Production and distribution along the supply chain are conditioned by digital technologies and related data. The goal is to extract information of strategic value: that’s why we talk about smart logistics.
The importance of defining an appropriate supply chain strategy is an increasingly evident trend, which has accelerated in the years of the pandemic. It is no coincidence that Deloitte prefers to talk about value webs, value networks, rather than supply chain, that is chains. Much more complex structures than we imagined only a few years ago: once again the pandemic brought new challenges on the ground. In fact, this business area is increasingly entrusted with the value of the enterprise, the ability to be sustainable in all respects, from the economic to the environmental one, today increasingly important, for consumers and for the general evolution of the system of governmental costs and incentives.
The dynamics in place
The Commission has also proposed that the Commission should take the necessary measures to ensure that the Community’s financial resources are fully compatible with the internal market.
The digital acceleration impressed by pandemic restrictions has put in place a completely different view of everyday life, so also of producing, communicating, shopping and recycling.
The industry knows how important it is to be able to count on a reliable and certified supply chain, which guarantees the quality of the products and their ethics, and retailers have already been accounting for the costs of deliveries for the last mile for a few years. Two extreme examples that show all the criticalities in the planning of the supply chain, that moreover must juggle in a world in rapid evolution.
Sudden weather events, accidents like that of the container carrier that in March this year blocked the traffic of the Suez Canal, sudden changes in demand, problems of supplying raw materials and need to find alternatives: all this information has a big impact
Mission is the agility of the chain
It is the supply chain that puts the greatest stress on companies in the aspect of flexibility and adaptability, in a word, agility. This complexity can no longer be managed only with traditional tools and the experience of a professional.
The professional, who remains the indispensable domain of strategy, must be equipped with technologies capable of controlling complexity and making it readable and interpretable. In short, it can transform a huge amount of data into a decision tool. Data that are constantly changing, come from different sources, both within the company and outside, such as weather forecasts or geopolitical changes, and are crucial to determining the ability of a company to be on the market.
It is not just an economic issue, but it could be said that the economic advantage is an obvious consequence of the choice to better respond to customers’ needs, to serve them with better and more sustainable products, more quickly, at lower costs.
It is called smart logistics and the technologies involved are the IoT, blockchain and artificial intelligence.
Each phase of the supply chain can benefit from the proper use of these technologies, but the most important advantage is to equip your company with the ability to react immediately, effectively, to the unexpected, and transform it into opportunities.
To learn more about these topics, you can download the White Paper for free:
IoT, Blockchain and Artificial Intelligence: the era of Smart Logistics begins