Supply Chain Models Will be Unrecognizable by 2025
Developments in technology, increased competition and growing customer demands mean that we will see radical changes in supply chain models over the next 5 to 10 years, according to a recent report by the trade associations MHI and Deloitte.
A number of firms were polled and responded that they are expecting to make significant investment in new supply chain technology over the next number of years. A combination of increased consumer demands and developments in the supply chain are putting the tradition models under a lot of pressure, according to the report. The report also states that companies who don’t adapt to these stresses will find it difficult to remain competitive and complete their orders accurately and on time.
Many supply chain managers have spent the last number of years making improvements in efficiency, but these have only been applied incrementally, and the room for decent returns is disappearing. They need to look at more fundamental improvement solutions to remain competitive. Those companies who adopt technology early will see the benefits in decreased costs and will also gain strategically by being able to deliver items more efficiently.
The report recommends that companies should be adopting the transformative technologies early in order to compete and thrive as the supply chain comes under increased pressure to be more efficient.
The report also states that the majority of companies are working in this way, saying that they intend to make significant investments in supply chain technology over the next few years. Approximately 15% claim that they intend to dedicate over ten million dollars to innovation in this time period.
There is now an imminent wave of innovation—a combination of big data convergence, cheaper computers and escalating customer demands will be fuel for the machinery of product innovation being adopted in the merchandise-handling sector.