How Supply Chain Management is Significant for Businesses Today?

The global logistics industry has grown tremendously over the years and the last decade marked significant improvements in the logistics department, especially with the help of digitization and solutions in supply chain and logistics.  With the advent of technology, the capabilities, functioning of every department of logistics i.e. from packaging and labeling to shipment, transport, and last-mile delivery have changed immensely in the industry.

The logistics industry is on the edge for enormous growth and is expected to reach $12,256 billion by 2022. As the new decade started, efficient logistics play a crucial role in growth in the supply chain and new trends are ready to shape the future of logistics. However, changes in consumer demands, market competition, the rise of e-commerce also paved the way for a rapid transformation in the industry.

Commenting on the growth of the supply chain market, Sunny Nandwani, Founder, Managing Partner, Acuver, says, “Supply Chain Visibility (SCV) is no longer just a great thing to have for companies looking to digitize supply chain; in 2019, it was a prerequisite — and in 2020, it needs to take another step forward to becoming real-time. These real-time data insights would enable us to transform, convey efficiencies resulting in improved customer experience. Hence, this year will see a heightened focus by supply chain enterprises implementing cutting-edge SCV solutions into their operations. Another technology trend that we witnessed in 2019 was a dramatic rise in smart tech for tracking purposes in last-mile delivery. End to End connectivity in last-mile delivery is one link in the supply chain already well into transformation. Information captured when applied through analytics allows isolating cost-impacting features too”.

With the emergence of artificial intelligence, many businesses across the world have used AI to improve speed, enhance supply chain productivity and restrain the costs. AI will continue to change the world of logistics with the learning algorithms, geocoding abilities, route optimization, automation, demand prediction and more.

Four years back, five percent of the deliveries were same-day deliveries compared to 40 percent today. As convenience is the new king in the market and the demand for deliveries and tracking facility is forcing the supply chain enterprises to partner with 3PL service providers and other tech start-ups for better running.

However, the modern logistics adopts processes which are sustainable and environmentally responsible to reduce the ecological consequences of traditional logistics operations, which is often termed as ‘green logistics’.  Supply chain businesses have already started implementing green logistics to reduce the energy consumption in transportation, recycling durable packaging, reusing and more.

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