Supply chains continue to face challenges—from economic pressures to extreme weather—that disrupt operations from sourcing to delivery. As these issues persist, companies must embrace innovations and trends to enhance resilience and maintain a competitive edge in 2024.
Here are five key innovations driving supply chain transformation this year:
ntory Management
After struggling with inventory issues over the last two years, including a series of stockouts, overstock and steep discounts, retailers are now starting to get better control of their goods by implementing new strategies and technologies. With the help of sophisticated inventory management software, retailers are leveraging data to identify shopping habits and trends to better match inventory types and levels to customer demand. In addition to offering valuable insights, these software solutions provide real-time visibility across the entire supply chain, enabling companies to track products and proactively respond to any potential disruptions or delays to minimize stockouts and ensure customer satisfaction.
Store Fulfillment
As warehouse rental rates continue to climb, more and more companies are starting to utilize their retail stores for e-commerce fulfillment. In addition to click-and-collect services such as buy online pick up in store (BOPIS) and curbside pickup, forward-thinking retailers are transforming their backrooms into mini fulfillment centers, implementing warehouse automation like autonomous mobile robots (AMRs) to help fulfill online orders while reducing delivery times and costs. Walmart is taking this concept to the next level by implementing parcel stations, or mini post offices, in select store locations and utilizing their private fleet to transport online orders, providing customers with a wider assortment of products and more time to place orders for next-day delivery.
Transportation Innovations
Like most sectors of the supply chain, transportation will also face its fair share of challenges in 2024, as rate increases, labor strikes and shortages and other disruptions likely to continue throughout the year. With speed and sustainability top priorities in 2024, many companies are beginning to explore alternative shipping and delivery methods. As rail services and partnerships continue to increase and more companies are expanding operations in Mexico and Canada, intermodal shipping is emerging as a popular option to reduce transit times, costs and emissions. When it comes to delivery, on-demand platforms will continue to expand beyond restaurants and supermarkets this year, with retailers like Best Buy, JD Sports, Staples and Camping World just a few of many that have recently partnered with services like DoorDash and Instacart to offer same-day deliveries.
Sustainability
While consumers are becoming increasingly concerned about environmental, social and governance (ESG) initiatives, pending regulations—including the U.S. Securities and Exchange Commission’s climate disclosure rule—are now requiring companies to take action in 2024. In addition to adopting greener transportation tactics, it is important for companies to incorporate responsible and sustainable practices across their entire supply chain operations, including:
- Supplier selection and ethical sourcing
- Supply chain transparency and collaboration
- Waste reduction and recycling
- Implementing energy-efficient technologies and processes
- Enacting fair labor practices
- Promoting diversity and inclusion
- Conducting regular audits and lifecycle assessments
Digital Technologies
Investing in supply chain technology remains a top priority in 2024, as companies continually strive to increase resilience and minimize risk across their operations. According to Gartner, 82% of CEOs in supply-chain-intensive industries plan to increase investments in digital capabilities across their enterprise. Applications that support artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), blockchain and advanced analytics are all gaining traction in 2024. These cutting-edge technologies will play a critical role in helping companies transform their supply chain operations to increase efficiency, visibility, agility and cost savings. While implementing advanced technologies offers many benefits, security and integration issues can create new challenges. In addition to investing in the right technology, companies must also invest in the right talent and ensure employees have the necessary skills and training to achieve success.
Embracing these trends enables companies to increase supply chain resilience and business longevity. For nearly 50 years, Tompkins Solutions has been providing custom, data-driven solutions to help clients overcome complex supply chain challenges and achieve profitable growth. Contact us today to learn how we can help you future-proof your supply chain operations and gain a competitive advantage in this constantly changing environment.
How can we help improve your supply chain operations?
Schedule a consultation or contact Tompkins Solutions for more information.
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