Supply Chain Automation Trends in 2021 | Supply Chain Trends 2021

There has been a continuous evolution in the field of Supply Chain in the last decade. The digital transformation is rapid. Moreover, the situation due to the COVID-19 has further accelerated the process. 

The pandemic has shown clear disadvantages of almost complete dependence on only one supplier for certain categories of products and raw materials. Companies were not prepared for such challenges, which led to supply delays due to production closures. At the same time, the demand for some categories of goods fell sharply, while for others it unexpectedly increased. The latter include antiseptics, cleaning products, and toilet paper. Thus, the already completely unstable supply chain was broken by extremely unpredictable demand. The lack of complete and up-to-date data has knocked off the demand model. Including those that worked on the basis of artificial intelligence and machine learning. 

In order to deal with these tense conditions, the companies are taking the following steps: 

1. Machines replacing manpower.
   The companies are involving robots for ease. Driverless vehicles and drones to deliver goods are used. This is giving executives a point to reduce their manpower and increase efficiency through modern technology. 

2. The smart warehouses:
   Recently, the term “smart warehouse” has been increasingly used in the markets of logistics services and retail. Many professional logisticians agree that now this is one of the best ways to simplify, speed up, and make more efficient any business operations related to the warehouse and logistics of enterprises. 
   
   Only a few companies - leaders in their market segments - can boast of such warehouse automation. The well-known companies have automated almost all basic warehouse operations, from automatic storage and order picking to automatic replenishment of assembly guns. 
   
   But nevertheless, due to their high cost, only a few have so far followed the path of fully automated warehouses. Even the largest retailers are limited to partial automation. For example, robotic lines are used in warehouses. Their use significantly reduces personnel labor costs, increases the accuracy of order picking, and, accordingly, reduces costs. 
   

3. The companies keep the suppliers diversified:
   The companies need alternative suppliers around the world. They also look for new approaches in production. They want to reduce the number of essential parts In the mechanism and find a replacement.  
   

4. The companies’ focus on flexibility:
   The companies are trying to get rid of the unnecessary processes. They bring automated processes for their operation. They give more importance to the exchange of information with the partners to track their order status in real-time. This approach allows supply chain participants to track the timing and quality of order execution in real-time, collect feedback from customers upon delivery, and improve their service. For this purpose, the role of freight forwarders is very crucial as they reduce the burden from shippers and handle most of their processes. For example, in the UAE most of the shippers prefer Dubai freight forwarders to handle the shipment for them. This increases their flexibility.
   

5. Technology in Action:
   Companies are actively moving to cloud solutions because they like the basic idea of ​​SaaS, in which the customer pays only for the services they use. They are also introducing new technologies for notification: in case of any delays at suppliers, the system informs customers and searches for additional suppliers. 
   

Many companies rely upon Software as a Service known as SaaS. Research agency J`son & Partners claims that almost all transnational holdings in the world are already using SaaS in their business processes. 

Although the pandemic has accelerated the development of the supply chain, this transformation began well before 2020 due to many factors: 

High customer Expectations
Internet giants like Amazon and Uber have significantly raised the bar in customer service. Many types of online store delivery (in-store pickup, home delivery, etc.) require good coordination between retailers, distributors, and manufacturers. The entire supply chain is following the growing demands of customers and increasing the focus on digital opportunities. 

Technology Trends:
Cloud computing, data modeling, and analytics capabilities facilitate increased coordination between partners in the supply chain. Developers of IT solutions are striving to improve their systems: add order tracking, set up alerts in case of supply disruptions, expand interaction with partners and increase transparency in the supply chain. 

All of this can be achieved through the openness of partners who are ready to share data, and the support of an advanced system that will process data, find patterns and offer all the necessary summaries for decision making. 

Of course, the use of sensors, microprocessors,

and wireless connections in warehouses and transportation are not new, and product labeling with barcodes and RFID tags has been around for years. We can say that logistics companies have become one of the pioneers of the Industrial Internet of Things, putting at their service a wide range of equipment from hand-held packaging scanners to sensors that monitor the movement of equipment. But all this is just the tip of the iceberg compared to the potential of IoT in modern warehouses.