How to Execute the Supply Chain Transformation
Moving into 2020, companies are setting new goals to improve and ultimately transform the supply chain. The fact is, consumers are constantly expecting faster and more efficient services. What does this mean for the supply chain? As user experiences become increasingly focused on convenience, the supply chain must become increasingly agile to adapt to shifting standards of operation.
The Amazon Effect has impacted and revolutionized consumer expectations on the front and back end of company supply chains by consistently pushing the marketplace closer to the hands of consumers. The newfound ‘anytime-and-anywhere’ retail model has forced suppliers and supply chains to work exponentially faster and smarter in order to keep up with today's modern trade ecosystem.
With the recent advances in supply chain automation, it is increasingly common for domestic and international companies with limited resources at their disposal to fall behind in the cycle. It's important for managers to have the discernment to ensure that they have the right technology for their particular needs, all while evolving alongside supply chain technology.
Starting 2020 on the right foot requires business leaders to reassess the relationship of the company to its customers, with a critical eye toward how supply chain logistical and funding options can facilitate customer satisfaction. Today, supply chain transformation is happening broadly across industry sectors, more so than through individual companies implementing systems that are tailored to their specific requirements. No longer is the remodeling of the supply chain an independent task for the manager overseeing those operations. It is best to make sure that all stakeholders are on the same page, starting from the top before integrating new technologies and processes into existing supply chain systems.
To successfully evaluate the accuracy and efficiency of the front and back end of company supply chains, it's important to consider the customer experience in every facet of the chain including the infrastructure supporting logistics, sourcing, etc. Changing the lens perspective is critical in change management.
In this new era, the goal for many retail supply chains is to be nimble enough to seamlessly adapt to the erratic digital environment and respond to consumer demand for custom products and/or services. One way forward-thinking businesses are making this possible is by capitalizing on the advantages of AI. AI enhances the efficiency of the entire supply chain from A to Z by automating processes such as inventory management, shipping, manufacturing, etc.
IoT is another asset that executives are including in the 2020 supply chain management blueprint. IoT augments the communication of machines and their performance of operational transactions with one another. This technology has the power to revolutionize the monitoring and management of operations.
We predict that a majority of companies with manufacturing and distribution-related supply chains impacted by the Amazon Effect will expand their use of supply chain financing and technology alternatives to amplify their performance in 2020. Transforming and optimizing the supply of products and services along the supply chain to align with the company's bottom line will establish an engine of profitability in this growing digital marketplace.