Supply Chain Trends we saw in 2016
The Use of Predictive Analytics, Planning Tools and Machine-Learning
Some people are still telling us that having all the data in one place is the goal. Truth is, all your data in one place is only the first step. The real question is – what are you going to do with all that data? 2016 showed us that more and bigger data doesn’t make us smarter unless we couple that intelligence with problem-specific techniques that allow results producing decision making.
Advanced analytics and machine learning technologies that can simulate business scenarios, predict outcomes and make recommendations are changing business as usual. The applications of predictive analytics are nearly endless, from deciding where and how to source raw materials to managing supply risk and optimizing production and logistics.
Transparency, Quality and Sustainability will Trump Cost-based Decision Making
The days of making supply decisions solely based on cost are long gone. Today’s consumers want to ensure the products they purchase are safe, of high quality and responsibly sourced. This is especially true in the food services industry, which has seen a massive movement away from low-cost offerings to Farm to Fork. Beyond quality, food safety and handling has become far more important to many rather than lowest cost. The push for quality, safety and sustainability extends far beyond the food supply chain and represents a radical evolution in how consumers buy and demonstrate their loyalty to brands.
“In increasing numbers, consumers . . . align with brands that offer quality products and make the world a better place. The organizations that best integrate sustainability into their systems and processes will experience a direct correlation to sales and brand reputation . . .” says Pierre-Francois Thaler, CEO and Co-Founder of EcoVadis.
Increased Corporate Card Acceptance will Help Streamline Supply Chain Processes
Apps like ApplePay, Google Wallet and Venmo, to name a few, are dramatically changing how we pay for goods and services in our personal lives. The B2B payment structure is simultaneously undergoing its own transformation. With increased security measures and streamlined processes, businesses are looking at new ways to bring their payment and receivable solutions up to speed.
The latest chip technologies implemented by issuers like MasterCard and Visa have enhanced security and shifted liability to a point where suppliers will accept cards at a greater rate, leading to a more efficient and accurate supply chain, with accelerated bill payment and receipt, fewer processing errors and eliminating the need for invoice processing and delivery.
Business and Consumer Applications Converge
The proliferation of apps has resulted in a ‘blending’ of the historically separate worlds of business and consumer software and technology. Advancements in the user experience, seen specifically in today’s consumer app-driven world, have joined the enterprise scene. There are great tools for individual productivity. There are great enterprise tools. Rather than forcing one into the other, 2016 was the year they began to merge rather than duplicate.
Consumer and enterprise technologies have also become less distinguishable. Take robots, for example. 2016 saw the widespread growth of robots in manufacturing. We now have robots that can perform household chores such as vacuuming floors. For those who remember Rosie from The Jetson’s, we may see her in our life time both on the manufacturing floor and in our homes.
The Talent Gap will Be More Directly Addressed
“The shortage of qualified procurement talent –those that can take advantage of the innovations and techniques available to the world’s most successful organizations—will be more directly addressed in 2016,” said Ed Bauer, president of PROACTIS Holdings North America.
The supply chain talent gap has been a pressing topic for years – covered at length by the media, analysts and at industry conferences and events. Organizations that invested in adding supply chain talent – through both internal hiring and external partnerships – were the big winners in 2016.
DrContract Consulting exists for that very reason. Let our talent help you business by providing the skills your company needs without the long term commitment of hiring employees. DrContract Consulting provides an un-matched Return on your Investment. Check out drcontractconsulting.com today!