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Preparing for 2016’s Future Supply Chain Model

As the new year approaches, manufacturers are seeing a number of challenges that supply chains will face in 2016. Supply chains are undergoing many changes that involve technological advancements and the adaptation to wavering economies.

With these technological advancements, the future supply chain will be faced with challenges, as well as opportunities for a more effective solution. Here are the following changes and solutions for preparing for 2016’s future supply chain.

RFID Technology for Improving Consumer Experience

We are already seeing global manufacturers like General Mills, Cisco, and Bosch using radio-frequency identification technology to get real-time insight on inventory. This real-time detection will help manufacturers see when supplies are running low or identify theft.

Using electronic devices such as mobile payment, electronic labeling, or in-store kiosks are examples of technological advancements used to enhance shopper interaction and in-store logistics.

The RFID technology is overall a great way for supply chains to add value to the consumer and reduce business costs.

Collaborate with Supply Chains to Reduce Physical Footprint

Shared transportation, shared warehouse, and shared infrastructure may just be the best solution for reducing the overall physical footprint. Manufacturers under scrutiny for energy consumption and CO2 emissions will see that collaborating with other supply chains will greatly reduce their carbon footprint.

In fact, we are already seeing shared transportation services such as on-demand trucking companies working to decongest traffic and reduce pollution.

Additionally, sharing infrastructures provides a solution for reducing environmental impact and sustainable energy efficiency. The adoption of “green” buildings, which use 25% to 30% less energy than conventional buildings, lowers consumption of key resources such as energy, water, land and materials.

New Models for Managing Demand Fluctuation

Handling multiple customer demands will require a new model for improved replenishment and stock levels that go beyond the traditional approach. These new models will include a set schedule for promotion and introduction of products to align with supply and demand volumes. Moreover, collaboration is necessary for monitoring and executing joint supply/demand visibility on consumer behavior using new procurement systems.

Overall, the trends of future supply chains are incorporating the Internet of Things and technology for 2016. The MEP Supply Chain Optimization program is here to help your organization increase alignment, visibility, and collaboration using the latest manufacturing trends.Contact us today to find out more about our Supply Chain Optimization program.

Related Articles:

Environmental Sustainability Pays Off

Four Supply Chain Trends to Watch in 2016

Robots: Making Manufacturing Safer, Faster, and Better for the U.S. Economy

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