IoT and digital twins

Intra-enterprise supply chain visibility also matters, and the trend is clearly towards better insights. Thanks to the Internet of Things (IoT), companies can now measure inventory levels and stock movements automatically as millions of sensors instantly report back to a central hub. Sensors can track goods all the way from the factory floor through to the store.

This wealth of data provides the opportunity for advanced analytics: analysing logistics and supply chain activity more deeply than ever before in order to better optimise supply chain operations. Doing so reduces costs and irons out the glitches that today’s customers find so intolerable. In fact, supply chain data is now so detailed that companies can build a virtual version of a supply chain called a digital twin. Digital twins can be tweaked and modified to find improved ways of operating – which can then be implemented in the real world.

AI, intelligent automation and RPA

Indeed, digital supply chain optimisation is no longer optional, and leaders in logistics innovation look to advanced tools such as artificial intelligence (AI) and indeed intelligent automation to get the most out of their supply chains. AI has the ability to analyse and optimise supply chain data to a level that cannot be matched by humans utilising data analytics tools.

Combine AI with other technological advances such as digital twins and companies can drive supply chain productivity to levels never seen before, giving companies a clear cost advantage over competitors. Furthermore, intelligent automation ensures that automated supply chains utilise available data and insights to remain agile, responsive and scalable.

Robotic process automation (RPA) is also set to reduce labour costs and minimise errors by automating routine processes on existing supply chain software platforms.