Recent Developments in the Field of SCM

Abstract: Much like living things, supply networks must develop to exist. The supply
chain software industry is changed by new technologies like robotic process automation
(RPA), cloud computing, and artificial intelligence (AI), which replace weak connections.
To handle post-pandemic disruptions, supply chains will place a greater emphasis on
resilience and risk management. Global supply networks will increasingly employ
blockchain technology. Decision-makers will have access to digital environments where
they can examine real-time data from their physical supply chains thanks to digital
supply chain twins. The usage of supply chain as a service (SCaaS) providers will soar.
Supply chains that are circular will make operations waste-free. The need for cloud SCM
solutions will increase. The use of embedded analytics, IoT, and AI will increase, and
there will be numerous integrations. Innovation is pushed to the fore by automation and
robots. Businesses will be able to accommodate enormous numbers of devices and
connections thanks to 5G networks. The shortage of capacity will persist as long as
shipping demand keeps rising.

Key Words: Supply Chain Management, Information System, Artificial Intelligence, IoT,
Innovation, 5G network

1.0 INTRODUCTION

1.1 General Information

In a similar way to living things, supply networks must change to survive. The supply chain
software industry as a whole is changed by new technologies including robotic process
automation (RPA), cloud computing, and artificial intelligence (AI). To deal with interruptions
caused by the post-pandemic period, supply chains will place more emphasis on resilience and
risk management.
Worldwide supply networks will increasingly employ blockchain. Twins of the digital supply
chain will let decision-makers to access real-time data from their physical supply networks in
digital surroundings. There will be an explosion in the use of supply chain as a service (SCaaS)
provider.
Operations may become zero-waste environments with the support of circular supply networks.
The popularity of cloud based SCM systems will increase. In-depth integrations will occur for
embedded analytics, IoT, and AI as they gain popularity. The advancement of innovation is
fuelled by automation and robotics. With the help of 5G networks, businesses will be able to
support massive numbers of connections and devices. As long as shipping demand keeps rising,
there will be a capacity crunch.

2.0 CHALLENGES

Worldwide labour and trucking shortages were caused by the epidemic. The American Trucking
Association projects that there will be 80,000 fewer truck drivers in 2030 than there were in 2021.
The transit of products was impeded by this incident, and shipping costs increased. According to
research by Accenture, supply chain interruptions brought on by pandemics might cost the
European nations' GDP up to €920 billion by 2023. The main causes of these disruptions are a
persistent labour shortage, increased freight prices, a lack of material supply, port congestions,
and logistical failure. Supply chains are continually becoming better, but recovery will take longer
than expected. Business executives depend extensively on technology and strategy restructuring
as they deal with shifting dynamics in supply networks.

3.0 TOP TRENDS

The main Supply Chain Management trends over the upcoming several years are as follows:

Fig. 1: Key Supply Chain Trends

3.1 Post-Pandemic Resilience

Numerous sectors were disrupted by the economy, school closings, and varying lockdowns.
Global supply networks are putting the pieces back together and exploring new ground. Since the
start of the epidemic, Statista research reveals a very variable supply chain pressure indicator.
According to McKinsey, in order to remain resilient, businesses must identify hidden risks and
take steps to mitigate them.

Damage from supply chain disruption extends beyond of value chains. From obtaining raw
materials to clients getting their products, value chains cover it all.
 While it's true that the pandemic had an impact on higher-tier suppliers, some of the major harm
was done to the practically undetectable bottom levels. Any bottleneck or disturbance along a
value chain has a disastrous impact on several subsequent processes.
In order to remain adaptable and robust in a volatile global context, supply chains had to
reevaluate how they conduct risk assessment as a result of these emerging threats. Supply chain
managers were driven by the current turmoil to stand back and evaluate their vulnerabilities:

 Where do the supplier relationships have gaps?

 Are there any crucial parts of value chain that are completely outside the control?
 Do they rely on products from a single supplier that, if they have issues, might cause their supply
chain to fail?
 Do they have sufficient end-to-end process visibility to maintain flexibility in the face of unforeseen
disruptions?

3.2 Blockchain

It makes logical to respond to the desire for greater supply chain visibility as blockchain usage
grows. Supply chains can benefit from blockchain's end-to-end transparency thanks to its database
structure. What is blockchain, precisely, before we continue?

Blockchain uses "blocks" of data rather than the tables that are used by traditional databases to
store information. As data comes in, new blocks are generated and linked to the older ones as
these storage blocks finally reach their limitations.

These blocks provide immutable records with precise time stamps that offer users vital insight into
all of their transactions.

The advantages of Blockchain are numerous and include:

 enhanced materials tracing from a source, via the supply chain, to the client.
 reductions in administrative and paperwork procedures.
 improved transparency and transactional security with suppliers and subcontractors.
 improved fraud protection and detection for expensive products.

With these benefits, it's simple to understand why a study by Research and Markets predicts that
the worldwide supply chain market for blockchain will reach $3,272 million by 2026.

3.3 Digital Supply Chain Twins

Making judgments based on real-time supply chain data manually is less appealing when social
distance emerges as the new norm. Real-time data from all of the physical fronts of your supply
chain is required to combat this in order to prevent costly interruptions, in addition to tools like
prescriptive analytics.

Digital supply chain twins are still one of the most important trends in the industry. Digital supply
chain twins accurately replicate a whole supply chain and all of its associated procedures in a
user-friendly digital setting.

IoT (Internet of Things) data collected in real-time may provide decision-makers with a
comprehensive picture of everything from client orders to specific commodities moving through
the supply chain.

It can alert you to equipment that requires maintenance and highlight production delays and any
potential consequences. However, building a digital supply chain twin involves significant
financial and material outlays.
Digital twins open the door for their use globally by offering significant benefits to many
businesses outside of supply chain management.

3.4 Supply Chain as a Service (SCaaS)

It is practically hard to manage every aspect of your supply chain in-house as value chains get
more complicated. Moving from a manual environment to a digital one, utilising a sizable number
of IoT-enabled devices, analysing data, and maintenance will become vital tasks requiring expert
manipulation and upkeep.

Many businesses will outsource many of these crucial activities because they lack the necessary
personnel in-house to do them.

Better customer service, more productivity, and cheaper expenses are all advantages of SCaaS.
Similar services are offered by SCaaS, but with added supply chain advantages like improved
asset management. Flexibility stands out as a benefit in the pandemic landscape, where resilience
and agility are at the forefront.

Adopting SCaaS is challenging because it requires giving up control over important supply chain
components; change is and always will be scary. However, when we delegate tasks, we'll free up
important time for creativity, advancement, and efficiency.

3.5 Circular Supply Chains

The concept of sustainability is quickly overtaking other concepts in the field of supply chains. In
the past, linear supply chains produced waste by discarding extra materials once a product was
created.

Circular supply networks recycle leftover pieces back into their value chains rather than making
an item and starting again with fresh components. To cut to the chase, circular supply chains
encourage a waste-free environment.

Customers are concerned about a company's ethical standards. frequently demanding particular
information on when, how, and where manufacturing occurs. Governments frequently impose
restrictions that restrict trash and encourage reclamation, so consumers aren't the only factors at
play here. Choosing a circular chain can help steer you in the correct way. Ethical business ethics
and environmentally friendly sourcing are essential elements of a successful organisation. The
circular technique can significantly reduce expenses, but it might be challenging to apply.

According to a Research and Markets report, the market for reverse logistics is predicted to grow
at a CAGR of 5.80% from 2022 to 2027.

3.6 Cloud – Based Products

Cloud systems reduce sunk costs and customisation issues that afflict traditional software while
providing comparable levels of functionality and security to its on-premises equivalents. In 2022
and beyond, the cloud SCM industry is anticipated to expand. In fact, according to a recent
Markets and Markets analysis, the market for cloud-based supply chain management will reach a
value of around $45.2 billion by 2027.

The Chairman and CEO of Tompkins International, Jim Tompkins, provided us a few explanations
for this expansion. He said "people are past the dread of someone else dominating them" as the
primary factor. Prior to total control over their uptime and security, many opponents of cloud-
based software were concerned about a third party accessing their programme. Vendors, however,
strive to be dependable and trustworthy business partners as cloud-based solutions become more
and more popular. People can now concentrate on the actual advantages of this deployment
because they aren't as afraid of the cloud anymore.
 Tompkins advised businesses considering an SCM solution to be prepared for the transition to
their new system. Many first-time customers feel that a customised system must exactly match the
procedures and needs of their company. Businesses should really think about designing SCM tools
to help them achieve their ultimate objectives, whether through cloud-based flexibility or highly
customised on-premises solutions. You may modify your software with an on-premises solution to
support your company operations precisely as they are. Software that is configurable will
generally support your business, but you might need to alter a few procedures to make them more
compatible with the technology.

3.7 AI and IoT

The CEO of FarEye, Kushal Nahata, is particularly interested in how software may provide
companies a competitive edge. Stakeholders will need to be aware of the status of each resource as
well as the timing and location of their shipments. In the current environment, where eCommerce
is upending the online retail industry, supply chain management may serve as a brand
differentiator. Much work should be placed into modernising the technology in order to keep
people captivated and devoted to one company.

The Internet of Things is the first supply chain management trend, according to Nahata (IoT). The
availability of affordable and trustworthy sensors, the widespread use of the internet, the
enormous expansion in data storage and processing power, and the introduction of AI are the
primary factors driving IoT growth. IoT will boost productivity in the delivery and supply chain
sectors in the future. These new resources are used by many logistics professionals to improve
their supply networks, save expenses, and make money. In order to address the numerous
inefficiencies in today's supply chains, he also forecasts a surge in artificial intelligence.

Customers have always been unaware of the status of their goods thanks to the supply chain,
which has generally been like a black box for businesses. Manufacturing companies are losing a lot
of time, money, and inventory as a result of unanticipated freight movement. India alone spends
twice as much on road logistics as nations with effective transportation systems do, or about $160
billion.

According to Nahata, a lot of businesses are already using AI to improve their supply chains since
it can quickly save costs and time commitments while accelerating workflows. Business models
may be reimagined by artificial intelligence by changing the way you see emerging supply chain
management trends. AI examines current operational trends to forecast the outcomes of future
events. It automates decision-making at a lower level and strikes a balance between supply and
anticipated demand. Thus, managers may practise their expertise in high-level strategic thinking
and decision-making.

3.8 Robots and Automation

 Increase Efficiency
 Improve Fulfilment Processes
 Strengthen Productivity
 Boost Customer Satisfaction

With these benefits, it is simple to understand how the worldwide robotics industry will grow
from $55.8 billion in 2021 to $91.8 billion in 2026.

Robotics vendors may activate and integrate their products with your operations from a secure
distance rather than requiring human presence to set up new machines at a physical place.

Automation has a reputation for stealing jobs, which is understandable. It takes over low-value
chores so you may refocus on problems and projects that are higher on your priority list.
Managers have the option of retraining their present staff rather than laying off workers. Due to
this strategy, WMS (warehouse management system) providers could put more effort into making
sure their systems are compatible with AMR equipment.

3.9 5G Networks

What changes will be made to supply chain management in the future as 5G networks start to
spread throughout the globe? Networks with the capacity to handle massive numbers of devices
are required as IoT-enabled products flood the market.

The change in network density between 4G and 5G is astounding. 10,000 devices can be supported
by 4G networks per square mile, whereas 100 times as many can be supported by 5G networks. As
digital transformations spread, a robust network is required to ensure quick and seamless
communication between processes, machinery, and users.

Quality is improved and key areas of the supply chain, including logistics, distribution, and
warehouse management, are optimised by 5G.

3.10 Capacity Crunch

The threat of a capacity shortage has stressed the trucking sector for the past few years. In 2020,
there were hints that things may get better, but with the epidemic now arrived, things don't seem
good for the near future.

Delivering items on schedule is difficult when more and more customers shop online. There were
expectations that things would slow down just enough for strapped distributors to catch up, but
this isn't the case at the moment.

Revenue will rise as a result of the ongoing need for product transportation, but there will be
significant logistical difficulties. Aside from the obvious problems brought on by the nearly
constant demand, minor problems like truck maintenance must be addressed immediately.

Particularly during periods of extreme demand, a vehicle breaking down or falling out of service
might send a disastrous wave of slowdown. For businesses, maintaining an agile business process
management system that can adapt to market changes will be more crucial than ever.

To automate operations and save costs, truck makers will need to make an investment in
manufacturing software. Stronger supply chain collaboration systems may be necessary for
shippers and trucking firms to navigate a landscape that is changing but has previously been
largely stable.

4.0 CONCLUSION

Businesses involved in the supply chain will face new difficulties as well as technological
advancements in the upcoming years. In order to overcome unforeseen interruptions, businesses
will start concentrating on supply chain resilience. Utilizing robots, AI, automation, and digital
supply chain twins will assist keep chains adaptable, scalable, and nimble. Blockchain will emerge
and offer transparency into transactions and procedures. Along with supply chain support in the
form of SCaaS, the market for cloud-based systems will keep expanding.

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