Supply Chain Revolution: How will technological innovation dominate the game?

Technological innovation is becoming the main driving force in the supply chain field in 2024!

Why do you say that? Because it fundamentally changes the management methods of internal logistics, procurement, distribution, inventory, transportation, and warehousing within the company. Tools such as AI, the Internet of Things, big data, machine learning, data analysis, and robotics make the supply chain from the source to the final destination more efficient.

According to KPMG’s prediction, artificial intelligence will continue to play a crucial role in the supply chain industry in 2024, with Generative Artificial Intelligence (GenAI) expected to stand out due to its ability to process large amounts of data and analyze more complex variables.

It also predicts that the use of big data and data analysis will increase, especially in the fields of operations, sales, and customer service, while the application of technology in sustainability strategies will also increase.

Faced with this situation, enterprises face a significant opportunity to ride the unstoppable wave of technological innovation, adapt to and thrive in an increasingly digital and competitive environment.

The potential benefits of these emerging tools are infinite: enhancing the visibility and transparency of the value chain, making transportation routes more efficient, intelligent inventory management, and customizing customer experiences.

This wave of technology is universal, reaching businesses of all sizes and regions, from cutting-edge startups to mature multinational corporations.

Fortunately, many companies have already embarked on this journey of change.

According to predictions made by Oxford Institute of Economics and SAP based on interviews with 1000 executives from 10 countries, 59% of companies are prioritizing supply chain investments to enhance their future status.

A survey by McKinsey of over 250 carriers and suppliers worldwide shows that since 2020, most supply chain companies have maintained or increased their technology investments even in challenging market conditions.

However, the path towards digital transformation is not always smooth sailing.

For modern operating enterprises, data security has become a major concern, and there is concern that the increase in system interconnectivity may exacerbate the risk of network attacks.

Fortunately, there are many powerful and reliable solutions in the current market to address internal and external threats.

Another growing concern is supply chain disruptions, which can stem from political or economic instability in a country, or natural disasters such as floods, storms, or earthquakes. These interruptions may seriously affect the operational efficiency of the company and its ability to meet customer needs.

A study by Capgemini involving 2000 companies in 15 countries showed that 89% of organizations believe supply chain disruptions are the main threat to their business growth. To mitigate this risk, some companies are exploring a reconfiguration of their supply chain networks.

However, technology plays a crucial role in successfully addressing these uncertain factors, providing solutions to improve visibility and traceability, enabling companies to monitor the flow of the entire value chain.

SAP Integrated Business Planning Cloud (SAP IBP) is a model tool that is a cloud solution focused on integration, sales, and operational planning for the supply chain. SAP IBP promotes sustainable and risk resistant supply chains by enabling fast and flexible planning, helping businesses effectively manage potential disruptions.

Faced with the rapid development and iteration of technology, the supply chain must reshape itself, embrace new tools to enhance flexibility and resilience.

The technological evolution of supply chains has shown significant advantages in industries such as retail, automotive, food, pharmaceuticals, and electronics.

Modernization is imperative, and companies that take a slow step in transformation will soon be surpassed by more agile competitors.

Although the path of transformation is full of challenges, the returns brought by digital supply chains are undoubtedly worth striving for. The companies that are beginning this transformation are laying the foundation for future success.

On this journey to the smart supply chain, Acloudear has become a trusted leader with profound industry experience and innovative technological strength. No matter which stage of transformation your business is in, Acloudear can provide customized strategies and support to help you move towards excellence. Click below to read the original text, let’s set off immediately!

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This article "Supply Chain Revolution: How will technological innovation dominate the game?" by AcloudEAR. We focus on business applications such as cloud ERP.

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