A networked system provides supply chain visibility, which enhances transparency and resiliency. With risk monitoring systems, digital twins, scenario planning and early warning systems, organizations can improve visibility and upgrade their response to disruptions through real-time monitoring and scenario planning.
Along with visibility, a resilient supply chain also requires agility that will lead to information- or data-based actions. To achieve a highly sensitive flow, along with end-to-end visibility, simulation and risk monitoring, supply chain practitioners need to develop capabilities across omni-capable networks. Such operating models and a trained workforce will create a trusted and secure supply chain that aids companies to react swiftly and shift operations when a disruption occurs.
It is crucial to build supply chain sustainability for another reason: the next-generation ecosystem. Along with speed, cost competitiveness and quality, the definition of supply chain has expanded to include social and environmental compliance.
Supply chain experts are adopting tools that enable them to redesign products for a circular economy by engaging suppliers and industry partners. Decarbonization of the value chain is a priority in attaining sustainability. This is a challenge as most companies do not own their logistics and rely on third-party logistics providers.
While new demands are being placed on supply chains, the need for cost reduction and cash extraction remains. With portfolio simplification, SKU rationalization, strategic sourcing, spend analytics, and asset optimization, companies can continue to derive significant cash flow benefits albeit now across the interconnected ecosystem.
Technology: an enabler
Supply chain reinvention is being powered by IoT, data analytics, blockchain and cloud. Digitizing the supply chain, sensorization and using modern digital tools, including analytics to optimize processes, are a crucial aspect in a networked ecosystem that is part of Industry 4.0.
Constructing a digital twin, using AI and machine learning and analytics solutions helps in cycle time predictions and forecasting potentially disruptive events. Distributed ledger technologies allow supply chain stakeholders access trusted data. Smart contracts help remove blind spots and give real-time visibility into various operations.
The future of the supply chain is in a completely autonomous self-driving ecosystem. With new technologies like blockchain, robotic process automation and analytics, autonomous trucks and drone delivery, the supply chain industry will eventually become largely autonomous.