In this global economy, the supply chain is more complex than ever before. With advancements in technology and eCommerce enabling consumers to order products from all corners of the world at unprecedented levels of convenience, businesses must have efficient logistics networks in place.
The key to a well-run supply chain can lie in understanding its components and having access to meaningful data can be invaluable when managing your business operations.
This post will cover important statistics about the supply chain process so you can get up close with this fundamental component for running successful companies.
Overview of the global supply chain industry
The global supply chain will remain a part of the world economy as the world continues to grow more interconnected. The global market reached approximately US $14.5 trillion according to statistics from 2019 and is projected at 17.8 trillion by 2023.
The global supply chain industry can be realized simply as an interlinking network of businesses and entities that work together with one mind, ensuring there remains a smooth flow of goods and services throughout the globe.
From materials, products or anything else being transported for manufacturing purposes or distribution even inspecting customs and regulations—the supply chain industry plays a vital role in the global economy and supply chain recruiters help find the talent to fill roles in this industry.
Despite the hardships of the COVID-19 pandemic, this industry has been observed as resilient yet flexible wherein companies are adopting new technologies and processes to cater to fluctuating demands and consumer behaviour. The recent descriptions in supply chain is an example of:
- The world’s supply chain industry is valued at $7 trillion by 2020.
- The e-commerce sector is fast-growing with online retail sales pegged at $4.9 trillion in 2021.
- Retailers, manufacturers, and logistics providers rely on each other for supply chain management and product tracking services.
Of course, the global supply chain is far more than just e-commerce. With companies operating in multiple countries and regions, it’s key to have an understanding of how goods are moved around the world moving toward who is responsible for ensuring products get from source to destination.
Key drivers of supply chain performance
Optimization of performance at a supply chain level has become one of the key aspects of modern businesses. Identifying and ranking various key drivers impacting their supply chain’s performance is crucial for companies to ensure goods and services flow uninterruptedly.
Effective inventory management, and effective transportation processes among other very good communication amongst stakeholders engaged across the process supply chain is vital.
Advanced technologies like artificial intelligence, Internet of Things (IoT) devices/technologies, as well as big data analytics have helped companies acquire deeper insights into their supply chain inefficiencies and delays.
Further, supply chain visibility has also become a key determinant of efficiency since it helps businesses to monitor the products as well as anticipate customer demand patterns. In the end, optimization of supply chain performance enables companies to maximize customer satisfaction, strengthen their competitive advantage, and increase their bottom line.
Predictive analytics and machine learning in the Supply chain
Predictive analytics and machine learning are newly emerging technologies that are reshaping the business ways in the supply chain. By using sophisticated technologies such as these, companies can make informed decisions through intelligence on future outcomes.
From predicting consumers’ demand to optimizing inventory and logistics, there is still a lot of potential applications in the process of predictive analytics and machine learning which could be used in use by businesses in the supply chain.
Consequently, more and more businesses turn their eyes towards these fresh innovative tools for getting a competitive edge and improving overall efficiency.
One tool that would help a business harness power of predictive analytics and machine information is Bridgeteams. Bridgeteams offers a full platform that seamlessly integrates into existing supply chain systems and enables companies to better leverage data-driven insights to make the right decisions.
It is important, however, as with any technology, to consider and implement methods of predictive analytics and machine learning responsibly along with an articulate celebration of the potential benefits and risks.
Benefits of digital transformation in the supply chain
Digital transformation has brought about many benefits to the supply chain industry.
For example, it has delivered greater efficiency through automation and real-time goods tracking. This reduces costs that are associated with manual processes in data entry and paperwork among others. Digital transformation also improved inventory management.
The result is better forecasting of demand; the supply chain can more easily react by changing inventory levels when needed. If we are talking about statistics relating to inventory management, then an average amount of inventories held by firms was cited as 10.5 days’ worth of stock for a survey done in 2019.
Moreover, it has improved communications between suppliers, customers, and logistics providers, which has enabled streamlined collaboration and decision-making. On the whole, the advantages of digital transformation in the supply chain are evident and provide firms with a strong competitive advantage as well as increased customer satisfaction.
Challenges arising from the globalization of the supply chain
Globalization introduced in the supply chain has opened new opportunities for businesses around the world to come together, collaborate, and trade goods and services.
There are some challenges with this transformation, which accompany it. The most pressing challenge facing a whole network of supply chains is lack of transparency.
With an intricate web of suppliers, partners, and consumers available all over the planet, it becomes hard to check or monitor products as they move from one end towards another.
In such an ever-evolving relationship between suppliers and buyers, it becomes difficult to make sure that there is total compliance with the laws and regulations related to trade. In addition, due to language as well as culture barriers, cross-border communication can be slowed down because miscommunication results from confusion or misunderstanding arising out of ignorance.
oYet technological innovation in supply chain management has made these challenges less daunting; companies using smart systems can maintain their lead and improve their business operations by doing so.
Emerging technologies transforming the future of supply chains
Emergent technologies are proving to be transformational for the world of supply chain management. Supply chain management statistics reveal that blockchain, 3D printing augmented reality is emerging crucial capabilities for supply chain professionals.
From IoT (the Internet of Things) and blockchain to automation and artificial intelligence (AI), these technologies have been streamlining processes, increasing visibility, and increasing efficiency.
A supply chain that is both faster and more agile to suit customers’ needs and markets hence better equipped to meet those demands. As companies continue to pour money and resources into these technologies, they’re positioning themselves well for success in the future of supply chains.
While there are sure to be bumps in the road and potholes on the way, it’s a journey that will be worth taking if there are any benefits involved. It isn’t about just keeping up with competitors anymore, it’s about being first to market and embracing innovation.
To sum up
The supply chain industry continues to improve and develop continuously in terms of increasing demands for speed and accuracy together with predictive analytics together with machine learning methods by informed decision-making.
Together with Augmented Reality (AR) capturing efficient data analysis, tracking, and transmission of good quantities organizations use digital transformation strategies such as blockchain technology.
These technologies offer benefits regarding driving savings through Analysis while also offering benefits regarding customer service optimization of inventory while facilitating planning aspects. I
n line with this, there are myriad challenges concerning compliance and changes in global economic environments.
New technologies like AI-powered workflow automation revolutionize the management of global supply chains by creating more efficient processes throughout the entire organization.
Need supply chain talent? Reach out to our supply chain recruiters at Apollo Technical
