The future of supply chains

Wednesday, February 20, 2019

Nowadays it is considered “normal” the fact that humans work hand in hand with robots to make logistics processes more efficient in companies; but if this had been said in the 80’s nobody would have believed, and not only that, also the advantage of having GPS in the transport and being able to track in real time the place where the merchandise is something that nobody imagined, and now the possibility of operating without these implementations is not even considered.

Technological innovations revolutionize the supply chains day by day, before the changes took years, now in a matter of months there are new modalities of each innovation making companies and people live in constant change in order to adapt themselves to the needs of the market.

Supply chains today can be completely different from what they will be tomorrow and the business opportunities will always be at the hand of the company that is at the forefront. This practice rewards progressive thinking, supply chain management teams and the warehouse that accept the change that will revolutionize work flows many times between now and retirement.

This approach is considered a “holistic approach” and must be adopted throughout the supply chain. The people who act alone cannot affect the changes of the whole company for the better,  it requires an organizational change, as a team, all towards the same objective

What happens when companies do not adapt to change? Well what happened to Kodak happens, you become obsolete and the same market is excluding you, this company has seen its stock prices fall more than 90% in just four years.

The structure of supply and demand is changing, and the supply chains together with it. Manufacturing on demand, shipping and even custom creations are the last frontier to impress demanding customers. Speed ​​and accuracy are more important than ever. Not only do they want an order confirmation in their email, they also want a notification of insertion of a dedicated application on their smartphone, a clickable tracking code that tells them precisely when an item should arrive. Companies now have to worry about the entire product journey, not to mention reverse logistics to keep the customer happy.

In the warehouses the work is also changing, instead of moving pallets in and out the hardest physical work is being transferred to the robots. This minimizes much of the risk of and frees the associates to perform specialized jobs and more value-added functions. The supply chain system as a whole benefits the skilled labor of non-mechanical members of the team and vice versa.

Willing to accept change is the first step, implementing it is the key to staying afloat; either in the processes in your warehouse, being an omni channel company, with new modalities in the supply chains in general but always innovating, always moving forward. At DICEX we have a consulting department that gladly supports and guides clients and suppliers in this matter so that the success of their business remains.