We recently spoke with our CTO, Ryan Estes, about the technology challenges supply chain leaders are currently facing, and what the future looks like for supply chain technology.
What challenges are clients facing with supply chain technology?
One of the big supply chain challenges that I’m seeing is the integration of new technologies with legacy systems. Many have long standing processes and systems that are deeply embedded into their operations, and integrating new technologies such as AI and IoT can be very complex and resource intensive.
Another significant challenge is data management and being able to use that data for the purpose of achieving end-to-end supply chain visibility. Ensuring data accuracy, consistency, and security while deriving actionable insights remains a challenging hurdle for us all, particularly due to the complexity of supply chains and the lack of standardized data formats.
The performance maturity of organizations can significantly impact their ability to benefit from new technologies. Mature organizations with well-established processes and a culture of continuous improvement are much better positioned to integrate these technologies more seamlessly.
How does CCi TRACC help organizations overcome supply chain technology challenges?
Continuous improvement solutions like CCi TRACC offer a structured framework of best practices and ways of working that complement these technologies. This framework ensures that organizations can effectively integrate and leverage new technologies within their existing operational processes. At CCi, we also focus on building organizational capability and readiness. By fostering a culture of continuous improvement, we ensure that organizations are prepared to embrace these technologies at the right time.
What are the big trends in supply chain technology?
Probably the number one trend in supply chain technology is artificial intelligence (AI) and machine learning.
They are being increasingly adopted for predictive analytics, demand forecasting and optimizing supply chain operations.
IoT devices which have been around in supply chain for some time, are now being more commonly used because they’re enhancing the supply chain visibility by providing real time data on the location, condition and movement of goods.
An emerging technology trend that’s happening in our industry is blockchain. It’s a powerful tool for improving transparency and the traceability within traceability within the supply chain. Blockchain is being used to ensure the integrity of data and to reduce fraudulent activities.
Cloud technology is enabling greater flexibility and scalability within supply chain management, allowing for real time collaboration and data sharing across global networks. Advanced robotics are revolutionizing warehousing and logistics. At the moment it’s helping to increase efficiency and reduce human error. And finally, there’s a growing focus on sustainability practices, with companies adopting technology that will reduce their environmental impact and promote ethical sourcing.
What does the future look like for supply chain technology?
In the future, we can expect to see greater adoption of autonomous vehicles, drones, and automated warehousing solutions, which will streamline logistics and reduce costs. We will also see a lot of enhanced predictive capabilities, allowing companies to anticipate and mitigate disruptions before they even occur.
Future supply chains will be much more interconnected, with seamless integration across all stakeholders, from suppliers to customers. This will facilitate much better collaboration, transparency, and efficiency. As consumer expectations evolve, we’re also going to see a lot of personalization and customization. Supply chains will need to be much more agile and responsive, capable of delivering personalized products and experiences.
Technology will continue to play a crucial role in developing sustainable supply chains, with innovations aimed at reducing carbon footprint, optimizing resource use, and enhancing circular economy practices. As we become more digitized, having robust cybersecurity measures will become increasingly important to protect against cybersecurity threats and to ensure data integrity.
Finally, what’s your advice to supply chain leaders navigating technology challenges?
Navigating the current supply chain landscape requires leaders to be strategic but also cautious. Be aware of potential pitfalls and challenges associated with new technologies. Common issues include integration difficulties, data security concerns and there’s a risk of investing in technologies which may not deliver the anticipated ROI. Always conduct a thorough due diligence and take a staged approach to implementations. Start with a pilot project to test the feasibility on a smaller scale so you can learn and make adjustments for the wider rollout. Finally, always invest in continuous development and learning for your team, and foster collaboration and communication across your organization.
To find out how CCi can help your organization embed the operational excellence practices that support the adoption of new supply chain technology and unlock value in your supply chain, contact us today.