2020 was a whirlwind year, unlike any other, especially for global supply chains. The COVID-19 crisis, which ballooned and spread like wildfire across the world, saw unprecedented disruptions and fluctuations in demand planning and supply management.

According to a survey, 56% of SCM professionals faced moderate disruption, while 12% experienced massive levels of disruption. Many enterprises that managed to ride the tide with minimal disruption happened to be in industries that faced lesser impact, yes. But many others avoided disruptions as they had a solid supply chain management strategy in place and had help from robust technologies and processes.

Here's looking at some of the top supply chain technology trends we are witnessing and some predictions around what to expect for the rest of the year and beyond.

1.     Digital Supply Chain Twins

Digital Supply Chain Twin (DSCT) is a fancy name for the simulation model of an actual supply chain. This digital supply chain replica uses real-time data to forecast dynamics. Not only can you use it to understand your supply chain's behavior better, the DSCT also becomes the basis for action plans and strategic decisions in unusual scenarios, like, say, a pandemic.

With a DSCT, you can -

• Test supply chain design changes before investing capital
• Unearth bottlenecks
• Optimize inventory
• Test contingencies and evaluate risk
• Analyze cash-to-serve and cost-to-serve
• Create optimized production schedules to respond to real-time events

The growing conjunction of the physical and digital worlds means that supply chain managers can now derive relevant data from across the physical supply chain and analyze it to optimize operating environments. The concept of DSCT is expected to gain ground in the coming days and become the basis for intelligent decision-making.

2.    Unified SCM Software

Real-time visibility and control over all aspects of the supply chain is a top priority for supply chain leaders. Deploying an integrated supply chain management software is crucial today. Supply chains obviously need robust demand planning software, but the future needs an integrated, data-driven solution.

A unified platform can respond better to fast-changing markets and handle complex supply chain processes by streamlining and standardizing them.

A holistic SCM software should automate repetitive tasks, organize process workflows, and make sense of large volumes of structured and unstructured data from different sources; and yet, you need more. Supply chain tech platforms should now be capable of precise predictions that enable leaders to take quick decisions and preemptive measures.

We are going to see more and more companies partnering with supply chain solution providers to deploy a unified software that delivers on all these criteria and easily integrates with third-party and legacy ERP systems.

3.    On Top of the World - Cloud-Native SCM Platforms

Cloud computing is one of the top three technologies in demand in the supply chain industry. The market for cloud services is on track to grow to over $300 billion this year. Scalable supply chain transformation can happen successfully only if SCM platforms are cloud-based.

As organizations strive for a viable approach that aids remote working and real-time visibility, cloud-based supply chain management is becoming the norm. Not only are cloud-based solutions scalable and cost-effective, but they also enable flexibility, enhanced remote access, and collaboration.

We are also likely to see supply chain control towers being used increasingly, allowing supply chain leaders to stay on top of things from anywhere in the world. 

4.    Automation and Analytics - AI, ML, and RPA

Nobody wants to look at the truckloads of structured and unstructured supply chain data that needs to be organized before it can be analyzed. But the percolation of artificial intelligence (AI) technologies into supply chains, along with subsets like machine learning (ML) and robotic process automation (RPA), are empowering decision-makers to derive greater productivity and accuracy.

Using advanced tools and AI-powered software in the supply chain domain can help companies:

• Streamline inventory and warehouse management processes
• Enhance productivity and efficiency through intelligent automation
• Improve demand forecasting using predictive analytics
• Ensure fewer errors and risks
• Detect potential fraud and mitigate security risks
• Improve lead times and deliver better customer service
• Decrease inventory costs and Opex

The use of RPA to automate repeatable tasks is enabling supply chain managers to allocate their human resources for more significant, high-value tasks.

AI and ML will continue to give supply chain leaders ample opportunities to better analyze purchasing trends, buying patterns, consumer behavior, and market dynamics. They will also improve inventory cost management, supplier management, distribution networks, and fulfillment processes.

5.    Internet of Things and 5G

Did you know that in the list of top technologies for the supply chain, IoT stands second only to data analysis? That's right!

The Internet of Things (IoT) - a network of connected devices - can help create complete visibility across the supply chain.

Tasks like tracking inventory, getting updates on the movement of materials, availability of storage space, and gauging the need to make changes to processes according to the demand dynamics can be carried out more efficiently using IoT.

Experts reckon it won't be long before all devices in the supply chain and production process start communicating over the IoT. The stream of data thus created would be potent and, if put to use, would be capable of triggering a chain of predefined events. Using a 5G network and powerful sensors in the near future can enable:

• Live tracking of vehicles
• Reducing downtime
• Rapid updates on shipping and delivery
• Greater visibility across manufacturing, inventory, and warehousing

6.    Blockchain

A distributed ledger technology that was once just a buzzword but has gained traction, blockchain is an excellent solution for traceability and unification of scattered supply chain components.

Blockchain's decentralized approach prevents data manipulation and helps identify potential issues. By making transactions and data transparent, blockchain technology has helped early adopters reduce friction, increase accountability of all stakeholders, elevate the level of coordination between all the parties involved, and make supply chains more agile.

All logistical and financial aspects of the supply chain can be effectively handled or monitored using a unified platform. Supply chain leaders should be on the lookout for SCM solution providers who can integrate blockchain technology into a single platform.

Apart from these five SCM technology trends, we are also likely to see more companies embrace supplier risk management software to identify and mitigate risks posed by financial, topological, or political instabilities.

RELATED ARTICLE: Learn how rapid prototyping is changing the supply chain

Futuristic (and Ambitious) SCM Technologies

A lot has been written about autonomous cars, self-driving trucks, and robots taking over order fulfillment. While, in theory, they sound promising, we are yet to see such technologies implemented with maximized benefits in cost and scalability.

There have been examples of drones delivering smaller packages, but the large-scale adoption of such machines is restricted for now by inherent limitations and regulations. 

Another innovation that has made headlines is the hybrid robotic shuttle system. While there aren't too many use cases that would prove it to be a worthwhile investment for supply chain leaders, the bots' agility and ability to do labor-intensive tasks are key highlights of the technology.

But who's to say? If aligned with a near-real-time SCM solution and control tower platform, automated shuttles might just dramatically increase supply chain productivity in the future.

Supply Chain Technology - A Long, Promising Road Ahead

New technologies will lead the way for enterprises looking to stay on top of the highly complex global demand and supply networks. The need of the hour is to have agile and flexible supply chains so that companies can respond to unforeseen events and sudden changes quickly and efficiently.

As we recover and regroup following a year of unprecedented crisis, this we can be certain of - managers and leaders will need to find smarter ways to ensure minimal disruptions and maximum productivity, and upcoming supply chain technologies may just hold the key.