Innovation means inventing, creating, renewing and finding, sometimes simply by relying on common sense and existing practices. Innovation is the emergence of new concepts, products, services or processes. In the technological field, it enables a company to modernize and transform itself. It enables them to stand out from the competition, or to improve their efficiency and effectiveness.
What have been the main trends in technological innovation in the supply chain over the last 20-30 years? What are the current trends and their impact on the supply chain?
Cross-functional challenges stimulating technological innovation within the company Supply Chain
The Supply Chain operates in an environment involving numerous internal and external players (service providers, distributors, etc.). In this context, it is necessary to meet a number of challenges.
Satisfying the customer promiseis a major issue, whatever the sales channel. It's about delivering the right product, at the right quality, on time.
There is also strong pressure on costseven more so in times of crisis or fierce competition. Effectiveness and efficiency are therefore key.
Increasingly aware of their social role, companies have also taken on board new issues, such as the impact of their activities on the environment (waste, reuse, emissions), quality of working life and employee safety.such as the impact of their activities on the environment (waste, reuse, CO2 emissions, etc.), quality of life at work and employee safety.
By its very nature, the supply chain is complex and wide-ranging, and needs to be transformed in line with the challenges facing companies.
Numerous technological developments have already had an impact on the supply chain
The 2000s saw a profound transformation of information systems. Specialized tools were developed to optimize Supply Chain activities (forecasting, planning, transport, logistics, management). These include :
- APS (Advanced Planning System)
- WMS (Warehouse Management System)
- Or TMS (Transport Management System).
The supply chain has also used new identification technologies (data matrix codes or chips) to improve product identification and traceability, and mobility solutions (RF terminals, voice picking, etc.) to boost the productivity of warehouse activities.
New innovations to give a new boost to the Supply Chain
Logistics and transport automation
This is a global trend that is already well underway in warehouses: it has helped to improve productivity, manage peaks in activity, and also improve quality of life at work (e.g., by avoiding the need to handle heavy loads). In the most advanced sectors of distribution and e-commerce, some warehouses can be fully automated, from receipt of items to dispatch of orders. Beyond the walls of the warehouse, the future lies in autonomous trucks, providing safety, productivity and energy efficiency. Manufacturers are working hard on this, with the aim of delivering their solutions within the next few years!
Even more massive data collection thanks to the IoT (Internet of Things)
The Internet of Things continues to grow. Thanks to "intelligent" objects acting as sensors, more and more data is being collected every year. This technology can act in real time throughout the physical flow of goods, tracking containers, stock levels and parcel deliveries. For this last point, service quality will improve even further over the last mile, right down to the last meter, with deliveries made as close as possible to the delivery times announced to customers.
Automating certain processes with Artificial Intelligence (AI)
AI consists in implementing techniques that memorize behaviors. This makes it capable of solving problems, acting correctly in a given situation, and making decisions. AI will soon help automate activities such as forecasting and supply management.
Blockchain for a transparent and secure information chain
Blockchain is based on a technology for storing and transmitting data or transactions, organized in the form of blocks. It operates without intermediaries between players exchanging this information. Blockchain thus offers transparency, secure products and flows, and end-to-end traceability. In the future, this technology could be used by consumers to really know the processed products they buy. It could also enable the transport sector to digitize transport documents, which are usually paper-based.
Taking a step back before investing
These innovative technologies open up a wide range of applications for the supply chain, offering the opportunity to further improve performance, agility and resilience. However, as they are not an end in themselves, it is essential to consider the challenges, needs and business use cases to be covered before making any investment. Only then will companies be able to identify the technologies best suited to their needs.
Further information
How to adopt Green Supply Chain ?
Green supply chain, also known as sustainable supply chain, is a corporate strategy aimed at minimizing environmental impacts throughout the supply chain.
What are the 3 types of Supply Chain models?
Which models are Supply Chain and how, at iQo, do we address their transformation issues in response to the ever-changing context? Here are the
Managerial innovation, a lever for transforming the Supply Chain
The Covid-19 pandemic has highlighted the importance and role of men and women in corporate resilience and risk management. Managerial innovation
