Implement the Internet of Things-linked systems and devices
Internet of things (IoT)-based systems are essential to managing complex, omnichannel supply chains due to the worldwide nature of potential customers and shipments. These devices improve supply chain visibility by giving AI, machine learning, and predictive analytics the data they need to generate actionable insights.
Goods can be equipped with monitoring devices that allow CPG companies and retailers to track products throughout the supply chain. From manufacturing, storage, transportation, and final destination, the data generated from goods/containers will provide insight into purchasing and selling cycles, how frequently inventory should be restocked, and how much should be kept in stock.
Use big data and algorithms to identify inefficiencies
With IoT-enabled devices throughout the intelligent supply chain, companies can now collect thousands of data points that can be utilized to improve each step of the supply chain process. Using AI, data science, and predictive analytics, both retailers and manufacturers can quickly make improvements and identify inefficiencies that need to be addressed.
Predictive analytics and big data will empower companies with insights to reduce downtime, optimize workflows, and keep operations running efficiently. This information can also guide new optimization strategies extending beyond the supply chain onto the store or warehouse floor, field services, and even customer service.
Trust machine learning
Machine learning will self-optimize each step of the supply chain using the data and information generated from AI and predictive analytics. Beyond a massive increase in the scope and scale of data management, machine learning allows for novel features like visual pattern recognition and contextual intelligence that provide businesses with powerful new analytical tools. In turn, companies can use this advancement in data insight to help identify new efficiencies, and optimizations ultimately cutting costs and increasing revenue generation.
Automation is a vital component of enacting a truly intelligent supply chain as it is key in increasing overall speed – the first and most important step in improving the efficiency of the supply chain. This ensures that manufacturers receive the timely delivery of components and can stay on track to ship their own products. Retailers can better maintain inventory levels to ensure customer satisfaction for both in-store and online shoppers looking for BOPIS/BOPAC. Beyond optimizing fulfillment, automation can greatly improve the efficiency of other integral parts of the supply chain – such as sourcing, distribution, and procurement – for manufacturers, suppliers, and retail stores.
Author: Danish Mairaj, CISCOM, PMP