July 10, 2019
6 Trends Shaping Supply Chain Management According to Dr. Madhav Durbha
Disruptor Daily recently interviewed a panel of leading experts on emerging trends and technologies in the context of supply chain management and transportation. LLamasoft’s Group Vice President of Industry Strategy, Dr.Madhav Durbha, took part to share his views. Read on for his views and links to series of articles covering the views of these experts:
“As tradewars and tariff uncertainties continue, nearshoring, or transferring business to a nearby country, will take hold– opening up new opportunities in reducing “just in case” inventories through postponement strategies, reduced lead times, acceleration of automation, and more. In addition, we’ll see increased efforts in sustainability by reducing single use plastic and packaging.
There will be more surprising partnerships as retailers strive to better utilize their floor space and increase traffic, like Kohl’s now accepting Amazon returns. As labor shortages continue in the US trucking industry, carriers–especially smaller ones– will be increasingly exposed to any slowing down of the economy.”
See more: What Trends Are Shaping Supply Chain Management In 2019? 13 Experts Share Their Insights
“Humans and machines will need to work together and raise the bar of productivity and efficiency. This requires higher levels of cognitive automation, powered by algorithms, to enable unprecedented visibility and speed of decisioning to humans at all levels of supply chain– and warehouses and retail stores will be at the forefront of this innovation.
In addition, innovations in last mile delivery and additive manufacturing will result in the hyper personalization of products and offers, and delivery models will take hold. The ability to harness the power of increasingly available data will set the supply chain winners apart from the losers.”
See more: What Is The Future Of Supply Chain Management? 17 Experts Share Their Insights
“Innovative digital decisioning platforms powered by cloud computing, increasingly sophisticated algorithms and hyper-personalized user experience will deliver unprecedented visibility and speed of decisioning. Such platforms will allow for business users with no coding experience to build “microapps’ at enterprise scale and with consumer grade ease. Rather than ripping and replacing existing systems, these platforms will help drive significant innovation and differentiation around existing infrastructure– and the “microapps” will fill key gaps in existing portfolio of systems, thus enabling interconnected decisioning at the speed of business.”
See more: Which Technology Will Most Impact The Future Of Supply Chain Management? 11 Experts Share Their Insights
“The driver shortage will continue into the foreseeable future– and is projected to hit a shortage of 160,000 drivers in the US alone by 2027. This, in addition to increasing regulations like the Electronic Logging Device mandate that logs driver activity and Hours-of-Service restrictions, will continue to constrain transportation capacity. As a result, the adoption of relay trucking is a trend to watch for helping drivers return home more frequently.
In addition, ocean carrier consolidation will continue to pressure shippers in finding capacity, venture money will continue backing last mile delivery companies and network effects will take hold, resulting in regional duopolies.”
See more: What Trends Are Shaping Transportation in 2019? 16 Experts Share Their Insights
“The future will be about smarter, connected vehicles that will bring increased automation, driving functions and safety. Today, innovative models such as “micro fulfillment centers” collocated with traditional retails stores are showing promise for omnichannel fulfillment and same day delivery– and as more models emerge, this last mile delivery will be increasingly relevant.
In addition, advances in analytics provide unprecedented visibility into the geolocation of fleets and expected times of arrival based on weather, traffic patterns, and other factors. As the electrification of fleets continues, we will see more infrastructure investments into charging stations.”
See more: What’s The Future Of Transportation? 16 Experts Share Their Insights
“As omnichannel shipments increase in volume and stops, and the Uberization of trucking continues, supply chain design will hold a key impact– and routes need to be more dynamically optimized in light of multiple pickups and drop-offs. The placement of production and warehouse facilities and sourcing strategies will have significant implications on both shipping costs and service levers– and Cost to Serve based optimization, or trading off transportation costs against other supply chain costs with the goal of meeting overall business objectives, will take hold.”
See more: Which Technology Will Most Impact The Future of Transportation? 15 Experts Share Their Insights