Supply chains of the future

What is the future of supply chains?

Supply chains are constantly evolving; technology along with diversification of staff skill set is playing a key part in this development. Organisations are becoming increasingly aware of the changes in their market competition. There is a real need to develop or even re-invent your market offering, to both preserve and develop your own market positioning.

We have seen the emergence of many large organisations in the last few decades, who have shocked certain sectors or completely re-developed the way in which sectors operate. If your organisation fails to recognise the need to develop the supply chain, it can have devastating effects. You’ll lose market share or drop out of the market altogether.

Many organisations are already looking to technology to evolve their existing supply chain operations. But what must you do first?

• Existing processes must be reviewed
• Decide on which data must be cleansed
• Decide how to strip waste activities out of the supply chain
• Upskill staff to help with new ways of working

Organisations that are horizon scanning for the latest applications and solutions are staying ahead of the curve and increasing their product or service offerings.

It’s critical that you constantly review your supply chains for efficiencies and to keep them aligned to your corporate strategy.

Here are just a few things organisations are doing:

What is the future of supply chain management?

Future supply chains will be different for each organisation. However, having a constant awareness to add value and reduce waste will serve your organisation well when reviewing your operational activities. 

Supply chains of the future can be characterised by the three major traits:

• Strategic: Evolving a strategy in a changing landscape
• Dynamic: Responding to technological changes
• Customer-Driven: Adapting to changing customer needs

Advantages of future supply chains

Supply chains are constantly developing and changing, with the end goal of mitigating risk and driving value. The below sets out some benefits of future supply chains.

• Future supply chains are more agile which allows for more flexibility and a rapid response to a change in market conditions
• Future supply chains have efficient risk mitigation and management
• Future supply chains focus on collaborative planning, which results in better performance

Disadvantages of future supply chains

Although innovation and increased technology can increase efficiency and performance, changing your supply chain and how you operate can be challenging. Look at some challenges that you may face when adopting a more ‘future proof’ supply chain.

• Globalisation requires new skills and leadership
• Increased sustainability efforts such as modifications to packaging or increased environmental considerations
• Upgrading an old supply chain can be costly and time consuming

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