Over 57% of surveyed companies believe that effective supply chain management gives them a competitive edge. Plus, over 70% of professionals believe supply chains drive customer service. Knowing the latest trends in supply chain management can ensure your business continues to grow.
Supply chain management has become critical for business success. Your approach can either make or break business success. You need innovative approaches to build resiliency, prevent disruptions, and keep up with competitors.
These innovative approaches are tied to the latest supply chain trends. So, where should your business begin? Read on to learn five of the latest supply chain management trends.
1. Artificial Intelligence and Automation
Artificial Intelligence (AI) is already reshaping the supply chain. The focus on technology such as AI and automation is to streamline tasks. Around 46% of supply chain executives predict that AI and cloud systems will be their most significant areas of digital investment for operations over the next three years.
AI is predicted to:
- Increase interconnectivity
- Provide advanced analytics
- Improve machine-generated information
Technological solutions such as advanced analytics make sense of complex data fast. Many supply chain management tasks are already machine-operated.
Automation also includes robotics. Robotics use Internet of Things (IoT) device information and data to make decisions. They are already being used for tasks such as:
- Data entry
- Order tracking
- Document processing
This supply chain trend is continuing to evolve and reduce manual labor. In order to stay ahead of competitors, it is vital to keep an eye on technological developments. Supply chain managers must know about these solutions to maintain and increase supply chain efficiency.
2. Sustainability Practices
Supply chains continue to focus on improving sustainability. Sustainability means understanding the environmental and human impact of your supply chain.
Sustainability is more than a trend, but in recent years supply chain managers have begun to prioritize these practices. Trends focus on:
- Sustainable product design
- Efficient use of resource
- Renewable energy sources
- Waste reduction
- Energy efficiency
- Social responsibility
Supply chain managers are focused on maintaining the speed and reliability of supply chains. However, they are also reviewing how sustainable each stage of the chain is. This includes checking the suppliers are using ethical practices and maintaining human rights.
It can be challenging to keep an eye on sustainable practices from afar. Many supply chain managers are going further than taking a supplier’s word for it. They are asking for services on the ground to oversee processes and increase visibility over their supply chain.
3. Supply Chain Management Services
More than ever, supply chain management services are being used to manage operations. Supply chain management services allow you to outsource supply chain tasks to an external provider. It may involve managing all tasks or assisting with a specific job, such as moving operations overseas.
For example, you can use a supply chain management service to move services to a different country, such as China. With the support of a supply chain management service, you have minimum supply chain downtime and disruption. They also provide services such as:
- Quality control
- Product design and development
- Supplier verification and factory audits
- OEM assembly
- Sourcing in China
- 3PL services
Outsourcing is a popular choice to maintain the efficiency of supply chains, even as chains become more complex. Moving a supply chain can impact the upkeep of trends and innovations without professional support.
Using a service provides the solution you need to improve operations without sacrificing quality or huge overheads. Plus, a service can help you keep up with other trends. For example, they can do factory audits to check labor conditions and maintain supplier visibility.
4. Circular Supply Chains
The circular supply chain trend relates to the increased focus on sustainability. A circular supply chain rethinks the cycle of traditional supply chains. Instead of disposing of unwanted or leftover items, it reuses them instead.
Items can be reused in different ways, including being resold, refurbished, repaired, or recycled. So, a circular supply chain aims for low or zero waste with this circular chain.
This trend is not only due to consumer focus on sustainability. Consumers are prioritizing environmentally friendly practices, but so are governments.
Supply chains can battle with keeping to government regulations around waste. A circular supply chain is a popular trend to mitigate these risks.
Implementing it takes time but can provide many benefits, including significant cost savings. Plus, consumers, clients, and suppliers are looking for sustainability. Using this supply chain is one way of improving your own practices.
5. Resiliency and Risk Management
The past few years have made supply chain managers realize the importance of supply chain resilience. Supply chain upheavals have switched the priority from short-term relief to structural resilience. It is predicted that in the next decade, companies could face disruptions that erase half a year’s profits or more.
So, supply chain managers are prioritizing ways to manage risks and reform their supply chains. Risks such as transport delays, line closures, escalating input costs, and other supply shocks are why supply chain management services are being used more than ever.
It is essential to be able to manage adverse and unexpected events, which often lead to supply chain disruptions. While many of these cannot be predicted, managers are reducing risks through scenario plans, diversifying supply chains, and receiving expert support.
Many suppliers are investing in new suppliers and expanding their supply chains. However, it is now done more efficiently, with the support of supply chain management services, to reduce disruptions and ensure the successful implementation of new processes.
Hire a Supply Chain Management Service
Supply chains are evolving faster than ever, so it is essential to build resiliency. You want your supply chain to be able to adapt to disruptions, trends, and innovations. Hiring a supply chain management service will help you with the latest supply chain solutions.
China 2 West Services is a manufacturing and supply chain consultancy company that is Western-owned and managed. We can assist you with sourcing, quality control, and other supply chain management needs in China. Contact us today to learn how we can support you.
