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Supply Chain
10 Ways the Supply Chain will Evolve in 2018
By Michael Skinner, Editor T
he supply chains connecting in- novation to the consumer are growing more complex by the
day. It is becoming impossible to process the massive amount of infor- mation that impacts the supply chain without something much more so- phisticated than a spreadsheet. In 2018 we can expect several trends to be brought to the fore, most of them dealing with better methods of gath- ering and organizing large amounts of data.
Data Rules. Big data and cloud com- puting are part of just about every current trend debate. If this year’s CES in Las Vegas showed us any- thing, it is that the digital thread will be woven through everything that we do. This year we will be further con- fronted with our human inability to derive, manage, organize, and use huge amounts of data to make deci- sions. The number of variables in the supply chain is growing every day.
Data is the fuel that keeps the supply chain running, and the major func- tions this year exist around data ma- nipulation.
Supply Chain and AI. Low-level artificial intelligence (AI) is becom- ing ubiquitous. Over the last year AI has been integrated at various levels into consumer devices and is being used in the supply chain to predict demand and to influence behavior. Expect much of the same as AI be- gins to process the data we collect to recommend new suppliers and trans- port methods, and even to design products.
Software Beyond the Spread- sheet. The humble spreadsheet has long been the go-to tool for supply chain professionals, who have found it useful to be able to visualize the entire supply chain at once. This is no longer even near satisfactory. Companies are leveraging their own
experience and in-house systems to create new products and services, based around user-friendly software. These custom dashboards can be viewed around the globe by any stakeholder at any time. Solutions like Jabil’s InControl platform SaaS (software-as-a-service) rely on decades of experience and deep inter- nal development resources.
Total Traceability. It used to be that only a few high-reliability indus- tries required full traceability. Not anymore. In fact, the lines between industries are now so blurred that it makes little sense to differentiate. Assume that every product build, every prototype and every sector needs 100 percent traceability along the entire supply chain. The risk to a brand of an embarrassment in the supply chain is immense, as is the risk of counterfeit parts or conflict materials.
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Mass Customization. As con- sumers, we feel we know more about what we need than the designers at the brands we trust. We love to cus- tomize products, and brands love to give, or better still, sell us, the option to do so. This is a whole new dimen- sion for supply chain managers and manufacturers alike. If every prod- uct is unique and required immedi- ately by the user, the supply chain needs to be designed to suit, with even more agility and flexibility.
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Warehouse Automation. Robots are now widely adopted in many en- vironments, at consumer, retail and industrial levels. Heavy or cumber- some products, high shelves, high volumes, and product variety are all handled well by robots or other auto- mated systems. Amazon is one of the leading logistics companies in the world and many of the company’s warehouses operate lights-out, 24/7,
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with robots moving rapidly to store and pick products.
Autonomous Delivery Vehicles. The final mile of the supply chain is often the most challenging. Conges- tion is only one element that leads to delivery failures, along with the “no- body home” problem. Some couriers are now trialing systems with cam- eras that allow trusted couriers con- trolled access to a home to deliver packages in the owner’s absence. Next up are autonomous vehicles that can make deliveries without a human driver. This is part of a larg- er smart city infrastructure that could enable driverless vehicles to transport goods around an entire city. Drones are already being used to deliver relief to victims of natural disasters, it will not be long before they are being deployed to the home or office.
Smart Packaging. As our shopping habits continue to move further on- line, packaging is becoming increas- ingly important. It is often the first proof point of a brand’s quality. Pack- aging design is changing quickly to deliver the brand promise directly from the warehouse to the consumer. Smart packaging is being used to en- sure that transit is tamper-free and meets the environmental require- ments of the product. Expect more intelligent packaging that will gain the ability to highlight user habits or the need for replenishment.
IoT and Mobility. The Internet of Things (IoT) has the potential to con- nect nearly every item in the world. That connectivity offers supply chain managers the ability to operate in re- al time with more control. The rollout of 5G will offer that connectivity on a mobile platform, with much greater data transfer speeds and almost no la- tency. This is likely to be a game- changer in the way that many IoT- based ecosystems operate, from the supply chain to the smart city. Mobil- ity and intelligence go hand in hand and connectivity to the cloud is essen- tial to delivering the promise of IoT.
3D Printing. Lastly, when we change how we make things, we must change the entire supply chain. 3D printing is reaching a tipping point and its industrialization is well underway. With demand for mass customization, or personalization at scale, 3D printing seems ideal as part of a blended manufacturing process that combines standard plat- forms made in large factories with customization close to the consumer. More than merely changing the sup- ply chain, 3D printing could funda- mentally change the distribution of manufacturing. r
March, 2018
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