Exploring the latest trends in Supply Chain Management 2023
The introduction of new technologies and innovation has caused Supply Chain Management to become an increasingly complex process over recent years.
As such, supply chain management is an exciting field to be a part of, offering the opportunity to constantly expand your skillset and become a leader in emerging areas such as artificial intelligence, blockchain, big data, and sustainability.
Overview
Artificial Intelligence in Supply Chain Management
According to a 2023 report*, artificial intelligence will be worth about $17.5 billion in the global supply chain management (SCM) software market by 2028. The market report also shows that AI-enabled supply chains are 67% more effective than their counterparts, thanks to reduced risks and lower overall costs. In particular, the use of artificial intelligence (AI) for automation is becoming increasingly popular in supply chain management. By utilising Intelligent Automation (IA), organisations can streamline and optimise their processes by automating mundane and repetitive tasks. Such tasks include data entry, document processing, and order tracking. Using IA to replace manual labour in these situations has become a trend as it increases efficiency while decreasing costs in the supply chain process. Food and drink giant, PepsiCo, are at the forefront of this trend, having automated and digitised its supply chains to help streamline production processes, reduce manual errors, and increase productivity.
Blockchain Technology
Blockchain has recently transformed supply chain management by providing transparency, traceability, security, and efficiency to operations. Blockchain technology allows organisations to track and trace products through the collection of tamper-proof data, enhancing security by ensuring authenticity and reducing fraud. One prominent example of the use of Blockchain for transparency and traceability is the American retail giant Walmart’s use of Blockchain to help increase food traceability, to track food contamination back to its source and prevent the further spread of foodborne illnesses. Through automating processes, Blockchain also creates more efficient supply chains, saving time and costs. By creating a reliable, more transparent, and streamlined supply chain management system, Blockchain helps organisations address modern challenges such as increasing globalisation, complex logistics and evolving customer demands.
Big Data Analytics
In today’s data-driven business landscape, supply chain organisations recognise the importance of leveraging data to drive informed decision making and gaining a competitive edge. As a result, there is a growing trend in the need for expertise in big data analytics. Through the collection, analysis, and interpretation of large volumes of data, organisations can gain relevant insights into operations, optimising them for improved results. Through the interpretation of this data, supply chain organisations can identify patterns and trends which help improve demand forecasting, inventory management, and efficiency, while also mitigating risks and saving money. For example, global shipping company UPS utilise radars and sensors to capture data as their packages pass through the supply chain. They then use big data systems to optimise their delivery routes to ensure that packages arrive by their expected date.
Circular Supply Chain
Sustainability has become an increasingly prominent concern for businesses worldwide, with organisations growing more concerned with eco-friendly transportation modes, and how to implement sustainable practices to reduce carbon footprint, minimise waste, and drive environmental responsibility in supply chain management. Circular supply chains have recently gained popularity as a way for organisations to manage their supply chains in a more sustainable manner, minimising waste while also saving costs in the long term. This is the process of repairing, reselling, refurbishing, reusing or recycling used parts to reduce waste from the supply chain process, optimising the lifecycle of products. Technology company Intel have embraced the circular supply chain through initiatives aimed at improving the environmental impact of the organisation, such as repurposing more than 1,700 metric tonnes of material containing precious metals from 40 countries in 2021*. By embracing this circular supply chain, organisations can enhance their brand image and secure resources, while driving innovation and gaining an edge in the rapidly expanding sustainability-focused markets.
Conclusion
As supply chain management continues to evolve, staying ahead of the latest trends is vital for professionals looking to excel in their careers. In 2023 and beyond, businesses will be looking to experts in innovative technologies, such as artificial intelligence, big data analytics, and blockchain; as well as circular supply chains to carry them forward into the modern world. Heriot-Watt University’s online MSc Supply Chain Management & Logistics provides an excellent opportunity for both aspiring and established professionals to gain a comprehensive understanding of these trends and equip themselves with the expertise needed to excel in the dynamic field of supply chain management. Find out more about this programme by downloading our prospectus.
* Global Artificial Intelligence in Supply Chain Management Market by Technology, Processes, Solutions, Management Function (Automation, Planning & Logistics, Inventory, Risk), Deployment Model, Business Type, and Industry Verticals 2023-2028. Research And Markets. Updated February 2023. Accessed July 19, 2023.
** How Intel Supports a Circular Economy. Intel. Updated November 17, 2022. Accessed July 10, 2023.