Harnessing the power of technology for better supply chain and logistics management

The global logistics industry is changing rapidly to meet the demands of their digitally literate consumers. Even in emerging economies like Thailand’s, disposable incomes are rising, urbanisation is increasing, and consumers are becoming accustomed to the conveniences of e-commerce.

To thrive in this new age of elevated consumer expectations, companies need better supply chain and logistics management solutions. The right logistics model can match the requirements of the business to the needs of consumers, maximising customer satisfaction and minimising operating costs. This leap forward is made possible by modern technology, combined with a keen understanding of business needs.

Blockchain    

Blockchain technology allows business to create secure digital contracts and transactions record. Moreover, it creates trust for all the various stakeholders along the supply chain – suppliers, manufacturers, trader, auditors and government – track all the immutable record of assets and transactions, which automatically reconcile and then authorize for next processes. These features make supply chains both more responsive and more efficient. In the coming years, Blockchain will play an ever-greater role in all aspects of logistics, from manufacturing to payment.

Big Data analysis

Companies can now access and analyse vast amounts of data to inform their business decisions. Big Data analysis enables profound route optimisation, accurate supply and demand forecasting, as well as better inventory and labour management. Big Data analysis can also anticipate future opportunity for both improvement and growth. These valuable insights empower businesses to optimise their services and improve their market positioning.

Internet of Things

IoT solutions are particularly effective at addressing issues within supply chain and logistics management. Theft, IT failures, operator errors, and transportation delays can all be minimised – if not eliminated – by IoT technology. IoT solutions can even provide automated insights in real time. For example, the IoT system at Union Pacific Railroad Company in the US uses acoustic and visual sensors on tracks to reduce derailment risks and predict equipment failures.

Security concerns

All of this reliance on internet-based solutions can understandably raise concerns over cybersecurity. Indeed, it is not only the company’s property that is at stake; the private data of consumers must also be safeguarded. The simple fact of the matter is that old and outdated systems are at much higher risk of successful cyberattacks than their newer, more secure counterparts. Blockchain, for instance, is notoriously difficult to hack. While cybersecurity should always be a primary concern, the solution necessarily involves more and better technology – not a reversion to outdated models.

Synchronisation is key   

The proper use of all the above technological solutions leads to better synchronisation between internal and external parties across the supply chain, which in turn ensures increased responsiveness, accuracy, and customer satisfaction.

Companies across various sectors – from high tech, to automotive, to retail – are catching on to the fact that proper supply chain and logistics management is crucial to meeting the demands of the modern consumer.

The most successful companies are constantly analysing and improving their existing supply chains by adopting new technologies to make them run more smoothly and efficiently. Such upgrades allow them to better manage risks, while responding more quickly to market changes. Moreover, a commitment to understanding and utilising new technologies makes any business far less likely to be disrupted by future technological innovations. Staying ahead on the technological front will indeed put you in an excellent position to pounce on new opportunities before the competition.

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