Future supply chain management technology

As the UK emerges from the economic slump, companies are preparing for future growth by improving their global logistics operations. Supply chain technology trends are constantly shaped by new business areas, production methods, outsourcing strategies, workflow changes, environmental impacts, globalisation, etc., just as much as by new technologies, platforms and communication standards.

Meeting the industry’s increasing demand for accessibility, mobility and visibility requires comprehensive IT support to provide supply chain information in real-time, connect all supply chain partners and integrate all processes from procurement to fulfilment – ideally through one overarching platform.

End-to-end supply chain systems go along the entire logistics process, picking up the ‘thread’ at one end and following it through to the other end. They optimise both logistics operations and inventory management while facilitating customs and compliance functionality as part of international movements. They provide even greater benefits in terms of process efficiency and cost savings - especially considering that the data flow can also be used for logistics operations and regulatory compliance. Some key areas will increasingly guide decisions on implementing new supply chain technology:

Multi-channel capability: The growth in internet orders and the flexibility of delivery options now offered by many businesses, along with significant increases in international shipping and return volumes has triggered cutting edge developments in supply chain technology. Logistics solutions must now be capable of responding quickly to the requirements of different order channels and process distribution smoothly and efficiently, even across international borders.

Visibility supports supply chain flexibility, the ability to promptly react to supply chain disruptions and the proactive management of supply chain events. Visibility solutions should include reporting tools, which help to manage daily operations and guide strategic decisions.

Transport and inventory management represents a key component in annual operating costs. Implementing IT solutions offers benefits, e.g. streamlined operations, more efficient resource and inventory management, better on-time performance, loading dock transparency, faster replenishment, freight cost transparency, consolidated shipments, optimised routes and long-term carrier relationships. The result: performance improvements, significant cost reductions and potentially lower CO2 emissions.

One-stop-shop solutions: With supply chain management (SCM) technology there is no ‘one-size-fits-all’ solution. What represents a must-have for one company might be irrelevant for another. It all depends on the individual operations and specific business requirements. However, companies are increasingly moving away from ‘patchwork’ system landscapes to discover the benefits of comprehensive SCM systems for managing both logistics and global trade processes in one system. Powerful modular solutions offer many options for businesses, allowing step-by-step implementation of required functions and providing smooth integration into existing system landscapes.

Technology: There are some technologies that are considered highly relevant for future supply chains. Take cloud computing, which - despite security concerns - has become an integral part of today’s SCM solutions portfolio and remains attractive due to the ease of access and implementation, low investment and applicability to different business areas in global logistics. Mobile devices have gained greater importance due to their ability to efficiently support supply chain processes ‘on the go’. Recent years have seen significant advancements in their scope of capabilities, but their most valuable feature continues to be the ability to integrate into ERP and operational systems to gather and share data in a variety of forms and formats.

Comprehensive, sophisticated SCM systems meet the requirements of supply chains in the 21st century: adaptability, collaborative ability, transparency, compliance and speed in all processes. Streamlining processes and cutting costs in the long run are all vital for future business growth. By choosing the right software solution, supply chain managers can future-proof their business and gain a competitive advantage.