In 2024 the supply chain landscape is poised for a dynamic transformation driven by rapid advancements in digital technology. The article from KPMG highlights the essential need for organizations to embrace these innovations to build more efficient, transparent, and resilient supply chains. Common themes revolve around integrating advanced technologies such as generative AI, automation, IoT, and blockchain to revolutionize supply chain processes.
Generative AI in Operations
Generative AI (GenAI) has been identified as a game-changer for supply chain management, logistics, and procurement. By processing extensive data sets and analyzing intricate variables, it facilitates compliance, enhances manufacturing workflows, and improves virtual logistics. Strategic AI implementation is critical. Rather than scattered efforts, businesses need to focus on rethinking core processes to leverage GenAI effectively.
AI-Enabled No-Touch/Low-Touch Planning
The rising pressure on supply chain planning necessitates adopting AI-enabled tools for Sales and Operational Planning (S&OP) and Integrated Business Planning (IBP). These tools automate manual tasks and perform scenario analyses to predict outcomes and identify anomalies, thus enhancing decision-making capabilities. They enable companies to stay ahead by predicting market trends and managing resources more efficiently.
Critical Role of Data
Data is central to the success of digital supply chains. Despite this, issues such as data silos, fragmentation, and quality concerns persist. To address these, organizations must adopt a use-case-driven approach to gradually enhance data quality, ensuring it is available, consistent, and reliable. Viewing data management as an ongoing journey rather than a one-time effort will be vital for achieving long-term success.
Transparency and Visibility Beyond Tier 1 and 2
Effective risk mitigation and regulatory compliance require visibility across multiple tiers of the supply chain. Technologies like control towers and digital twins enhance this visibility, uncovering relationships, and tracking performance deep within the supply chain. By providing deeper insights, these technologies support better decision-making and foster resilience in the face of disruptions.
Low-Code Platforms
Low-code platforms offer a unique opportunity for transforming supply chain operations by enabling rapid development and integration across multiple systems. They facilitate automation and the connection of otherwise disconnected systems, allowing business users to quickly develop new capabilities without needing extensive technical expertise. This accelerates innovation and helps businesses stay agile in a competitive environment.
ESG and Scope 3 Emissions
Tracking and reporting Scope 3 emissions, which include emissions across the entire value chain, is becoming increasingly important. Establishing a solid baseline for these emissions is challenging but essential. It requires complex data collection from suppliers. Organizations are encouraged to engage suppliers, segment them based on business criticality, and leverage technology solutions to capture and manage carbon emissions data effectively.
Electric Vehicles, Transport, and Logistics
The logistics sector is rapidly advancing toward automation and electrification as part of broader sustainability goals. The adoption of electric vehicles (EVs) for transport and delivery networks plays a crucial role in reducing carbon footprints. Evaluating fleet compositions and leveraging IoT data will aid companies in transitioning to more sustainable logistics practices, enhancing both efficiency and environmental responsibility.
Overarching Trends
Technological integration is pivotal in creating agile and efficient supply chains. A persistent focus on data quality and management is necessary for informed decision-making. Enhanced visibility across the supply chain tiers helps in risk mitigation and compliance. There’s increasing emphasis on ESG goals, particularly reducing Scope 3 emissions. Lastly, adopting low-code solutions to modernize legacy systems and connect fragmented processes offers agility.
Conclusion
In 2024, the supply chain landscape is primed for significant transformation, spurred by the rapid progression of digital technologies. According to an article from KPMG, organizations must adopt these innovations to forge supply chains that are not only more efficient but also transparent and resilient. Key themes circulating in this discourse include the integration of advanced technologies such as generative AI, automation, IoT (Internet of Things), and blockchain. These technologies are set to revolutionize supply chain processes in profound ways.Generative AI, for instance, holds the potential to drastically enhance predictive analytics, enabling better forecasting and decision-making. Automation can streamline operations, reducing human error and speeding up workflows. IoT devices improve real-time tracking and data collection, fostering transparency across various supply chain segments. Blockchain technology ensures secure, immutable records, which enhances trust and accountability. Thus, the future of supply chains hinges on the strategic implementation of these cutting-edge technologies to navigate the complexities of global supply dynamics effectively.
