Technology remains vital for the advancement of supply chain organizations. In a recent Gartner survey, 61% of respondents say technology is a source of competitive advantage with many identifying several emerging technologies as important investment areas.
The survey also found that by 2026, more than 75% of commercial supply chain management application vendors will deliver artificial intelligence (AI) and data science.
As the supply chain evolves, industry officials are seeing a multi-faceted approach to advancing the technology behind shipping operations. Artificial intelligence, generative AI, machine learning, digital twinning and understanding how to make better use of internal data are the future of technology in logistics.
“Logistics in itself is a really critical function within the supply chain that has a lot of tentacles in the process -- from planning all the way through eventual customer delivery … logistics is touching all of these functions in some way, shape or form throughout the entire process,” said Mark Baxa, President & CEO of the Council of Supply Chain Management Professionals (CSCMP). “When you really peel the onion back, logistics are an integrated set of processes and physical movements that interconnect all of the functions of supply chain.”
In episode 15 of Banyan Technology’s Tire Tracks™ podcast, Baxa explains what he calls the “multi-tentacle” approach to technology in the supply chain and how businesses are looking for ways to optimize their shipping operations.
“We look at a better way to either predict demand, look at supplier working relationships, understand where our risks are, all of these things, and many more are coming into play,” he said, “People are continuing to look for ways to optimize their standardized business practices using digital technologies … to help do more predictive analysis and better predict better outcomes are things that are a big thirst for many, but also a concern for others.”
One emerging technology that will impact supply chain management is digital twin of the customer (DToC). It enhances the ability to mitigate risk, manage supply and demand, and enhance customer service. According to Gartner, 60% of industry officials are currently piloting or planning to implement supply chain digital twin in their organizations.
“Digital twins are rampant and very apparent,” said Baxa. “[An example of] the perfect digital twin is in your car driving on the road with a GPS telling you where to go and having a mirror digital copy of what you're actually doing at the same time.”
Those involved in the supply chain are given access to technologies, products, goods and services that society needs, not only to survive, but to prosper. Baxa said that is the key motivator for all supply chain professionals.
“That's the context I want people to hear. You're really doing something for the greater good of mankind, he said. “I hope everyone now knows, through the recent experience that we had that not only what supply chain is, but what supply chain does. And that is this is the engine that helps people live their lives and prosper. We don't have our livelihoods and we don't we can't prosper without supply chain.”
To hear more about the multi-tentacle approach to shipping technology, visit https://www.banyantechnology.com/resource/leverage-data-for-optimized-shipping-operations-episode-15.
All new episodes of Tire Tracks will be posted monthly on all major podcast channels including Spotify, Apple Podcasts, and Google Podcasts. Video versions of the podcast will be hosted on Banyan’s YouTube channel and the company’s website.
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