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A successful modern-day business relies on technology — that’s something that can’t be denied. But how has technology affected the supply chain specifically? We explore how technology has transformed and helped businesses maximise their supply chain efficiency, including making deliveries speedier and keeping up with fluctuating consumer demands.
Keeping up with your customers
More concerning for businesses, customers now expect more from their service. Many consumers expect convenience from all angles now that they know it’s possible. When they’ve received one service from a business, the bar is raised, and they expect that all their other favourite brands will do the same.
One trend among customers is the ability to have a next-day delivery service (including tracking orders). For businesses, this means that an efficient supply chain with a well-managed inventory tracking system is essential. And, when it comes to getting in touch with the business, customers expect instant contact through the channels that they’re most used to — Twitter, Facebook and instant messaging platforms.
First stages of the supply chain
Products can be manufactured better with the help of technology. In the Digital Age, more products are being tailored to the buyer due to their love for personalised purchases. But, as they still expect a speedy delivery, manufacturing and delivery must be efficient. How has technology created more of an efficient supply chain?
With new advancements and changes in the way the cloud storage works, data can now be stored automatically. As a common error used to be crashes and vital information loss, such technology is a godsend.
A newly founded technology is 3D printing, and could help retail businesses out a lot when it comes to manufacturing. The process of 3D printing is what people are referring to as a form of ‘additive manufacturing’. This is where there are no wasted raw materials. Through this technique, this type of printing is able to create products with time and material efficiency.
The use of robotics can also help production. When it comes to tailored products, this means that they can be created on demand, providing an efficient creation and delivery service.
AI and the supply chain
Artificial intelligence (AI) has become an integral part of retail operations. In fact, according to 2017 findings by McKinsey & Company, taking an AI approach to the supply chain could reduce forecasting errors by up to 50% and overall inventory reductions of between 20% and 50%. This sort of technology can think and learn like humans, reacting to stimuli often without human input, too. In the supply chain, AI is able to assist with packaging, research and development, and inventory management to make processes more efficient.
“This is especially important in the case of industries like fast fashion, where user tastes change very quickly, and supply chains are usually slower to react. In such scenarios, having a direct link between the actual data being gathered and conveying that back up the supply chain means that designers and developers in the business can come back with the right products, in much shorter lead times” commented chief executive of Platform Thinking Labs, Sangeet Paul Choudary.
This technology also has the ability to collect data and determine what retail stores need for the consumer base. Machines with AI abilities can also gather information on location so that warehouses in certain areas can stock more of a product that’s popular in the area. This goes on to improve delivery times and customer satisfaction.
Human error can often have a large impact on operations, but AI can remove this worry for business owners. This process removes the potential error of miscounting inventory or recording inaccurate information, which could then go onto lead to the wrong amount of stock being replenished.
Men’s shirts supplier, QUIZMAN, has a supply centre in Scotland that provides “a strong platform to support future growth”. The company also uses insights and live data on product performance to allow “informed key buying decisions to be made quickly”. QUIZ also implements a test and repeat approach to its supply chain so that it can “introduce new products to stores and websites within weeks of identifying trends and reorder successful products quickly.”
Does this have an impact on employees?
Robotic help can enhance the production line for going out dresses for example, so this type of technology can be key to success. But does this mean human jobs are at risk?
We can’t ignore that technology has been introduced across many leading businesses. At Amazon, for example, employees who were once in charge of securing multimillion-dollar deals with brands have been replaced with software that can predict exactly what shoppers want and how much should be charged.
Because stores will begin to invest in more storage space, they will require human workers to monitor the space. When John Lewis opened two new distribution centres in Milton Keynes in 2016, 500 new jobs were created as a result.
It also depends on the job role of the person. Computers can’t offer compassion or understand clients’ needs in the way that humans can, for example. Plus, people are still required for after-sales services.
The future
If you want to streamline your processes as a retail business, it’s important to look at your current supply chain. When it comes to AI, any platform that has access to customer insights and data has the ability to connect directly to manufacturers to integrate and better inform the process.
As more people want the same amount of choice at a higher speed, this means that warehouses must stock a wide range of sizes, colours and styles at each of their locations — in close enough proximity to anyone who orders. In fact, there are already massive distribution centres, equal to the size of a town, which logistical networks that pick products from the shelves and send them on their way to customers.
There are many roads you can follow. Why not look to implement autonomous electric vehicles that operate through the night, and intelligent algorithms that can predict the most efficient routes for customer delivery.
Sources
https://cdn.businessoffashion.com/reports/The_State_of_Fashion_2018_v2.pdf
http://fortune.com/2017/09/01/supply-chain-manufacturing-technology/
https://www.arnoldmachine.com/6-exciting-advances-manufacturing-automation/
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