Steps to modernize and transform the supply chain management for the new world order

 Two years after the pandemic broke out, supply chain constraints are nothing new. Supply chain bottlenecks and inefficiencies have lasting, downstream consequences right from the shop floor to the top floor. From delayed delivery times to goods that never seem to stay in stock, it can feel like a lagging supply chain is a constant in the world we are operating in. As costumer  demand forecasting software continues to increase, with e-commerce gripping the buyers market, when this depends on traditional infrastructure and fixed driver and asset capacity, modernization is important to drive efficiencies. For the next few months to come, 5 key trends will drive this modernization.

1. Increased Investment In Technology 

Supply chain challenges need to be met with speed, efficiency and safety. Technology is being leveraged to meet these goals to the tune of $24.3 billion in venture funding. According to PitchBook, supply chain technology startups raised the multi-billion dollar figure in the first three quarters of 2021, a substantial increase from the $15.4 billion raised in all of 2020.

2. Shifting Consumer Expectations And Behaviors (B2B and B2C)

Today’s B2B and B2C consumers behave differently than pre-Covid. They expect a certain level of visibility into and control over the status of their packages and where they are delivered, the time of day the delivery occurs and more. They’re also tech-savvy, looking for quick, seamless purchasing options. These are the factors that drive e-commerce sales growth, which is expected to reach $1.06 trillion in 2022.

Understanding that the pandemic permanently altered consumer behavior is the first step in tailoring solutions to meet new demand. As we think about modernization, adapting to these expectations and behaviors will be critical.

3. Continued Emergence Of Strategic Partnerships In The Supply Chain

Industry partnerships help build a resilient supply chain ecosystem. And as evidenced by the investment figure for Supply Chain Planning Software startups, this year will see more third-party partnerships and integrations serving targeted supply chain segments. Partnerships can be a strategic way to reduce costs while improving customer service and functionality. Businesses that don’t have the expertise or bandwidth to support more innovative processes will look to partnerships and industry collaboration to keep products moving.

4. Greater Desire To Future-Proof Business Operations

The pandemic pushed risk management to the top of nearly every business agenda. According to findings from McKinsey, 95% of companies surveyed said they now have formal supply-chain risk-management processes. And 59% of companies said they had adopted new supply-chain risk management practices in 2021.

After living through the past two years, business leaders are re-evaluating operations, streamlining management and seeking out strategies that boost business resilience. For many organizations, future-proofing will mean automating processes and gathering data. Take trucking businesses, for example, which have huge carrier and payment operations. There’s an amazing opportunity to strengthen resources to support these businesses and provide data to digitize the back office, so there’s better visibility, management of cash flow and actionable insights.

5. Advancements In Transportation

According to the American Trucking Association, there may be a shortage of 160,000 truck drivers by 2030. This shortage, coupled with extraordinary demand, has put the trucking industry in a vulnerable and overwhelmed position. Boosting efficiencies for existing drivers is critical to keep pace with the economy’s growing demands. Beyond technology innovations that make their job more efficient, advancements in transportation like autonomous truck development will help solve supply chain pain points and modernize the industry.

Logistics planning software is a unified software that covers end to end needs of 3PL, Freight Forwarders and Network Service Providers. Today’s end consumer craves more immediate deliveries and a 24/7 supply chain, and many autonomous vehicle (AV) developers have taken note and started to test the technology with commercial fleets. Beyond keeping goods moving full-time, AVs can help boost safety and efficiency, as well as supplementing driver shortage needs that we anticipate in 2022 and beyond.