4 emerging technologies that could transform the supply chain
Can our supply chains go any faster? Find out four ways that emerging technologies are making a difference.
You don't need to be an industry insider to know that the last few years have been a tough time for the supply chain. While the reasons are complex and overlapping, the reality is simple: it's taking things longer to get to their rightful destinations than we're used to.
Faced with this global snarl-up, it's tempting to sigh and add "timely delivery" to a list of life's little bygones. But things could be looking up thanks to a plethora of emerging technologies that are making waves across the industry.
We say "could be looking up" because by definition emerging technologies are ones that haven't yet reached their full potential. A vacuum cleaner, for instance, is very much an emerged technology – but if it was repurposed in an innovative way, it would fall into the "emerging" category again.
But while it pays to be sceptical, we've got to say that things
are looking up. If emerging technologies like artificial intelligence, robotics and drones reach fruition, we could be looking at a much smoother operation than the last few years have given us.
That's good news for the industry, of course – but it's also good news for consumers. At a time when online commerce is at an all-time high, consumers have high expectations of delivery. If those expectations aren't met, businesses can suffer. This is especially true of SMEs that find themselves going toe to toe with many-toed behemoths like Amazon.
So, without further ado, let's look at four emerging technologies that could transform the supply chain for the better.
1. Artificial intelligence (AI)
AI may be the flavour of the month thanks to deepfakes, ChatGTP and those shonky AI-generated images on Facebook that somehow garner thousands of likes. However, its applications are much wider and more varied than that.
The headline for businesses is that AI can unlock cost savings – at least, that's one of the findings of a 2022
McKinsey survey.
A key way it does this is by mapping supply chains with greater precision than boring old humans can manage.
Supply chain visibility is the Holy Grail of logistics. Imagine being able to view and track inventory levels at every step of their supply chain journey – and troubleshoot any disruptions that occur in real time. AI is bringing this closer to reality with every finessing of its algorithms.
2. Demand-forecasting software
OK, we're cheating slightly – demand forecasting is a branch of AI. But it has such powerful potential that we think it should be celebrated separately.
How do you know what to stock? It's a question that's been troubling vendors, suppliers and producers since vendors, suppliers and producers first vended, supplied and produced.
The Roman entrepreneur who sold togas down the market was in a similar position to today's manufacturers. What if demand exceeds supply? How do you prepare for seasonal spikes? How do you know when to launch a new product for maximum effect?
The difference between us and our Roman friend is that we have flexible, automated, cloud-based demand-forecasting solutions available. These put your existing sales data to work, generating actionable insights that mean you'll never be out of stock, under-stocked or overstocked.
So if you think AI is best for generating pictures of Captain Kirk eating a bowl of spaghetti with Theresa May, think again. It's got the power to make your business more flexible, more resourceful and more responsive.
3. Robotics
There are two main ways that robotics has the potential to transform the supply chain. The first is in the warehouse. The second is on the road.
Like all chains, the supply chain is made up of many links. If there's a bottleneck in one, the whole process will be affected. That's why warehouse activity needs to be as frictionless as possible.
Warehouse robotics aren't yet the norm. They're expensive, tricky to integrate with existing systems and perceived as a threat to job security.
However, they have the potential to assist with picking, sorting, packaging, transportation and replenishment in a way that's good for the employer and the customer.
Meanwhile in
Texas, fully autonomous trucks are soon to be on the road. Two companies, Aurora and Kodiak Robotics, have created self-driving trucks that don't need human minders.
As with warehouse robotics, the question of job security is unavoidable. Advocates for self-driving vehicles, however, point to their transformative potential in massively reducing the time it takes to get goods from one place to the other.
It's early days and these technologies are still in their baby-grows. It will be fascinating to see how it all unfolds.
4. Drones
Could drones be used to ease bottlenecks in the supply chain? Industry heavyweights like FedEx, Amazon, DHL and Boeing certainly think so.
At the moment, these companies are mostly using drones for internal shuttle services. FedEx, for instance, uses Chaparral aircraft to carry loads of up to 500 pounds between fulfilment centres. DHL, meanwhile, uses Black Swan drones to deliver loads to commercial customers.
In the UK, you need permission from the CAA (Civil Aviation Authority) to use a drone for commercial reasons. To get this, you need to take an accredited course to demonstrate your competence.
Because of this, you might think that we're unlikely to see delivery drones above the streets of the UK any time soon. In fact, Amazon is planning to get cracking in late 2024 – though only initially for deliveries within a 10-mile radius.
Conclusion
No one would dispute that the supply chain needs a helping hand right now. Could these emerging technologies be the answer? We can't say for sure – but we'll certainly keep you updated about any new developments.
Are you looking for third-party
fulfilment services for your eCommerce brand? At Stowsafe Fulfilment, we're experienced, flexible and cost-effective.
Get in touch today for a free, no-obligation consultation.
