8 Ways Technology Enhances Supply Chain Visibility

It's no secret that visibility in supply chain operations dictates the difference between successes and setbacks. With technology evolving at breakneck speeds, savvy 3PL service providers are racing to integrate cutting-edge tools that ensure nothing slips through the cracks.

To showcase what’s at play, stick with us and we’ll introduce you to a group of contemporary tech solutions that are shaking up the supply chain scene from top to bottom.

Revealing the RFID Revolution

According to a recent study by Persistence Market Research, the global RFID market size was valued at USD 13.27 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 9.1% to 2033. This underscores not only RFID’s current value but its potential to reshape supply chains further as adoption grows.

Here’s why this tech is relevant to supply chain visibility:

• Unprecedented Precision: Embedding tiny RFID tags on goods, 3PLs revolutionize logistics by granting companies the prowess to track items with pinpoint accuracy. This transformative technology doesn't just tell you that your product has left the warehouse; it can pinpoint its exact location in real-time.
• Minimized Mishaps: With RFID tags in play, the margin of error for lost shipments plummets. Automating inventory counts means the risk of human error is vastly reduced, leading to a more reliable supply chain from end to end.
• Data-Rich Insights: These tags are data powerhouses offering comprehensive historical insights into each product's journey - elements like temperature fluctuations, delays, and handling details are logged, painting a detailed portrait for analysis.

Reveling in Big Data's Big Impact

A recent survey by McKinsey found that just 53% of supply chain leaders believe that their ability to access and harness high-quality data is sufficient, meaning that there’s still a long way to go before movers and shakers in this niche are fully up to speed with what the right information and analytical tools can do.

However, big data stands to benefit supply chain visibility significantly, and here’s how:

• Streamlined Decision-Making: By aggregating vast quantities of data, companies can make more informed decisions. From predicting stock levels to optimizing delivery routes, big data analytics help turn complex information into actionable strategies.
• Enhanced Forecasting: Predictive analytics, a subset of big data, enables businesses to anticipate market trends and consumer demands with greater accuracy. This foresight allows for better inventory management and supply planning.
• Risk Mitigation: With real-time data analysis, potential disruptions in the supply chain become visible sooner, offering an opportunity for proactive countermeasures rather than reactive scrambling.

Incorporating AI-Driven Analytics

We’re seeing AI adoption ramp up in every arena, and the supply chain is no different in this regard - with even specific niche areas receiving the rapid roll-out of intelligent machine learning tech, as outlined in an EY report which showed that 62% of sustainability tracking activities are already being handled through smart automation. This trend is also evident among value added resellers who are leveraging AI to offer enhanced, customized services to their clients.

The perks of AI in a visibility context are many and varied, factoring in the following:

• Adaptive Learning: AI isn’t static. It learns as it goes, continuously improving its analysis and recommendations based on new data. For supply chains, this means ever-enhancing efficiency as the system gets smarter with every shipment.
• Predictive Problem-Solving: Artificial intelligence can foresee bottlenecks before they occur by sifting through layers of data for patterns that spell trouble. This provides businesses the upper hand in mitigating potential issues before they disrupt operations.
• Personalized Performance: AI doesn't just generalize; it personalizes. Algorithms tailor suggestions to fit unique business models and objectives, optimizing the supply chain to serve specific customer needs and market dynamics.

Soaring Higher with Cloud Computing

In terms of ubiquity, it’s hard to top cloud computing in the tech space, as it’s not only used for elements like data storage and backup, but also running mission-critical apps, which is something that 52% of businesses now do, according to Loftware.

The fact that organizations of all sizes are willing to entrust the running of lynchpin software services to remotely hosted, third party infrastructures is telling, and for supply chain visibility it has quite a few specific upsides:

• Seamless Integration: Cloud platforms tie together the disparate elements of the supply chain. Warehouse management, transportation logistics, and customer service systems - previously siloed - can now communicate effortlessly, providing a cohesive operational picture.
• Infinite Scalability: As businesses grow, their data grows with them. Cloud computing offers scalable solutions that adapt to increasing demands without the need for significant infrastructure investment or overhaul.
• Disaster Recovery: The cloud ensures that data isn't just accessible but also secure. Should physical systems fail, information remains intact and ready to deploy from the digital ether, minimizing downtime and loss.

Integrating Mobile Tech for On-the-Go Advantages

Everyone who has a smartphone in their pocket should know that mobile tech is a must-have for modern life. And in terms of supply chain visibility, there are clear case studies that solidify its relevance in this sphere - such as in the instance of pharma giant Pfizer developing a specific mobile app called TrackiT which helps connect all stakeholders in its multifaceted, global supply chain operations in a cohesive way.

Here are a few benefits that any business can glean:

• Real-Time Communication: Mobile technology empowers teams with instant access to critical updates. Whether on the warehouse floor or in the field, stakeholders stay informed and ready to act, shrinking response times to mere moments.
• Access Anywhere: The ability to check inventories, update delivery statuses, and approve purchase orders from any location translates into heightened operational agility for businesses - a critical edge in today's fast-paced environment.
• Enhanced Data Capture: Mobile devices streamline data collection at every stage of the supply chain. From scanning barcodes to confirming deliveries with a signature captured on a screen, this tech ensures that information is as mobile as the products it tracks.

Connecting the Dots via the Internet of Things (IoT)

Figures from Markets suggest that the worldwide IoT market is forecasted to reach $650 billion in 2026, with double-digit annual growth on the cards as adoption accelerates in all sorts of industries.

This investment reflects the crucial role IoT plays in hyper-connecting supply chain elements, paving the way for an era of unstoppable efficiency, and bringing with it a number of positives for supply chain visibility, such as:

• Networked Intelligence: IoT devices collect and share data across the supply chain network, from sensors on shipping containers to monitors in trucks, ensuring a tightly woven web of information that flags irregularities in real-time.
• Precision Maintenance: Sensors enable predictive maintenance by detecting wear and tear before it leads to breakdowns. This foresight minimizes downtime and extends the lifespan of critical equipment.
• Enhanced Customer Experience: IoT technology provides customers with up-to-the-minute information about their orders, fostering trust and satisfaction through transparency.

Bigging Up Blockchain's Breakthrough

Integrating blockchain technology promises substantial efficiency gains; in a specific case where logistics firm DHL and automotive wheel brand Maxion implemented it, a 30% uptick in operational performance was recorded.

This bolsters blockchain's potential to be not just transformative but economically advantageous for supply chain operations, as well as providing a few other selling points:

• Trust Through Transparency: Blockchain serves as an unalterable ledger, providing a single source of truth for all transactions within the supply chain. This transparency builds trust among suppliers, vendors, and customers alike.
• Simplified Settlements: Smart contracts on blockchain automate and expedite transactions by executing predefined conditions, slashing time and complexity from traditional settlement processes.
• Counterfeit Combatant: With blockchain’s traceability features, verifying the authenticity of products becomes straightforward, effectively combating counterfeiting and ensuring compliance with standards. This is why it’s also being applied to areas like instant messaging and a wealth of other contexts.

Accommodating Augmented Reality's New Perspective on Supply Chain Visibility

The rise of AR in the supply chain has been steep - with data from Statista showing that adoption rates went from 8% in 2017 to 34% in 2019, and further growth occurring in the intervening years as well.

The reasons behind this are many and varied, and its applications in terms of supply chain visibility cover the following:

• Interactive Training: AR creates immersive training environments for supply chain personnel, enhancing their understanding of complex systems and procedures through interactive simulations that stick. If you want to foster continuous learning among your workforce, then this tech needs to be on your watch list.
• Enhanced Picking Processes: Warehouse pickers equipped with AR glasses can locate items faster and more accurately, thanks to visual overlays that guide them through the inventory maze.
• Maintenance Made Easy: By overlaying digital schematics onto physical machinery, AR helps technicians diagnose issues quickly and perform maintenance or repairs with guided precision.

Conclusion

These technological steps in supply chain visibility enhancement are some of the biggest in terms of both their impact and their broader applications beyond this use case. Not only are things like big data and AI having a revolutionary role in reshaping how goods are distributed globally, but they’re also revamping commercial activities of all kinds outside of the supply chain as well.

All of this means that even if your business is not directly linked to supply chain management, it should still be taking note of the tech discussed here, and seeking to embrace it wherever possible to stay agile and relevant as the world changes around it.