A report on the emerging technological

developments in the field of Supply and Value

Chain Management

Submitted by:

Srishti Singh (MFM/20/1063)

Under the supervision of

Dr. A. Sasirekha

Associate Professor
Department of Fashion Management Studies

Submitted to:

National Institute of Fashion Technology (NIFT)

Rajiv Gandhi Salai, Taramani
Chennai, PIN – 600 113
Ph. 044-22542771, Fax: 044-22542763
Web: www.nift.ac.in
June 2021
 DECLARATION

I, Ms. Srishti Singh, hereby declare that the project work entitled ―A report on the emerging
technological developments in the field of Supply and Value Chain Management‖ is the
result of my own research work carried out by me during the period from May 2021 to June 2021
except as cited in the references.

This report has not been submitted to any other University or Institution for an award of any
degree/diploma etc.

Name of the Student:

Srishti Singh

Date: 23rd June 2021

ii
 CERTIFICATE

This is to certify that Ms. Srishti Singh, of National Institute of Fashion Technology (NIFT),
Chennai has completed their project work titled ―A report on the emerging technological
developments in the field of Supply and Value Chain Management‖ in partial fulfillment of
the requirement for the completion of their course as prescribed by the National Institute of
Fashion Technology.

This ‗Research work‘ report is the record of authentic work carried out by them during the period
from May 2021 to June 2021 under my mentorship.

Dr. A. Sasirekha

Associate Professor

Department of Fashion Management Studies

iii
 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Dr. A. Sasirekha of NIFT Chennai for providing the
opportunity to work on this research paper and for guidance throughout the research work. This
experience has been extremely insightful, practical and has provided me with a thorough
understanding of the subject.

I would also like to extend my gratitude to my family and classmates for sparing their valuable
time to provide their opinions.

Regards,

Srishti Singh

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

LIST OF FIGURES vi

1. INTRODUCTION 1

2. SUPPLY CHAIN MANAGEMENT 2

2.1 Process of supply chain management 2

2.2 Significance of supply chain management 2

2.3 Types of supply chain management 3

2.4 Main challenges within the supply chain 4

3. EMERGING TECHNOLOGIES IN SCM 5

4. FUTURE OF SUPPLY CHAIN IN INDIA 12

4.1 Improved Logistics 12

4.2 Export prospects are growing 12

4.3 New-Age Technologies 12

4.4 Improvement in trade policies 13

4.5 Significant reduction in manual intervention 13

4.6 Optimizing Asset Utilization through Cloud Computing 13

5. CONCLUSION 15

6. BIBLIOGRAPHY 16

v
 LIST OF FIGURES

FIGURE NO. FIGURE NAME PAGE NO.

Cloud Supply Chain Market Revenue Forecast for 2019-
Figure 3.1.1 5
2025
Figure 3.4.1 Supply Chain Management using AI 7

Figure 3.7.1 Amazon‘s drone delivery service 8

Figure 3.12.1 Mobile Robots 10

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 CHAPTER 1

INTRODUCTION

For decades, the capability to reduce costs was the pinnacle of supply chain management.
Customer satisfaction, efficiency, and sustainability all seem to be part of the plan. The strategic
supply chain management decision-making process is greatly influenced by ethical behavior. So,
while cost-cutting is still a priority, it no longer guarantees victory.

Increasing technological advancements are redefining industries, and logistics and supply chain
management may be one of the most impacted. The logistics industry, which is known for its
excessive emphasis on manual procedures and enormous amounts of data maintained throughout
many formats and locations, stands to benefit the most from implementing new technologies and
following the most cutting-edge Supply Chain and Logistics technology trends.

Artificial and augmented intelligence, advanced analytics, and automation, to highlight a few,
have all witnessed substantial improvement in the logistics business in recent years. These
technologies have progressed at an incredible rate, while entrepreneurs with even more cutting-
edge solutions and innovations continue to evolve at a fast pace. However, these developments
bring innovative expectations and standards, enabling logistics companies to adapt or avoid
going behind. Customers, both individuals and businesses, generate a lot of pressure, demanding
that their products or services deliver faster and cheaper than ever before.

According to Professor Scott — a leading expert in the evolution of supply chain management
— supply chain assets are integrated. Professor Scott teaches that modern-day supply chains
―must not only deliver customer value profitability but also work almost every area of the
business to do so—customers, suppliers, sales and marketing, finance, and senior leadership.‖

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 CHAPTER 2

SUPPLY CHAIN MANAGEMENT

Supply chain management refers to the management of a product's or service's entire

manufacturing flow, from raw resources to transportation of the ultimate product to the
consumer. A business establishes a network of suppliers to distribute the product from raw
material suppliers to organizations that meet the needs of customers.

2.1 Process of supply chain management

2.1.1 Planning- Plan and manage necessary resources available to achieve a company's product
or service demand from consumers. Determine measures to evaluate whether the supply chain is
efficient, effective, delivers value to customers, and satisfies objectives of the organization until
it has been implemented.

2.1.2 Sourcing- Determine suppliers to furnish the goods and services required to complete the
project. Then, create procedures for organizing and monitoring supplier relationships. Ordering,
receiving, maintaining inventory, and authorizing supplier payments are all important processes.

2.1.3 Manufacturing- Organize the activities necessary to accept raw components, manufacture
the product, test for quality, package the product for shipping, and schedule delivery.

2.1.4 Delivery & Logistics- Customer orders are organized, deliveries are scheduled, loads are
dispatched, customers are invoiced, and payments are retrieved.

2.1.5 Returning- Implement a program or network for recovering defective, excess, or unwanted
products.

2.2 Significance of supply chain management

2.2.1 Identifying potential problems- When a consumer purchases more merchandise than the
manufacturer is capable of providing, the customer might complain about the lack of service.
Manufacturers may be capable of predicting a limitation through data analysis before the buyer is
disappointed.

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2.2.2 Optimizing price dynamically- The shelf life of seasonal products is minimal. These
items are usually demolished or sold at a substantial discount towards the end of the season.
Airlines, hotels, and other businesses that sell perishable goods modify their pricing on a regular
schedule to meet demand. Similar forecasting techniques, even for hard commodities, can
maximize margins by incorporating analytic software.
2.2.3 Improving the allocation of “available to promise” inventory- Analytical software tools
enable throughout the dynamic allocation of resources and rescheduling of work based on sales
forecasts, actual orders, and raw material delivery commitments. Manufacturers can confirm a
product delivery date when an order is submitted, decreasing the amount of orders that were
already mistakenly filled.

2.3 TYPES OF SUPPLY CHAIN MANAGEMENT

2.3.1 Materials Logistics Management

Physical commodities will almost probably be necessary to submit the products that your
customers need. With the support of third-party logistics (3PL) partners, materials logistics
management (MLM) coordinates everything from planning, sourcing, procuring, building, and
distributing materials.

Although bringing in a 3PL partner isn't mandatory, they typically have connections and
partnerships with other businesses that can help them save revenue.

2.3.2 Transaction Cost Analysis

This methodology may appear complex, but the short version is that it assists supply chains in
ensuring that their resources are purchased at a relatively low cost and that their finished
products are sold at a good margin. TCA can use previous data to determine when to purchase
stuff at the lowest price in order to prepare for a surge in demand.

Essentially, transaction cost analysis uses market data to determine when products should be
purchased so that they can be appropriately stocked at a low cost before being sold off when
demand surges.

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2.3.3 Material Requirements Planning

Maintaining unnecessary components or commodities on stock can make an enormous

difference, especially if the company manages multiple warehouses. Material requirements
planning (MRP) estimates the minimal amount of inventory required to maintain production
without taking up too much space.

This method of planning incorporates both independent and dependent demand, or, to put it
another way, demand for finished goods or component parts. Cutting warehouse space is an
effective model that will save expenses while keeping the company supply chain functioning
effectively.

2.4 Main challenges within the supply chain

2.4.1 Increased costs: According to a survey by eye for transport (EFT), every supplier in the
supply chain expects additional spending. One of the two major challenges is greater financial
expenditure across a supply chain. It's a challenging balancing act to keep expenses low while
retaining great quality.

2.4.2 Meeting customer expectations in a digital economy (including omni-channel

support): The EFT research identifies the second major challenge as managing customer
expectations, particularly through omni-channel services. Multiple communication channels are
now a customer requirement that must be met. Improvements in the channel to a more
customized, direct-to-customer approach are also included.

2.4.3 Risk management: Issues regarding visibility across a lengthy and complex supply chain
heighten the probability of unintentional or malicious incidents. As hyper-connectivity and data-
driven chains become the norm, the challenge of safeguarding the chain from cyber-attacks
becomes even more complicated. The supply chain generates and contains information that is
vulnerable to exposure and manipulation. Data protection is also determined by a number of
regulations.

2.4.4 Streamlining and optimizing the chain: As the chain becomes more complicated with
different stakeholders, this is a critical requirement for chain efficiency and reduced failure
points. Shorter lead times and decreased inventory costs are both advantages of streamlining.

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 CHAPTER 3

EMERGING TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT

3.1 The Cloud- Companies can track materials and components at any phase in the end-to-end
supply chain, get real-time information, and notify consumers about the status of respective
orders. All of this is possible because of cloud computing. Cloud-based solutions improve data
storage, integration, security, and exchange of information in a number of different ways.
Multiple devices and an enterprise of software users are streamlined in their activities and
procedures.

Figure 3.1.1: Cloud Supply Chain Market Revenue Forecast for 2019-2025

3.2 5Gs- Qualcomm claims that 5G is necessary for continuous development, which is
undoubtedly true when it comes to supply chain management. When suppliers aren't connected,

5
obtaining real-time data is problematic. Without 5G, supply chain visibility becomes
unpredictable. Third-party logistics is made possible by 5G's multi-Gbps peak rates, ultra-low
latency, and enormous data capacity, which elevate mobile networks. When people, machines,
objects, and devices are connected via 5G, high-level performance, enhanced efficiency, and new
user experiences become possible. 5G also offers the opportunity to:

● Extract larger amounts of data regarding location, temperature, pressure, and other
critical information in the end-to-end supply chain;
● Ensure uniformity of information sharing with all stakeholders;
● Resolve issues that would otherwise be exacerbated by time delays; and
● Know exactly where your raw materials come from.

3.3 Internet of things (IoT)- The Internet of Things (IoT), which connects multiple devices in a
simplified manner, improves visibility and connectivity while lowering expenses. In warehouses,
wearables and mobile devices such as, Apple Watches, Fitbits, and smartphones are extremely
significant. Wearables, in particular, enable a "touchless" supply chain, which eliminates the
labor-intensive process of selecting things from inventory to fill customer‘s requests, commonly
known as "picking." Warehouse and logistics managers can utilize other IoTs to keep track of
goods and monitor equipment in a secure manner. Other benefits include:

● Improved asset utilization;

● Better customer service;
● Streamlined inventory and supply availability; and
● Safer and more reliable employment conditions.

3.4 Artificial intelligence and machine learning- For supply chain optimization, AI and
machine learning produce completely or semi-automated processes and procedures. By
integrating AI and machine learning to replicate human performance and intelligence,
optimization enhances forecasts, planning, implementation, and maintenance in logistics.

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Figure 3.4.1: Supply Chain Management using AI

AI and machine learning boost the end-to-end supply chain by:

● Tightening data security;

● Applying predictive modeling to third-party logistics;
● Providing full supply chain visibility to improve management of key performance
indicators (KPI);
● Automating inventory management, shipping transactions, and delivery routing; and
● Improving customer service.

3.5 Big data- Every day, enormous amounts of information are generated. Every minute, Google
processes 4.5 million searches, 18.1 million text messages, and 188 million emails. Wearables,
smartphones, and tablets are responsible for a substantial fraction of everyday data usage. With
so much information available, gathering, sorting, cleaning, and analyzing massive data sets
demands sophisticated computing techniques. Companies may utilize data science and analytics
to get interesting insights and modernize supply chain management with data science and
analytics. Big data brings value and assistance to the following areas in supply chain
management:

● Quality control;
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 ● Cash flow;
● Real-time deployment;
● Warehouse efficiency;
● Weather patterns;
● Predictive strategies; and
● Inventory, supply and demand.

3.6 Driverless vehicles- Google's self-driving electric vehicles are universally viewed as the
company's innovation, and many people believe that self-driving cars are the way of the future.
Without human input, a driverless car will be able to navigate itself using navigational hardware
and software. The introduction of these self-driving cars is considered to lower logistics
operating expenses.

3.7 Drone Delivery– This is the most recent trend that has gotten a lot of attention and is
revolutionizing the logistics and supply chain industries. Amazon was the first one to implement
it. Drone delivery, on the other hand, is a relatively new concept, and many businesses remain
skeptical of its implementation. According to a survey performed by Eye For Transport (EFT),
many people seem to believe that the probabilities of drone delivery becoming a reality are
minimal and that it will only succeed in highly specific areas.

Figure 3.7.1: Amazon’s drone delivery service

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3.8 Blockchain- While it is most commonly associated with cryptocurrencies, blockchain, or
distributed ledger technology, is also high on the list of technologies equipped to improve supply
chain visibility and transparency. Because blockchain generates an irreversible record of
transactions, it's ideal for tracking the provenance of products and fostering collaboration in
shared supplier data, especially when parties have conflicting purposes and don't particularly
foster trust.

3.9 Truck Platooning- Truck platooning is a contemporary concept that allows for more
vehicle-to-vehicle communication, encouraging trucks to travel closer together rather than usual
while maintaining constant communication. Traveling close together minimizes drag, which
optimizes fuel efficiency, resulting in safer, more fuel-efficient transportation and perhaps lower
logistics costs.

3.10 Last-mile delivery- Innovative programs are being developed by companies like UPS to
alleviate the last-mile delivery dilemma. The company established eBike, an electric bike
program that accelerates deliveries in locations where parking is restricted. The initiative began
in Portland, Oregon, and Pittsburgh, Pennsylvania, and it came with the tangible incentive of
eliminating hazardous emissions. Even in congested urban locations, programs like UPS' eBike
support the demand for quick deliveries and enable businesses to meet same-day and next-day
delivery commitments.

3.11 On-demand warehousing- Another supply chain innovation that addresses a common pain
point — in this case, companies that need additional warehouse space temporarily but don't want
to take on the operating costs of opening a new warehouse facility — is on-demand warehousing,
which is part of what is attributed to as the sharing economy. Enterprises like Flexe connect
companies in need of warehouse space with companies that have space available to solve this
need. It's a win scenario, as it enables warehouses to cut expenses by alleviating the need to
expand for short-term demands while also permitting warehouses to monetize their available
space.

3.12 Collaborative mobile robots- When compared to typical warehouse automation solutions,
collaborative mobile robots provide much more flexibility and scalability, increasing order
picking efficiency and improving accuracy by encouraging workers through tasks. Collaborative
mobile robots like 6 River Systems' Chuck minimize redundant walking and optimize warehouse
productivity by improving picking routes in real time. Companies can rent 6 River Systems'

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collaborative mobile robots to enhance capacity during rush hours and return them when demand
returns to normal, similar to how on-demand warehousing allows businesses to obtain more
warehouse space as needed without making infrastructure investments.

Figure 3.12.1: Mobile Robots

3.13 Tagging, sensors and geolocation technologies- Tags, sensors, and geolocation
technologies work in harmony with blockchain to provide real-time tracking of individual parts
and products, strengthening traceability and transparency. The United States Department of
Defense uses RFID-IV to track and monitor 24,000 high-value military assets around the world,
ensuring in-transit visibility and reliability while eradicating supply chain blind spots. This
technology enables real-time alerts for situations such as tampering, delays, or assets that enter or
exit predetermined geographical zones, allowing the Department of Defense to execute
contingency plans and avoid congestion.

3.14 Next Generation Control Towers- The foundation of a strong supply chain control tower
is a cross-functional end-to-end digital twin of the supply chain. It also provides some insight
into how events in the extended supply chain will affect the ability to fulfill customer orders. The
digital twin evaluates transportation, warehousing, and manufacturing restrictions, and then

10
generates optimum plans to deal with the inevitable exceptions. Traditionally, supply chain
control towers were more concerned with addressing transportation exceptions or arranging
around exceptions than with implementing effective optimization to enhance service at the
lowest cost.

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 CHAPTER 4

FUTURE OF SUPPLY CHAIN IN INDIA

India is undoubtedly the widest destination for logistic service providers around the world. In the
next few years, it is estimated that the economy would rise by over 10%. Our country is currently
experiencing a fundamental retail boom. All thanks to the increased purchasing power of middle-
and upper-class customers.

But because with our inadequate and underdeveloped infrastructure keeping us from being the
world's next largest supply chain and logistics provider. We are still a long way from being able
to introduce ground-breaking and innovative technology. However, things are currently
changing. By the end of 2021, India's logistics and supply chain market is anticipated to reach
$307 billion.

4.1 Improved Logistics

With increasing investment in infrastructure and operational efficiency, India is gradually
accomplishing its goal of becoming an economic and logistical superpower. Integrated logistics
based on technology are rapidly becoming an integral element of the country. Many automated
sorters and handlers, as well as IoT devices, are currently installed in warehouses across the
country. This helps in-house logistic operations save time.

4.2 Export prospects are growing

Premium brands and industries in unconventional niches are currently being introduced to Indian
markets. Both international exports and domestic consumption are leading to the growth of this.
Manufacturing companies are in considerably better shape now than they were previously. The
quality of production has also improved. The government has implemented plenty of new rules,
such as "Zero Defects, Zero Effect," in order to boost our country's global standing.

4.3 New-Age Technologies

The logistics sector is being encouraged to invest even more in new-age technologies as FDI
inflows continue to increase. Machine learning, data analytics, and deep learning are examples of
ground-breaking and extremely innovative technologies that are now being implemented. All of

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these large programs, such as "Make in India" and "Digital India," have played a significant role
in accelerating the growth of the logistics and supply chain. According to IDG's 2020 State of
Digital Business Transformation Report, 93 percent of companies are considering implementing
these ground-breaking technologies to modernize their logistics and supply chain operations. The
same is being done by their overseas counterparts. Even in the future, the logistics landscape will
endure significant changes. Profits will undoubtedly increase as a result of improved technology
optimization.

4.4 Improvement in trade policies

Because of improved data policies, bilateral trade and international business are being amplified
and encouraged. Trade policies like the Merchandise Exports from India Scheme (MEIS) and the
Service Exports from India Scheme (SEIS) are transforming the business climate. It's also
generating a positive shift in supply and logistics chain management. According to the
Commerce and Industry Ministry, the robust logistics and supply chain industry has stimulated
exports by a whopping $439 billion this year, suggesting that the outlook for 2021 is much
brighter. The Indian government has also encouraged various nations to reduce their tariff rates
and taxes.

4.5 Significant reduction in manual intervention

Business procedures are becoming automated courtesy of artificial intelligence. As a result, there
are fewer manual interventions in freight handling. The procedures are becoming faster and the
quality is improving, which is lowering expenses. It also aids in the elimination of hidden
expenditures, lowering India's overall high logistics costs. This also ensures that regulatory
organizations evaluate the product quickly and that there is minimal handling damage. Real-time
information on crucial geographical statistics is being provided to logistics carriers. This is all
because of RFID and GPS, which have improved the responsiveness of the entire logistical
system.

4.6 Optimizing Asset Utilization through Cloud Computing

Asset utilization optimization is critical for improving operational efficiency. The country's
logistics must endeavor to be leaner, which could only be accomplished through cloud
computing. Cloud computing allows service providers to collaborate by allowing them to share

13
their fleets and networks. It becomes easier for service providers to coordinate and collaborate in
the picking up and delivery of freight when they share information in real-time via cloud-based
platforms. This cuts down on their fleet's downtime. It contributes to the improvement of the
delivery ecosystem's efficiency.

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 CHAPTER 5

CONCLUSION

Emerging technology is the future need of all types of business. Since supply chain management
is the core of all business processes it will also affect the development and more maturity of the
technology. The technology application has equal importance in all the activities of procurement
and logistics management. The technology is improving, and the government is taking the
initiative to support the development of the technology. However, this is important to realize that
companies dealing in supply chain management should also invest in their workforce to use the
technology.

Businesses in the supply chain will face new challenges and techniques in the future years. To
combat unanticipated interruptions, businesses will begin to focus on supply chain resilience.
Digital supply chain twins, robots, AI, and automation, among other technologies, can assist
keep chains agile, flexible, and scalable while adhering to new social distance norms.

Blockchain will take center stage, providing much-needed transparency into transactions and
procedures. The market for cloud-based technologies, as well as supply chain support in the form
of SCaaS, will tend to escalate.

Businesses may be benefited from implementing an SCM software solution in order to keep up
with the upcoming developments in the supply chain industry.

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 CHAPTER 6

BIBLIOGRAPHY

A. (2020, March 9). The University of Tennessee.

https://supplychainmanagement.utk.edu/blog/emerging-technology-in-supply-chain-

management/

B. Banker, S. (2020, December 21). 2021 Supply Chain Technology Trends To Watch.

Forbes. https://www.forbes.com/sites/stevebanker/2020/12/21/2021-supply-chain-

technology-trends-to-watch/?sh=3c4e6eb73ad6

C. Bart Perkins, & Thomas Wailgum. (n.d.). What is supply chain management? IBM.

https://www.ibm.com/in-en/topics/supply-chain-management

D. Dunakin, C. (2020, August 28). 8 innovations that are transforming supply chains. 6

River Systems. https://6river.com/innovations-transforming-supply-chains/

E. Emerging Technologies & the Future of Logistics and Supply Chain Industry. (n.d.).

Tech Mahindra Foundation. https://www.smart-academy.in/blog/emerging-technologies-

the-future-of-logistics-and-supply-chain-industry/

F. How Bright is the Future of Supply Chain and Logistics in 2021 in India. (2021, January

14). Indian Retailer. https://www.indianretailer.com/article/whats-hot/trends/how-bright-

is-the-future-of-supply-chain-and-logistics-in-2021-in-india.a6777/

G. Stackpole, B. (2020, February 14). 5 supply chain technologies that deliver competitive

advantage. MIT Management Sloan School. https://mitsloan.mit.edu/ideas-made-to-

matter/5-supply-chain-technologies-deliver-competitive-advantage

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H. Verma, P. (n.d.). 13 Essential Types of Supply Chain Management Tools for 2021.

SelectHub. https://www.selecthub.com/supply-chain-management/13-essential-supply-

chain-management-tools/

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