Supply Chain Optimization (SCO) refers to any method that enables companies to reduce costs in distribution while maintaining a standard of quality in production. SCO can be applied to any industry selling goods. The goal of SCO is to eliminate unnecessary steps and processes, thereby reducing time and cost. For example, if a restaurant were to grow its own tomatoes, it could improve the time for service. Without having to wait for purchased plants from outside vendors, there is a reduction in residual expenditures of one critical aspect of an enterprise’s supply chain. Using technology is the most efficient way in modern times to simplify one’s supply chain.
Transportation Management Systems
Logistics is the science of moving things from one place to another. There are many different types of Freight Shipping, including air freight, sea freight, rail freight, trucking, and courier services. Each type of logistics provides unique advantages based on factors such as price, speed, reliability, and security. Transportation management system software enables the function of these logistics for a company, being a one-stop shop for route planning, order management, cargo tracking, and accounting settlement. By improving the transparency of the transportation link in the supply chain, management experiences more accuracy in service and will be rewarded financially.
3D Printing
The latest advancements in additive manufacturing, or 3D printing, are creating more opportunities for streamlining the procurement link in the supply chain. Computer-aided design (CAD) can be used to manufacture practically anything, from raw materials to finished products. One application, for instance, could be a trucking company that requires the frequent use of spare parts. With the appropriate printer, the drivers could feel more secure and management doesn’t have to wait so long for wholesalers or retail vendors.
Blockchain
The technology of blockchain derives from the world of cryptocurrency. In an effort to make financial transactions more transparent, the blockchain creates immutable records of every sale and trade of a currency. These ledger inputs cannot be modified or destroyed once established. Furthermore, these block entries rely on a foundational chain of computers that certify each dealing. This system applies well to SCO in that reporting and auditing are alleviated significantly. Moreover, leadership will have more control over inventory, being able to easily identify where levels are for each good. The added visibility against a network of databases can create a unique value proposition, as well.
Machine Learning
Unsurprisingly, the advent of data collection tools has brought an inpouring of statistics to be analyzed. To ameliorate this issue, data scientists and developers are formulating algorithms and artificial learning tools to access and interpret data without explicit instructions. To coordinate the best use of warehousing data, for instance, a corporation could contract with an artificial intelligence brand, collaborating on a set of rules that will process trends and insights in real time. These insights are advantageous for the purposes of predictive analysis and attempting to see into the future.
Automation
Automation is an additional component that can help SCO. Robots and AI can be used to reduce human error in repetitive tasks like labeling or retrieving units. This makes the process more efficient, particularly when there is an appropriate collaboration between robots and humans, known as cobots. Robots are an institution in the manufacturing industry for some time now. They have been used to perform tasks such as welding, painting, assembly, and so on. However, they are now being deployed in warehouses as well. The example that most stands out is the case study of Amazon. The e-commerce giant with a global market position has automatons doing a fair share of work. Their duties could include inventory leveling, scheduling deliveries, or mapping routes.
From out-of-the-box software to customized hardware, leveraging technical solutions is productive for those who are optimizing a supply chain. Scientific process improvement is the ideal technique for increasing revenue and preventing unnecessary expenses. Whatever one’s commodity, consider the effects of modern solutions to modern problems in supply chain fulfillment.