The impact of Industry 4.0 has been driving manufacturing firms to rapidly leverage disruptive technologies like machine learning, predictive intelligence, automation, data analytics and IoT in their core supply chain and logistics processes. This, in turn, is driving new trends in the supply chain and logistics industry.
Below, we bring you the top six logistics trends that will transform the manufacturing industry in 2020:
Ensuring Micro-Level Tracking
As complexities in freight movement increases, the need to track shipments down to every delivery item will become a major need. IoT and GPS enabled devices empower manufacturers to track shipments in real-time, even in areas with poor connectivity. It’s especially useful for temperature tracking of refrigerated shipments or keeping a check on the condition of fragile goods in transit. These devices also help businesses track where a vehicle is at any given point of time, know whether it’s wasting time idling, if it’s taking unnecessary diversions, so on and so forth.
Building Proactive Supply Chain and Logistics Models
Traditionally supply chain and logistics models have been reactive. First, a problem occurs and then comes the resolution part. But now, owing to the alarming need to deliver on time, and shrink delivery cycles businesses are aiming to identify risks and exceptions even before they occur. Advanced logistics platform powered by ML and predictive intelligence technologies can be of immense help in building proactive supply chain and logistics processes.
ML and predictive intelligence technologies empower manufacturers to predetermine delays and risks in each route, making route planning extremely efficient. Predicting risks include avoiding locations that are prone to theft. By leveraging advanced logistics software, manufacturers can reduce the chances of theft by 57% and save millions of dollars.
Then there are anticipatory shipping technologies that use predictive analysis to dispatch shipments to a local warehouse even before the customers have placed their orders for the
products. By predicting what their customers are going to order next, the company can ensure the ready availability of stock and cut down on order fulfillment times.
Increasing Demand for On-Time Deliveries
On-time deliveries are integral to your profits and customer experience. According to research, 70% of manufacturers don’t have end-to-end visibility into their supply chain – which makes on-time deliveries a mammoth problem. In the world of manufacturing delivering on-time is critical. Even a few hours of delay in the arrival of goods and raw materials can trigger a chain reaction of inefficiency. If raw materials don’t arrive on time, it delays production, fritters away valuable manhours, delays go-to-market timelines, cause budget overruns, makes inventory planning problematic and adversely impacts customer loyalty. Hence, generating accurate ETAs is also equally important when it comes to meeting delivery timelines.
Reducing Dependency on Human Intervention
Automating the supply chain has several benefits for manufacturing businesses, such as reduced physical effort, increased productivity, greater levels of accuracy and reduced costs. Manufacturing businesses can automate their supply chain by investing in a modern logistics management solution that can be integrated with their ERP, WMS, TMS, and 3PL systems to automate data entries and eliminate human error. Such a solution also offers access to real-time freight data and smart reports that enables intelligent decision-making by comparing the performance of various logistics providers.
Deploying Blockchain in Logistics Operations
Blockchain-based solutions are entirely secure, enabling logistics managers to securely share data with manufacturers and other stakeholders involved in the process. A key advantage of using Blockchain is traceability. Every transaction that happens in a supply chain can be easily traced back to the person who was responsible. This also eliminates the chances of corruption.
Driving Delivery Transparency and Flexibility
As manufacturers have started delivering directly to customers, ensuring end-to-end transparency of delivery progress is critical. A modern logistics platform empowers manufacturers to generate real-time delivery updates to customers. These updates include notifications on delays, ETAs, changes in delivery timing and so on. Platforms like these also make deliveries flexible by allowing customers to change time according to their convenience.
It is an undeniable fact that the future of the manufacturing industry is closely linked to the performance of their supply chain and logistics operations. AtFarEye, we have enabled 150+ enterprises in 20+ countries to build transparent supply chains and improve their logistics operations while reducing costs. To know how FarEye can empower you to boost your supply chain and logistics operations sign up for a quick demo here.