TechDogs-"How Supply Chain Planning Software Is Shaping The Future Of Logistics"

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How Supply Chain Planning Software Is Shaping The Future Of Logistics

By TechDogs

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Being a sneakerhead isn’t easy!

Let’s just put this out there - the #sneakerlife often has us waiting at odd hours for the newest drop, fawning over the latest collaboration and endlessly scrolling to our next badass pair of kicks. Once that pair drops, the manic envelops us as the "20 pieces left" pop-up lays tension so thick that you can slice it with a knife. After relentless attempts and a whole lot of rigamarole, you get your hands on the sneakers!

That's not it - once you wear them, you must carefully meander around puddles, the rain, the muck and people who are likely to step on your fresh shoes!

If you cannot relate, well – we are happy for you.

If you do relate, however, have you ever wondered what goes in the background of this? We have - and the questions kept us up on many nights - ranging from inception, implementation, production, testing, delivery, importing, exporting and countless other moving parts.

The supply chain plays a bigger role in our lives than we think. We mean, think of sourcing the right avocado from the tropics to getting ‘Basmati’ rice at your local grocery store. How do things reach places? More importantly, what technologies play a role in it?

That's what we, TechDogs aim to uncover. So, read on about Supply Chain Planning Software and what role it plays in optimizing the future of logistics.
TechDogs-"How Supply Chain Planning Software Is Shaping The Future Of Logistics"-"Are There Quacks In Your Supply Chain?"
Over the last few decades, logistics has gone through tremendous changes; from an operational function that supported sales and manufacturing to the creation of an independent supply chain management function. Today, in some companies, it is even being led by a CSO (Chief Supply Chain Officer), highlighting just how critical it has become in the modern world.

The supply chain management function now focuses on advanced planning processes such as analytical demand planning, integrated operations or optimizing customer outreach to suppliers. With the supply chain being such an integral part of the customer experience today, one cannot overlook the efficiency of this process anymore.

The increasing power and capability of machines in logistics may lead to a change in how organizations approach their supply chain workforce, in terms of required skills, tasks and roles. Yet, more critical is the adoption of new technology in the supply chain sphere, that will give businesses a much-needed edge. Based on a recent survey of 499 supply chain leaders, 65% believed that adapting new technology is the most important strategic change supply chain organizations will face five years from now. In fact, 52% of these supply chain leaders viewed AI as an ‘important and disruptive’ technology while 40% indicated the same for digital transformation in supply chains.

In the coming years, perhaps sooner than later, almost all work will likely involve people working alongside technology or robots – and supply chains will be among the first to adopt this change. So, how will this impact your business and how can you turn this into an opportunity for growth?

Read on as we explore how Supply Chain Planning Software is reshaping the future of logistics!

What Is Supply Chain Management?

To cut a long story short, supply chain management and logistics focus on the flow of goods from the point of origin to the endpoint. This requires careful coordination of supplies, labor and facilities to make sure items can move through the supply chain as required. While logistics is a key component of supply chain management it is just one piece of the equation.

Supply chain management comprehensively covers all the coordination between partners and stakeholders that have a role in the global supply network. This includes sourcing, manufacturing, transporting, storing and selling, with the outcome being an efficient flow of goods.

We mean, it’s all about efficiency – an efficient supply chain can make or break your brand, with industry leaders, such as Amazon, mastering the game. Remember the huge shortage of chicken in KFC due to their supply chain collapse? The management of the KFC fast-food chain had to temporarily close 700 out of 900 of their UK restaurants in 2018 due to this fiasco. If only they could have predicted it using a supply chain planning solution – or Yoda!
To fill loopholes that can disrupt business operations, we have Supply Chain Planning Software. Let’s learn more about it!

How Does Supply Chain Planning Software Come Into The Picture Though?

Simply put, supply chain management is the process of planning, implementing and controlling the operations of a supply chain to satisfy customer requirements as efficiently as possible. This spans all movement and storage of raw materials, work-in-process inventory, transportation and delivery of finished goods from the point of origin to the point of consumption.

How does the Supply Chain Planning Software help? An effective Supply Chain Planning Software can help businesses plan, execute and track supply chain operations. It includes a variety of features to manage inventory, orders and transportation, which is why it is used by various kinds of businesses.

Who needs this software, you ask? Small businesses may only need basic functionalities to keep track of inventory and orders. However, larger businesses may require more complex features, such as supply chain optimization, data insights for inventory and real-time tracking.

Either way, it helps decision-makers save time and money by automating processes, improving communication and collaboration between different departments and suppliers and streamlining the supply chain for better logistical outcomes.

Moreover, the best Supply Chain Planning Software offer many levels of security as these tools typically include features like data collection, demand forecasting, asset and business tracking, sales, operations and production planning, process automation among others. When choosing this software, you want to look for security features like two-factor authentication (2FA) or multifactor authentication (MFA) to protect business data. This way, you can effectively and securely manage your entire supply chain workflow, from origin to end consumer – what more do you need?

Ahh yes, you need to understand how this nifty supply chain planning tool is changing the course of the future, right?

How Does This Change The Face Of Logistics?

Logistics is a huge aspect of supply chain management and it is critical to enhance your logistics with modern digital solutions. This will allow you to improve your supply chain operations and increase efficiency, as it improves customer experiences, optimizes the movement of products, offers real-time information and unifies the outlook of the manufacturer, seller and consumers alike. #QuiteMagical
What’s the end goal? A robust Supply Chain Planning Software helps meet customer needs in the shortest time and at the lowest cost possible. That’s where smart technologies play a crucial role. Supply chain management sets the strategy and directs daily logistical activities that happen in factories, warehouses, local shipping centers and other facilities.

For instance, predictive analytics is one of the most promising technologies in supply chain management. Whilst it’s been around for decades, only recently has it become mainstream and affordable through supply chain management solutions for small and medium enterprises to leverage it. The data collected from the past can be used to find patterns and make predictions, optimize inventory levels and reduce costs by reducing waste. Businesses can also leverage big data and predictive analysis to predict customer behavior and improve their supply chain’s performance.

Let’s look at Nike and its remarkable transformation from a traditional supplier to a supply chain ‘changemaker’. They achieved a significant reduction in lead times for orders, slashing it from 60 days to a mere 10 days. This remarkable feat was made possible by installing over a thousand automated machines at the supplier factories, revolutionizing various manufacturing processes and optimizing the logistical workflows. Additionally, Nike streamlined its footwear production methods, successfully cutting down production steps by 30% and decreasing labor by 50%!

Today, you can enhance your operational efficiency, yet you also need to track and improve logistics to provide immediate visibility into the inventory, shipments and supply chain operations. With real-time data, informed decision-making leads to a more streamlined and efficient supply chain process. This greatly helps optimize inventory, reduce downtime and streamline logistics – eventually driving customer growth and improving customer satisfaction enhancing precision decision-making in the logistics ecosystem. That’s how this tool is reshaping the future of logistics!

Supplying Our Chain Of Parting Thoughts

Scott Jennings, Informatica's chief strategist, said “Consumer preferences have changed forever, which will continue to send shockwaves up and down the supply chain. One day it’s out of stock, the next month a glut of inventory is on the books. To get ahead of these supply chain shocks and manage unforeseen black swan events, complete supply chain visibility with trusted data has become a modern mandate.”

Logistics today are a critical piece of supply chains because they manage and track peoples’ needs and hence, it is vital in understanding what to store, deliver and transfer. With the ever-increasing consumer demand, it’s important now more than ever to automate supply chains and pivot from traditional ways to create logistical opportunities.

To optimize operational efficiencies and sales growth, businesses should prioritize automation, maintain agility in their inventories and utilize data to a greater extent than ever before. By embracing these strategies, companies can leverage supply chain planning and stay ahead in the dynamic logistics landscape.

Till next time!

Frequently Asked Questions

How Does Supply Chain Management Differ From Logistics?

Supply Chain Management encompasses a broader spectrum than logistics, focusing on the entire flow of goods from the point of origin to the endpoint, including sourcing, manufacturing, transporting, storing and selling. Logistics, on the other hand, primarily deals with the physical movement and storage of goods within the supply chain.

Who Needs Supply Chain Planning Software?

Businesses of all sizes can benefit from Supply Chain Planning Software. While small businesses may require basic functionalities for inventory and order tracking, larger enterprises may need more complex features like supply chain optimization, data insights and real-time tracking.

How Can Supply Chain Planning Software Improve Logistics Operations?

Supply Chain Planning Software enhances logistics operations by automating processes, improving communication and collaboration, streamlining supply chain workflows, providing real-time information and offering security features like data collection and demand forecasting.

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