Five Ways Tech Is Changing Supply Chains

New technology has always changed the world, sometimes for better and other times for the worst. But over the past decade, things have ramped up considerably. From mobile to smart, connected devices and on to more advanced platforms like AI or machine learning it all has a monumental impact on the world at large.

Smart technologies, for instance, are changing the way we live, work, and play. They’re also changing the average enterprise and business.

Nothing has been more impact, however, than the supply chain. Tech is being used not just to improve and shape the future of the industry, but to changeup age-old processes entirely. As a result, this has introduced many new opportunities and businesses, from food prep companies like HelloFresh or Blue Apron to superfast product delivery from retailers like Amazon.

Here are five ways that modern technology is changing the supply chain.

1. Tech-Driven Transparency

Many supply chain concerns and issues lie at the feet of transparency. That is, improved transparency can have a lot of benefits in today’s world.

For starters, consumers want to know that the organizations they are doing business with are environmentally, socially and economically friendly. They want to know the origins of materials, how components were developed and what impact that had on the surrounding communities. It goes way beyond that, even.

In industries like food and beverage, the goods must be tracked throughout their entire journey. This is not just to improve oversight and efficiency; it’s also about public safety. When food is contaminated, everyone in the supply chain must step up to weed out the problematic goods. Suppliers must halt distribution, retailers must halt sales, manufacturers or providers must find the source and fix the problem. It requires a lot of complex logistics but also streamlined collaboration across all entities involved.

Technology — smart tech, especially — is helping to improve transparency across the board. RFID tags and geospatial data can be used to track goods from their source all the way to the customer, for example. Sensors can be used to collect data about how goods are being handled, allowing managers to see how it was stored, for how long, and whether or not other factors need to be considered — like a tear in product seals or cooling unit failure.

Blockchain will be responsible for even greater transparency, thanks to the rise of platforms like the Morpheus Network which offers a “full service global, automated, supply chain platform with an integrated cryptocurrency payment system.”

2. Highly-Efficient Autonomy or Automation

Automation has always been around in one form or another, but thanks to modern technology it’s been augmented and improved to unprecedented levels. AI platforms can power systems to keep them running at optimal conditions, but also to make minor adjustments, many of which improve efficiency and output even further. Machine learning and big data can be used to further improve that AI, as it learns to adjust and evolve over time.

Fully automated supply chains are a definite possibility with newer systems. Goods will soon be exchanging hands between parties without ever involving human labor. Combine smart automation systems and devices with driverless vehicles and you’re looking at an all-AI driven process.

This includes computerized shipping and tracking, which improves product and goods delivery to the consumer’s doorstep. Think Amazon’s Prime Air service which will see an endless swarm of UAVs or drones delivering local packages.

3. Big Data, Better Oversight

Logistics and supply chain duties require a great deal of information, most of which comes from performance tracking, real-time events, and customer behavior. In fact, according to the Council of Supply Chain Management Professionals, 98 percent of third-party logistics firms and 93 percent of shippers believe that data-driven decision making is vital to their supply chain activities.

Modern technology affords a much more robust and convenient stream of data, from a variety of sources. Logistics tech provides information about cargo weight, storage conditions, local weather patterns, traffic delays and transport times, and much more. Performance tools can be used to estimate the time for goods development cycles, outputs, packaging, and similar statistics.

All of this information is then utilized to build a more efficient chain. A cargo team can draw up optimized transport routes taking into account travel times and local traffic. Receivers can better plan their inventory and promotions based on incoming goods. It’s all connected, and big data makes it much simpler and more controlled.

It improves the average customer experience too, especially when the data is fed into a CRM or customer relationship management tool. It helps organize and utilize customer data to improve operations and output.

4. Wearables In the Warehouse

Amazon, as always, is a great example of this particular technology trend because they outfit their warehouse and inventory workers with unique wrist-worn devices. The wearables help workers track and locate items, as well as update customer order info. Obviously, it’s not the only company that serves as an example; MHI expects 70 percent of facilities to adopt wearable technology over the next five years.

Augmented reality tools — like Google Glass — can help relay digital information in the real-world to workers, like instantly counting how many boxes or items are in their view.

They can even be used to track and monitor worker health. Transport drivers, for instance, can carry a device that tracks their sleep and quality and lets them know when they need to rest. It seems silly on the outside, but when you consider how much that can save in accident and disaster costs it’s well worth the investment. The National Highway Traffic Safety Administration estimates that drowsy or tired driving is responsible for 72,000 crashes each year, resulting in 44,000 injuries and over 800 deaths. That sleep tracking wearable for drivers sure doesn’t sound menial anymore.

5. 3D Printing

Essentially, a phenomenon of its own, 3D printing is single-handedly changing the face of modern manufacturing. With a 3D printer, consumers can essentially create or make any small-sized object. Enterprise-level printers — of a much larger size, of course — can be used to speed up manufacturing and place it closer to the consumer. This eliminates a lot of the conventional supply chain requirements.

For instance, imagine a shoe printing company that prints their own shoes, in-store and either delivers them locally or sells them online. The entire operation could be handled by a single entity — the store or seller. It cuts out a lot of the added steps in a conventional supply chain, from sourcing to traditional manufacturing.

That doesn’t mean manufacturing will disappear entirely. The technology also gives a lot more power to them, as well. Suddenly, manufacturers can do things like print and sell parts, on demand. Or, ship highly-customized goods directly to the consumer.

The Future of Supply

In the end, it’s quite obvious that technology is changing the modern supply chain. From tech that’s increasing total transparency to something like 3D printing that is evolving modern manufacturing — pushing it closer to the consumer — the world of tomorrow is definitely going to look much different.

Bio: Nathan Sykes is the founder of Finding an Outlet, where he writes about the latest in technology and business news and advice.