Supply Chain Management Practices

Supply Chain Practices

• The current supply chain is a mix of physical and digital networks.
• Companies are changing business models and markets by using new trends and digital innovation to manage the supply chain.
• Customer centricity can be done by combining point-of-sale, channel, and social data to figure out short-term and long-term demand.
• Point-of-sale is when a product or service is bought.
• Channel is how the product or service is delivered.
• Social data looks at human behavior to improve demand management and customer satisfaction.
• Digital demand involves delivering directly to customers for e-commerce and mobile needs through third parties or in-house.
• Third-party delivery is when transport logistics are outsourced, while in-house fulfillment means goods are transported with internal staff.
• Manufacturing strategies involve bringing production back in-house, which was a key focus in the 1980s.
• In-house production is doing an activity or operation within the company.
• Design for profitability is when businesses work together on new product development to increase profitability.
• Sourcing and supplier management focuses on supplier management and partnerships instead of transactional purchasing.
• Sales and operations planning involves understanding, executing, and having a long-term vision for sales processes.
• Risk management is about building internal risk management to handle disruptions from weather, energy, or terrorists.
• Sustainability involves balancing economy, society, and the environment by reducing emissions, conserving resources, and helping marginalized people.
• Transformation and talent focuses on employee development, hiring, and keeping employees as part of the supply chain's strategic plan.

Logistics Practices

• Growth patterns in the logistics industry are unpredictable and volatile, unlike the calculated growth based on product imports in the past.
• Flexibility is needed for the supply chain to meet consumer demands at different locations and times, regardless of uncertainties.
• Globalization is a business growth strategy that focuses on international, mature, and emerging markets.
• Nearshoring is when manufacturing companies bring production closer to end-users because labor and transportation costs are rising in developing countries.
• Multichannel sourcing is Consumers buying products through multiple channels, like physical stores and e-commerce.
• Information technology is increasingly needed due to the growing complexity of supply chains.
• Continuity: Alternative transport modes and routes are needed to reduce delays.
• Sustainability means that customers prefer products that reduce negative social, economic, and environmental effects.
• Partnerships help manufacturers find supply chain innovations and gains through working with logistics service providers.

Supply Chain and Logistics Technology Trends

• Emerging technologies enable machine-to-machine communication through sensors and content.
• New technologies speed up production and create transparency for better decision-making, improving costs by reducing troubleshooting.
• Analytics measures market share and profit margins, while simulations virtually imitate processes and systems.
• Future decisions will rely on real-time information instead of assumptions, helping decision-makers foresee scenarios.
• Supply chain segmentation aligns customer demands with supply response, allowing companies to meet specific needs instead of using a "one size fits all" approach.
• Implementing segmentation requires simulation technology to define the right supply chain for each segment.
• Service orientation involves using supply chain service and control centers.
• Centralized integration of supply chain data enables quick responses to supply chain events and better decision-making.
• Optimization of supply chains involves using processes and tools to ensure the best operation of manufacturing and distribution.
• Supply chain network optimization tools help managers develop strategies for product launches and inventory.
• Scenario modeling and simulation assesses possible events in the supply chain to help managers make decisions about storage, inventory, and transportation.
• Sustainability is a key trend where recycle processes, energy-efficient networks, and waste reduction lead to cost savings.
• Technology supports sustainable and efficient network design.

Logistics Technology Trends

• Blockchain technology uses encryption to securely transfer ownership of value.
• Blockchain enables logistics companies to create failsafe digital contracts.
• It allows stakeholders to create a transparent system for recording transactions, tracking assets and managing all documents.
• Digitalization of the logistics industry has emerged due to rising digital literacy and consumer awareness.
• Digitization can reduce procurement and supply chain costs while boosting revenues.
• Third-party logistics (3PL) manages distribution, warehousing, and fulfillment for another company.
• Fifth-party logistics (5PL) manages supply chains with an e-business focus.
• 3PL and 5PL have accelerated the global logistics market.
• Integration of drones and smart glasses improves delivery flexibility and speed.
• Self-driving vehicles maintain reliability and same-day delivery.
• Smart glasses with augmented reality simplify deliveries with route searches and face recognition.
• AI integrated smart glasses increase the efficiency of first and last mile logistics.
• The use of Big Data and Data Analytics helps the logistics industry to allow stakeholders to make informed purchase decisions.
• Companies can anticipate busy periods, supply shortages, and improve market positions.
• Logistics automation and IoT are gaining traction with the use of interrelated computing devices to transfer data without human interaction.
• Logistics 4.0 is a key trend transforming the global supply chain market.
• IoT integration overcomes issues like transportation delays, operator errors, monitoring, and theft.