Future Impact of Technology on Supply Chain Management

Summary: From AI-powered SCM, we are moving into the domain of cutting-edge technology where machine learning is syncing with online procurement models. The result is breakthrough innovations in the procurement, transport and delivery of materials and products. This will impact the scale and day-to-day operations of fashion businesses globally. 

Supply Chain Management (SCM) has evolved to become a critical component of operations in a fashion brand. It empowers managers to make real-time decisions making their procurement more flexible and demand-oriented. But managers are now shedding their dependence on ‘paperwork’ and moving towards digitization of procurement channels and delivery of materials. 

Procurement managers are adopting newer technologies to tide over disruptions, optimize inventory, and ensure reliable last-mile delivery. While Artificial Intelligence (AI) and Augmented Reality (AR) are already being incorporated into procurement channels for transparency in operations, new-age technologies such as 5G spectrum, driverless transport, robotization, and blockchain are now defining the future of procurement. 

Technology and the future of procurement 

Technology is no longer a handy tool to get things done faster and better. It has become an agent of change. Procurement and supply have traditionally been based on analog data, going through which can be exhausting, time-consuming, and sometimes redundant. AI-powered supply chain management ushered in a new era of resilient and competitive procurement. Now, cutting-edge technology is driving the future of global procurement. Here is how.  

1. Internet of Things (IoT) powered logistics:

Procurement managers are adopting IoT, a network of equipment embedded with AI for exchanging information, facilitating remote access to information on goods in transit and inventory in the warehouse. This is a quantum leap in breaking operational silos and spearheading real-time logistics. IoT wearables are also being used to keep the workforce healthy and efficient by documenting their key performance indicators.   

2. Blockchain in SCM:

Blockchain is an internet-based encrypted ledger that offers an undeniable record of an online transaction. The best part about the technology, which also powers cryptocurrency, is that it leaves a unique signature with every change in the hand of the asset. This validation cannot be reversed making it the go-to option for the fashion industry to create global supply chains that are pilferage-proof. 

3. AI-powered forecasts:

Artificial Intelligence now comes bundled with SCM. According to an Oxford survey, 70% of surveyed businesses admitted to having tested or introduced AI in their processes. AI, along with machine learning, is digitizing data, crunching it for a competitive edge and connecting all stakeholders in a supply pipeline in real time.  

4. 3D printing to optimize inventory:

3D printing can become a catalyst in warehousing inventory-level optimization. Not only can 3D printers be used to produce spares in after-sales service, but also enable inventory optimization by reducing dead stock. Brands can deliver products at short notice without having to stock up on goods. 

5. Driverless vehicles and drone delivery:

Last-mile delivery will never be the same with the advent of driverless trucking and drone technology. This will open an entire area of inaccessible areas, bring down costs of operations and address the acute shortage of skilled drivers. 

6. Cloud technology:

Cloud-based operations are now a part of most global clothing brands. Organizations are cutting down on storage, integration, and security costs by taking their processes to the cloud. This allows them anytime, anywhere access to data, and helps focus on monitoring the processes for faster scaling of operations and building a more resilient procurement chain. It also offers enterprise solutions for effective coordination and use of manpower. 

7. 5G internet:

If there is one thing that will power all commercial operations in future, it is the advent of 5G networks. These networks will come bundled with insane speeds facilitating the transfer of data, exchanging information between humans and machines, and building secure and robust processes for procurement. With Starlink, inaccessible and remote locations can now be reached improving connectivity and adding new delivery pin codes to the logistics database. 

Automate Your Procurement with AI-powered Technology 

AI was just the first step toward the automation of supply chain management. Procurement is now routinely AI-based and is now evolving with new-age technology driven by insane 5G internet speed. With AI-backed supply chains, seamless information dissemination across different levels of an organization has never been this easy. Geopolitical disruptions such as the pandemic and rising gas prices have accelerated this transition towards technology-enabled procurement, transportation and delivery.

Key takeaways

1. Cutting-edge AI, along with machine learning and robots will make processes transparent, impact inventory optimization and lend never-before foresight in planning demand. 
2. Technological leaps such as 5G and blockchain will change the way last-mile delivery is made. Customers will be serviced by drones and goods shipped by driverless vehicles in the near future changing the dynamics of mapping delivery and opening newer and faster routes. 
3. . Technology like the Internet of Things (IoT) and automation will help mitigate geopolitical disruptions and power logistics with unparalleled insights into data crunching and analytics. 

If you are facing troubles in procuring materials from your vendor or wish to streamline your procurement and insure them against disruptions, join hands with Fashinza.  Fashinza blends intuitive technology with day-to-day procurement processes, giving you unparalleled insights with real-time tracking of wares. The tech-enabled platform arms you with a better foresight to tide over global disruptions and mitigate risks in procurement.

Feel free to reach out to Fashinza for building sustainable procurement pipelines and delivery systems.