Top Supply Chain Technologies: A Pazago Guide

In the race to stay competitive, you know every advantage counts. Technology isn’t just a nice-to-have any more, but the driving force behind smarter, faster, and more efficient supply chain management. 

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Around 61% of supply chain organisations recognise technology as a competitive edge, and 20% already invest in new technologies to fuel future growth. 

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As a business owner, you can't afford to fall behind on new technology in supply chain management. 

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In this guide, you'll discover how technology in supply chain management can transform your operations, streamline processes, and help you stay ahead in an ever-evolving market.

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Read on. 

What is Supply Chain Management, and Why Use Technology? 

You already know that supply chain management (SCM) is the lifeblood of your operation. It’s not just about moving products from point A to point B but managing everything—from sourcing raw materials to delivering the final product to your customer’s door. 

But you also know that running a supply chain manually in today's market is simply inefficient. That's where technology in supply chain management becomes indispensable.

Here are the top five ways technology is transforming supply chain management. 

• Real-Time Tracking: Gain instant visibility into every stage of your supply chain to reduce delays.
  
  
• Predictive Analytics: Use AI to forecast demand, minimising overstock and shortages accurately.
  
  
• Automation: Streamline tasks like order processing and inventory management, boosting efficiency.
  
  
• Transparency: Ensure secure, traceable transactions and product origin tracking.
  
  
• Enhanced Communication: Improve supplier and customer coordination through integrated digital platforms.

Also Read: What is Supply Chain Management and Its Importance?

With that in mind, let's explore the top technologies driving these changes and giving your business a competitive edge. 

Top 10 Technology in Supply Chain Management

As a business owner, you know that maintaining a well-oiled supply chain is crucial for staying competitive. Yet, even with all the advancements available, only 6% of companies have achieved full visibility in their supply chains. 

That leaves plenty of room for you to gain an edge. Technology in supply chain management isn’t just about keeping up. It’s about leading the charge. With the right tools, you can streamline processes, boost transparency, and take control of every link in the chain.

Here are the top 10 technologies that can elevate your supply chain to the next level.

1. Artificial Intelligence (AI)

AI is transforming supply chains by automating processes, enhancing decision-making, and improving demand forecasting. It provides real-time insights that help optimise every stage of the supply chain.

Problems AI Addresses:

• Unpredictable demand and inaccurate forecasting
• Inefficient inventory management
• Delays in supply chain decisions due to manual processes

Solutions AI Provides:

• Predictive analytics for accurate demand forecasting
• Automated inventory management to reduce overstock or shortages
• Real-time data analysis for faster, informed decision-making

Amazon is a great example of AI in action. They use AI-driven predictive analytics to forecast demand and manage their massive inventory across global warehouses. 

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This technology helps them optimise stock levels, reduce delivery times, and improve customer satisfaction by ensuring that products are available when and where needed.

2. Internet of Things (IoT)

IoT connects physical devices throughout the supply chain, providing real-time data on everything from inventory levels to the location and condition of goods. It enhances transparency, efficiency, and responsiveness.

Problems IoT Addresses:

• Limited real-time visibility into shipments and inventory
• Inconsistent product quality and tracking issues
• Delays caused by inefficient communication between systems

Solutions IoT Provides:

• Real-time tracking of shipments and assets, improving visibility
• Automated monitoring of product conditions (e.g., temperature, humidity) to ensure quality
• Seamless communication between systems to optimise logistics and reduce delays

DHL employs IoT technology to track the location and condition of its shipments in real-time. Sensors monitor factors like temperature and humidity, ensuring that sensitive goods like pharmaceuticals are transported optimally.

3. Blockchain

Blockchain technology in supply chain management is a decentralised digital ledger that records transactions across multiple computers, ensuring transparency and security. It operates without a central authority, with each block in the chain containing a cryptographic hash of the previous block. This technology is used for secure data sharing, particularly in financial and digital asset transactions.

Problems Blockchain Addresses:

• Lack of transparency and accountability in the supply chain
• Difficulty in tracing product origins and verifying authenticity
• Risk of fraud, counterfeiting, and security breaches

Solutions Blockchain Provides:

• Immutable, transparent records of every transaction in the supply chain
• Enhanced traceability of products, ensuring authenticity and compliance
• Secure, tamper-proof data that prevents fraud and improves trust among stakeholders

Walmart uses blockchain to track its food supply chain, ensuring transparency and safety. With blockchain, Walmart can trace the origin of products like fresh produce in seconds, reducing the risk of contamination and enhancing food safety.

4. Robotics and Automation

Robotics refers to physical robots designed to execute specific actions, while automation uses technology to control processes and systems. Together, they enhance precision, consistency, and efficiency in various industries.

Problems Robotics and Automation Address:

• Labor-intensive, error-prone manual tasks
• Inefficient warehouse management and slow order fulfillment
• Rising labour costs and shortages

Solutions Robotics and Automation Provide:

• Automated picking, packing, and sorting to reduce errors and improve speed
• Increased productivity in warehouses and distribution centres
• Lower operational costs by reducing reliance on manual labour

Ocado uses robotics and automation in its grocery fulfilment centres. Its advanced robotic systems pick and pack orders quickly and accurately, allowing for faster delivery and reducing operational costs. This showcases the power of new technology in supply chain management. 

5. Cloud Computing

Cloud computing technology in supply chain management involves using internet-based servers to store, process, and manage supply chain data. It enables real-time access to inventory, shipping, and supplier coordination information. This approach streamlines the flow of data across different stages of the supply chain

Problems Cloud Computing Addresses:

• Lack of real-time collaboration and communication across the supply chain
• Difficulty in managing large amounts of data securely
• Inability to scale operations quickly as the business grows

Solutions Cloud Computing Provides:

• Seamless, real-time data sharing and collaboration across global supply chain networks
• Secure storage and easy access to large volumes of supply chain data
• Scalable infrastructure to support growing operational needs

Unilever integrates its global supply chain using cloud computing, enabling real-time collaboration between suppliers and partners. This enhances visibility and responsiveness, allowing Unilever to manage its supply chain more efficiently across different regions.

6. Big Data Analytics

Big data analytics technology in supply chain management harnesses vast amounts of data generated throughout the supply chain to derive actionable insights. By analysing patterns and trends, you can optimise operations, improve decision-making, and enhance customer satisfaction.

Problems Big Data Analytics Addresses:

• Difficulty in identifying trends and patterns from large datasets
• Inefficient inventory management and demand forecasting
• Slow response times to market changes and customer needs

Solutions Big Data Analytics Provides:

• Enhanced demand forecasting through analysis of historical data and market trends
• Improved inventory management by identifying optimal stock levels and turnover rates
• Faster decision-making with real-time insights into supply chain performance

Procter & Gamble (P&G) optimises its supply chain operations using big data analytics. By analysing consumer data and market trends, P&G enhances demand forecasting, reduces excess inventory, and ultimately delivers products more efficiently to meet customer needs.

7. 3D Printing

3D printing, also known as additive manufacturing, is transforming supply chain management by enabling on-demand production of parts and products. This technology allows businesses to create complex designs with minimal waste, reducing lead times and inventory costs.

Problems 3D Printing Addresses:

• High costs and long lead times associated with traditional manufacturing
• Excess inventory and storage costs for spare parts and products
• Inflexibility in product design and customisation

Solutions 3D Printing Provides:

• On-demand production that eliminates the need for large inventories
• Reduced production costs and time by printing parts as needed
• Enhanced design flexibility, allowing for rapid prototyping and customisation of products

General Electric (GE) uses 3D printing to manufacture complex engine components for its jet engines. This technology reduces production time and costs and allows GE to innovate designs that improve performance and efficiency. 

8. Digital Twins

Digital twins are virtual replicas of physical assets, processes, or systems, allowing businesses to simulate and analyse real-world conditions in real time. This innovative technology helps optimise operations, improve efficiency, and enhance decision-making in the supply chain.

Problems Digital Twins Address:

• Lack of real-time visibility into supply chain operations
• Difficulty in predicting potential disruptions or inefficiencies
• Ineffective testing of changes or improvements without real-world impact

Solutions Digital Twins Provide:

• Real-time monitoring and simulation of supply chain processes for enhanced visibility
• Predictive analytics to identify potential issues before they escalate
• Safe environments to test changes and improvements without affecting actual operations

Siemens employs digital twin technology to optimise its manufacturing processes and supply chains. By creating virtual models of their production systems, Siemens can analyse performance, predict maintenance needs, and implement improvements, highlighting the importance of technology in supply chain management for driving operational excellence.

9. Machine Learning

Machine learning (ML) is a subset of artificial intelligence that enables systems to learn from data and improve over time without explicit programming. In supply chain management, ML algorithms analyse vast amounts of data to identify patterns and make predictions, enhancing operational efficiency and decision-making.

Problems Machine Learning Addresses:

• Inefficient demand forecasting leads to stockouts or overstock
• Slow response times to changes in market conditions
• Difficulty in optimising logistics and supply chain processes

Solutions Machine Learning Provides:

• Enhanced demand forecasting through predictive analytics, leading to better inventory management
• Real-time insights that allow for quick adjustments to supply chain strategies
• Optimisation of logistics and route planning, reducing costs and improving delivery times

Nestlé utilises machine learning to optimise its supply chain operations by analysing consumer data and market trends. This technology enables Nestlé to improve demand forecasting accuracy and streamline logistics, demonstrating the critical role of technology in supply chain management for achieving operational excellence.

10. Autonomous Vehicles

Autonomous vehicles (AVs) are self-driving vehicles equipped with advanced sensors and AI technology to steer without human intervention. In supply chain management, AVs enhance logistics and transportation efficiency, reducing costs and improving delivery times.

Problems Autonomous Vehicles Address:

• Rising labour costs and driver shortages
• Inefficiencies in last-mile delivery and transportation logistics
• Safety concerns and human error in driving operations

Solutions Autonomous Vehicles Provide:

• Reduced operational costs by eliminating the need for human drivers
• Efficiency in logistics and last-mile delivery through automated routes
• Increased safety with advanced steering through systems that minimise human error

Waymo is a leader in autonomous vehicle technology, providing self-driving transportation solutions. Their vehicles are used in logistics and delivery services, demonstrating how autonomous technology can revolutionise supply chain management by improving efficiency and reducing costs.

Also Read: Operations and Supply Chain Management. 

Challenges in Adopting New Technologies

Only 16% of companies report a high level of automation in their decision-making processes related to planning. However, this figure is projected to soar to 65% by 2025. 

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You understand the urgency of adapting and innovating. However, adopting new technologies can be daunting, and several challenges may arise. 

Check out the common challenges you might face in implementing a new technology in supply chain management and how you can effectively address them.

1. Resistance to Change

Employees may hesitate to adopt a new supply chain technology due to their comfort with traditional processes.

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Solution: Implement effective change management strategies, including comprehensive training programs and clear communication about the new technology's benefits, to create a positive attitude toward change.

2. Integration with Existing Systems

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Struggles with integrating a new supply chain technology into legacy systems can lead to data silos and increased operational complexity.

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Solution: Select technology solutions compatible with existing infrastructure and develop a clear integration strategy to facilitate seamless system connections.

3. Data Security Concerns

The digitisation of supply chains raises data security risks, making organisations vulnerable to breaches.

Solution: Invest in strong cybersecurity measures and ensure compliance with relevant regulations to protect sensitive information and build customer trust.

4. Skill Gaps

Rapid technological advancements can create skill gaps within the workforce.

Solution: Have ongoing training and development programs to empower your team with the necessary skills to use new systems effectively.

5. Managing Data Overload

The influx of data from a new technology in supply chain management can overwhelm organisations and hinder decision-making.

Solution: Develop clear data management strategies to ensure data is organised, analysed, and transformed into actionable insights for informed decision-making.

Best Practices for Using Technology in Supply Chain Management

With the right tools, you can streamline operations, enhance efficiency, and make informed decisions. But to truly maximise the benefits of technology in supply chain management, it's essential to follow best practices that ensure successful implementation and usage. 

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Here are some key strategies to consider. 

• Assess Your Needs: Conduct a thorough assessment of supply chain processes to identify specific pain points and areas for improvement.
  
  
• Invest in Training: Provide ongoing education and resources to effectively empower employees to utilise new technologies.
  
  
• Allow Collaboration: Utilise collaborative tools that enable seamless communication between teams, suppliers, and partners.
  
  
• Use Data Analytics: Implement data analytics tools to gain insights from supply chain data for optimising inventory and improving decision-making.
  
  
• Prioritise Cybersecurity: Invest in robust cybersecurity measures to protect sensitive information and ensure compliance with data protection regulations.
  
  
• Choose Scalable Solutions: Opt for technologies that can scale with your business growth and adapt to changing market conditions.
  
  
• Monitor Performance Continuously: Establish key performance indicators (KPIs) to track the effectiveness of implemented technologies and identify improvement areas.
  
  
• Integrate Systems: Ensure new technologies can seamlessly integrate with existing systems to enhance data flow and reduce operational silos.
  
  
• Gather Feedback: Encourage feedback from employees and stakeholders to refine processes and ensure the technology aligns with operational needs.

Also Read: Top Supply Chain Management Tools for Modern Logistics. 

Why Choose Pazago for Your Supply Chain Management Needs?

Pazago provides a comprehensive solution for businesses aiming to optimise their import-export trade processes using technology in supply chain management. The fully managed platform empowers you to reduce costs and streamline operations significantly.

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Read on to learn why Pazago is the ideal choice for improving your supply chain management.  

• Cost Reduction and Efficiency: You can achieve up to 20% cost savings and reduce turnaround times by 50%, allowing you to reinvest in other areas of your business.
  
  
• Centralised Trade Management: Digitally manage your entire trade journey from procurement to fulfilment with real-time tracking and simplified workflows.
  
  
• Enhanced Communication: Use Pazago’s Inbox to streamline trade communications, bringing all key parties into one conversation for clear and efficient discussions.
  
  
• Proactive Risk Management: Identify potential risks and bottlenecks, such as supplier delays, and address them proactively to ensure smooth operations.
  
  
• Effortless Document Handling: Create, manage, and collaborate on critical trade documents like quotations and invoices, all in one secure platform.
  
  
• Real-Time Cargo Tracking: You can monitor the real-time movement of goods and shipments with just the BL number, providing clarity and peace of mind.
  
  
• Global Scaling: Track shipments from over 180 shipping companies across 110+ countries without the hassle of switching websites.

Conclusion 

In conclusion, adopting technology in supply chain management is essential for enhancing efficiency, transparency, and competitiveness. By adopting tools like AI, IoT, and blockchain, businesses can streamline operations and address common challenges effectively. 

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With Pazago’s comprehensive platform, you can do just that. Don’t miss out on the opportunity to transform your operations. Get started with Pazago today and elevate your supply chain to the next level!

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