Growth Prospects in Supply Chain


Growth Prospects in Supply Chain

December 14, 2021

The supply chain is historically been ascertained as a black box for companies, as customers are unable to know the exact location and condition of their goods at any particular moment. A lot of reforms have been implemented in the past decade to uncover the blind spots and make the system transparent, but there still is a lot of growth opportunity as far as this sector is concerned.

The remodelling of operating style and procedure will lead to advancement in the following potential areas:

  • Robotics – Autonomous mobile robots (AMR) will change the outlook of the supply chain.
  • A strong collaboration system shall emerge, which will be backed by the Blockchain technology and Cloud-based computing.
  • A Distributed Inventory system will popularize to serve the customers growing demand for faster delivery.
  • Demand for supply chain professionals shall rise and the existing employees will be trained for better skills to cope up with the changing nature of the supply chain.
  • Regional supplier networks have the potential to be tapped into, for the procurement of the goods.
  • Companies will consider the climate risk and preparedness factor into supply chain planning models.

It is very critical to see the bigger picture. These inflection points of a future-fit supply chain will not only drive the progress on top procurement priorities, technology, and skill development but will also thrust the sustainable business plan. There are several factors that will account for this growth.

  • The importance of keeping a track of the processes and making the overall system more agile.
  • The importance of keeping a track of the processes and making the overall system more agile.
  • The widespread adoption of the automated systems and technologically driven management support systems like WMS and TMS.
  • But as cloud-based systems gain popularity, these vendors have proven themselves to be reliable and trustworthy business partners.
  • The cost of last-mile delivery has reduced with more warehouse coming up in prime locations. They are more used just for storage, but also act as points of inventory flow.
  • Supply chain professionals have a greater demand against supply, which has led to increased retention attempts by the companies.
  • Increasing demands for customized goods and services has led to the development of smart sourcing hubs backed by the local network.
  • There is an increasing concern of risk due to supply chain disruption resulting from climate change. Forcing the companies to keep a backup plan for sourcing and order fulfilling.

Businesses will find new ways to be competitive and adapt to the changing landscape of technology integrated operations to keep up with the giant companies. The security issue is also likely to be addressed and systems concerning it will witness a growth. Companies will shift their strategy from cost-driven to growth driven.