logisticstechoutlook

Challenges and Opportunities in Supply Chain and Logistics: Driving towards a Better Future

By Logistics Tech Outlook | Tuesday, November 27, 2018

In critical business concerns, both logistics and supply chain management are firmly established ensuring cost effective operation along with end-to-end pipeline link from the supply chain of the business to the end market. In today’s scenario, the supply chain keeps changing and still remains a challenging task to many industries. The main process behind the supply chain revolves around the main users—the customer, who is in need of seeking benefit at acceptable prices,  and the company which differentiates itself positively, in the eyes of the customer as well as a competitor.

However, with the latest survey done by Eft and Teknowlogi, over hundreds of supply chain executives have suggested that enhancing internal efficiency can lead to reducing supply chain cost effectively. Furthermore, it is seen that improving forecasting results can lead to minimizing the logistics cost until 2015. Other cost-cutting process includes negotiation in the transport contracts and supply of cheaper and better sourcing materials.

As per a latest survey done on business executives to explore and analyze the existing challenges in supply chain, over 22 percent of the respondents feel that the present technology is lagging with real-time visibility constraints and these need to be driven along with IoT and AI, which is found to be the most significant advantages over the upcoming years. Approximately, 19.7 percent respondents agreed that there arise variation in cost factors due to the fluctuating customer demand. 13.2 percent of the respondents prioritize on inventory management as the biggest hurdle in supply chain along with acquiring the right talent and keeping constant pace with the technological gaps.

To overcome the limitations in logistics, certain industry-based technologies have been explored that proves to be disruptive in the upcoming years. Advancement in AI has led to its deployment in the supply chain management due to its capability to analyze numerous data-driven tasks. It is seen that data collected these days continuously increase with real-time data analytics and dynamic supply chain management. Combining AI along with transportation management system helps improve the logistical and business solutions in real time.

In recent years, the next generation warehouse robotics is being introduced in the logistics industry to perform the tasks effectively and to monitor the individual processes. But there also arise limitation concerning cost. Deploying blockchain into the process is also a solution regarding future perspective, but still, there are continuous researches to determine its integration models.

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