As the business world changes and re-builds itself on a new foundation that uses modern technology, so does the supply chain management system. After all, there is a symbiotic connection between the good operation of businesses and the supply chain of goods and merchandise.

Nowadays, the market is extremely dynamic and if you don’t catch up on trends, it’s difficult to change pace and adapt when change happens. As such, supply companies use various types of advanced technologies (like IoT or Artificial Intelligence) to keep up to date with the forever changing chain of supply and demand. 

In this article, we’ll mention some of the most important trends that are about to revolutionize the world of the supply industry for good. 

Supply Chain Digitization

As smart technologies become more accessible to companies involved in supply chain management, it’s easy to notice that the entire system is quickly getting digitized.

This process was accelerated by the ELD mandate, a US federal government regulation that specifies that operators of commercial motor vehicles must use electronic logging devices (or ELDs). 

Therefore, nowadays all commercial vehicles used for long-distance commercial deliveries must be ELD compliant (read this guide to ELD compliance for more details). This involves the use of smart devices that can track the vehicle, the shipment, and the driver’s behavior. 

In addition, large shipping companies use advanced robotics for handling, storing, and loading various goods and merchandise.

As the process gets more and more automated, there is a wide range of sensors and networks that keep the entire system in check and report the data to the main electronic brain of the company using various IoT applications. 

Increased Consumer Expectations

Broad access to the Internet and social media increased customers’ awareness of delivery and supply practices. Moreover, younger generations pay a lot more attention to the methods and techniques used by large supply companies and demand for more eco-friendly practices. 

Therefore, we see a shift in the type of vehicles being used in the supply chain and there are various tools implemented for the optimization of fuel consumption. In addition, customers have increased expectations from suppliers and the social pressure led business managers into making better use of technology. 

As a direct result, here’s what will change in the supply chain in 2021:

• Shorter delivery time and new methods of distribution - fleet managers can use predictive analytics tools to consider all the factors that may influence a delivery (such as weather, traffic patterns, demand, and so on).
• Complete transparency - as the main stream of data is centralized (usually in a cloud platform), it will be easier to have a complete view of the system as long as you have the right to access it. This ensures end-to-end transparency, which allows higher-ups to make better decisions based on actual needs at the street level.  
• More flexibility - with so many systems that support real-time planning, it becomes easier to make dynamic changes that allow the supply chain to adapt according to demand. In addition, new business models like Supply Chain as a Service have the power to revamp the face of the industry. 

Wrap Up

In short, the supply chain management and the system itself will undergo major changes starting this year. As issues like data privacy and real-time data transmission are solved, the new way of doing business will attract more and more supporters. 

As a result, it won’t be long before alternate methods of transportation of goods will be employed. Therefore, we should be able to enjoy things like drone delivery and fully automatic vehicles in the short span of a few years.