% of supply chains projected to be automated with AI support by 2027, cloud systems will only grow in popularity. This solution allows companies to keep their data secure and always online, easy to sync and available from any of their facilities. It guarantees consistency and lower costs, as cloud solution providers take on storage and other infrastructure costs.
Sustainability Technologies
Sustainability as a trend is gaining steam on par with technology trends for supply chain management that aim to automate processes or make data more precise. We already mentioned circular supply chains as one of the examples, but this also includes things like:
- Lower-emission vehicles
- Sustainably-sourced materials
- Localized suppliers
The first point is clear – electric or hybrid vehicles help lower your company’s carbon footprint
and are getting better with each passing year. Meanwhile, sustainably sourced materials require you to buy raw materials from suppliers with the corresponding certifications. That can be a challenge
for some industries, as well as an extra expense.
Lastly, localized suppliers means looking for the closest source of materials for your product manufacturing. This reduces the emissions during shipments and makes your supply chain more
eco-friendly.
Improved Forecasting
For a long time, companies have been using past data and experiences to forecast future market shifts. That works well enough but, with the arrival of modern technology, it’d be a mistake not to take advantage of them. Forecast models can be more precise and offer longer-term insights into the customers and the market in general. You could even predict supply chain trends by determining what this sector will need.
Customer-Centricity
In addition to basing your strategy on cost optimization and more efficient processes, more and more companies are starting to put customers in the spotlight. Today’s digital world encourages customers to learn more about brands and interact with them accordingly. Thus, businesses must adapt to fit customers’ needs and likes, giving them an edge over competitors.
Overview of Supply Chain Technology Landscape
The current trends in supply chain management are what’s going to shape any future changes, just as they were impacted by past advancements. With reports showing that 85% of US manufacturers have adopted AI solutions in some form, it’s clear this has been a real game-changer on the market. This widespread use is the reason why AI will keep growing in 2024.
Similarly, 2023 saw a lot of companies concerned about the lack of trained engineers. That talent drought has been a risk for the last few years. It has led the industry to go all in on automation, potentially helping businesses move to human-less warehouses and factories. Whether that pans out for the best remains to be seen.
Future Outlook and Recommendations
Our main recommendation for 2024 and beyond is to apply these trends to your own context.
While some of them, like sustainability, are pretty universal, others may not be that necessary to you. Assess what you’re lacking right now and how it can be supplemented through new trends like AI, IoT or digital twin systems.
It’s understandable that many of these trends seem exciting, and picking the right one can be difficult. If you need any further consultation, feel free to get in touch with Amconsoft.
We can set up an in-depth discussion to help you navigate these new trends
and choose which ones to implement.
Conclusion
These 15 trends will likely define how any company conducts its supply chain management in the next year or so. If you are interested in keeping up with the industry, consider which of these new technologies you can use. Doing so requires a skilled development team and a firm implementation plan for supply chain management technology trends.
For both of those things, you can turn to Amconsoft. We’ve spent over seven years consulting businesses and creating custom solutions for them. Our team is ready to boost your operations, help you navigate new trends, and be a guiding light with our supply chain management services.
So if you need a consultation on these trends or professionals to implement new features, turn to Amconsoft. We’re always ready, and you can contact us now.