2024 promises to be a transformative year in supply chain management and technology, introducing a new era of innovation and efficiency.
Whether it’s customer expectations, an unpredictable economy, delivery time, or quality control, supply chains can only support a business and its customers if it is resilient. No matter what industry you are in, your supply chain continues to increase in complexity to reach accurate demand, resources, and labor. Learn how businesses are planning to reach new levels of supply chain insights in 2024 and reaping the rewards of data-driven technology and AI-powered automation.
In a recent Gartner survey, only 21% of the respondents said that they have the visibility and agility to shift sourcing, manufacturing, and distribution activities around rapidly. Gartner also found that more than half of the businesses anticipated being highly resilient within two to three years. This implies the huge priority shift for businesses to increase resilience as many emerge from the Covid crisis and beyond.
Your brand and your reputation both balance on the dependability, quality, cost, and speed of your supply chain. As supply chains become more complex and expectations continue to drive innovation, it is imperative to have the proper flexibility and control across the business. Cloud ERP is influencing thousands of global business operations with the ability to access important data within a single integrated system, from anywhere, at any time.
A trend to watch in 2024 is the further expansion of advanced technologies and capabilities in the supply chain. AI, automation, machine learning, Internet of Things, blockchain, and data analytics are projected to enhance and streamline supply chain management better than ever.
What is Supply Chain Management & Why is it Important?
The Benefits of an Integrated Supply Chain – Lower costs, boost profitability, gain visibility and optimize service levels.
A supply chain integrates the entire process between a company and its suppliers, including the transactions around materials, supply and demand, support and providing the insight and visibility of orders to customers. According to ABI Research, "Supply chain orchestration requires software to be more than a system of record and provide risk analysis and run simulations, enabling manufacturers to understand and prepare for supply chain shocks.”
Supply chain management is the coordination and oversight of all activities involved in the production and distribution of goods, from the procurement of raw materials to the delivery of finished products to consumers. It covers the entire process of planning, sourcing, delivering, and returning products. SCM aims to optimize efficiency, reduce costs, and enhance overall business performance.
The importance of supply chain management lies in its ability to create a seamless, integrated network between the flow of goods and information. Top Supply Chain Management benefits:
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Cost Efficiency: Identifying areas for cost savings through effective resource management, minimizing waste, and optimizing transportation and storage.
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Enhanced Customer Service: Efficient supply chain management ensures timely delivery of products, improving customer satisfaction and loyalty.
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Improved Collaboration: SCM involves collaboration with suppliers, manufacturers, distributors, and retailers, fostering better communication and coordination among stakeholders.
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Innovation and Adaptability: Effective supply chain management encourages innovation in processes and technologies, allowing businesses to adapt to evolving market trends and technological advancements.
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Sustainability: SCM plays a role in promoting sustainability by optimizing transportation routes, reducing waste, and encouraging eco-friendly practices throughout the supply chain.
4 Benefits of a Strong Supply Chain
- Profitability: Supply chain costs can reach up to 20% of a company’s total revenue. A focused supply chain can reduce costs, improve forecasting, and optimize inventory levels for greater profitability. If a supply chain isn’t efficient, inventory and shipping charges add up to strain a company’s cash flow.
- Competitive advantage: With an exceedingly competitive market and Amazons’ effect on customer expectations with same-day/next-day delivery, having a highly efficient supply chain provides a huge advantage over competitors. An optimized supply chain can allow businesses to respond quickly to market changes and customer demands.
- Revenue: Companies with a strong supply chain generate more revenue and obtain higher profits year over year.
- Risk management: If a supply chain isn’t efficient in product demand or amidst disruptors, it is a major risk to the entire operation. Intelligent predicted risk functionality can predict potential late purchase orders, sales orders, and transfer orders.
Major supply chain trends in 2024
1. Focusing on Resilience & Risk Prevention:
Because supply chains are interlinked, complex and expanding globally it has never been more important to focus on risk prevention and supply chain resilience. Improving manufacturing and supply chain visibility is a top priority for 55% of companies, along with increasing speed of new product innovation, improving customer satisfaction, and enhancing supply chain resilience and agility.
What is Supply Chain Resilience? SCR is a supply chain’s capability to react and recuperate promptly after a disruption. For many businesses, resilience has become a popular word as handfuls of factors affect supply and demand daily. To protect supply chains from risk, businesses have been forced to seek additional suppliers and resources for critical parts and invest in software that gathers real-time information across the entire business.
2. Flexible shipping and fulfillment options:
The rise of e-commerce has forced companies to think outside the box and come up with innovative solutions. To keep up with customer demands, businesses have been establishing more distribution centers, transportation hubs, and pickup points closer to key retailers. This strategic move not only allows for better logistics tracking and optimization but also ensures a seamless and efficient shopping experience for customers.
Flexible fulfillment increases sales, customer loyalty, and the ability to adapt to demand and scale logistics. By adjusting to sell products from any available warehouse when inventory runs out, brands can ensure that customers can always get the products they want. This flexibility also assists with customer loyalty, as satisfied customers are more likely to continue purchasing from a brand and recommend it to others. Flexible shipping and fulfillment allows for better coordination among warehouses, distribution centers, and stores, enabling the company to handle fluctuations in customer demand. With a responsive supply chain, brands can easily grow and expand while meeting market changes.
What is Demand Planning? Demand planning is an integral part of supply chain management. Demand planning helps businesses meet demand through planning, predicting, and optimizing the balance between opportunity and supply network capability. Effective Demand planning creates ideal inventory levels, shipping timelines, and all the steps needed to meet demand.
3. Using digital supply chain to predict disruptions:
Digitalization: Enhance visibility with a fully integrated end-to-end supply chain. Shifting from physical to digital data empowers supply chains with technologies like IoT, AI, blockchain, and cloud solutions. In the upcoming year, organizations will fast-track digital ecosystem adoption, striking a balance between long-term automation investments and implement solutions to enhance efficiency. These efforts will relieve employees of repetitive manual tasks, and allowing them to focus the business, not maintaining the software.
What is Supply Chain Planning (SCP)? SCP ensures that businesses have the right product in the hands of the customer and meet their demands through the most efficient process possible. Supply Chain Planning uses business forecasting, inventory management, and pricing strategies to target materials and components that need to be purchased from suppliers. SCP also helps to establish a roadmap around distribution, fulfillment, and production. Learn more about NetSuite Inventory Management
4. Accelerated use of Analytics and Automation:
Supply chains have undergone a continuous transformation and digitalization over the years, adapting to the changing needs and demands of the market. In 2024, supply chains are gearing up for Conversational AI, making business interactions smoother. Cutting-edge AI solutions, especially in conversations with external partners, are expected to streamline logistics, speed up supplier onboarding, and transform processes like inventory management and payments.
The future of AI: According to Gartner’s prediction, by the year 2025, AI technologies will contribute $5 trillion in economic value to various industries and sectors around the world. This shows the growing reliance on AI as a strategic tool for organizations to gain a competitive edge and thrive in a digital and data-driven world, while also highlighting its potential to streamline processes, increase productivity, and create new revenue streams and business models.
Harnessing the power of supply chain data and analytics is crucial for organizations looking to maintain a competitive edge. With analytics and automation, businesses can stay ahead of the curve, identify inefficiencies, and make informed decisions that drive success. This includes using standardized freight data exchange for operational efficiencies, streamlining logistics, predicting demand, improving inventory management, enhancing the customer experience, and optimizing product performance with data.
What is Supply Chain Analytics: Do you want to improve your supply chain logistics to resolve inefficiencies? Gain a competitive edge with Supply Chain Analytics as it analyzes the information companies use for inventory management, warehouse management, fulfillment, procurement, order management, and transportation management.
5. Changing Demographics:
Consumers are shifting to new locations, changing purchasing behaviors, and creating new opportunities for expansion in new landscapes. Supply chain leaders are facing challenges that require an immediate change to manage sourcing, logistics costs, and optimize performance.
Understanding the impact of changing demographics on global supply chains is vital for businesses. By analyzing future customer locations, planning production facilities, and identifying suitable workforces, companies stay agile in response to demographic shifts. Geographic information systems help businesses decipher changing consumer needs and strategically plan production facilities. This focus on demographic analysis and location intelligence is not just a short-term trend but a game-changing strategy with lasting effects on the supply chain.
According to Gartner, 83% of businesses are increasingly recognizing the critical role of the supply chain in enhancing the customer experience and are now prioritizing customer experience within their digital business strategies. Learn the reasons why fast-growing businesses are moving to the NetSuite ERP over other competing software choices to transform their business and get out of the world of outdated, disconnected, legacy systems.
NetSuite Supply Chain & Inventory Management Benefits:
Fast-growing companies of all sizes and a wide range of industries are rapidly adopting cloud ERP systems to help fuel growth. ERP gives a global, real-time view of data, reporting, BI, and better visibility across the business. With an ERP system in place, accurate information helps businesses to make better decisions, lower costs, and enhances customer service.
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- Global ERP designed for a future-facing business.
- #1 Cloud platform in the industry.
- A unified data model that eliminates integration hassles and disconnected point solutions.
- React swiftly with changes and challenges — NetSuite replaces complexity with a single software suite that prevents errors and delays.
- Remain informed about your business – Receive actionable insights on every aspect of your operation at any time.
NetSuite provides the competitive tools businesses need in a world where quality and transparency are extremely important.
By embracing the NetSuite cloud as part of a digital supply chain strategy, companies are not only positioned for today’s fast-paced, highly competitive environment, but are positioned to significantly improve employee retention and customer satisfaction. NetSuite ERP gives a global, real-time view of data, reporting, BI, and visibility across the business.
To learn more about NetSuite supply chain management for your business, contact Protelo today for a free product tour and demonstration.
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