Top 3 BIG Trends That Will Define Future SCM And Logistics

The world of SCM and Logistics is changing fast and there are a few concepts or trends that logistics specialists and SC managers should know about. In this blog, I will inform about 3 trends that will define the future.

1. Circularity

Originally, Supply Chain Management (SCM) was a concept where raw materials A, B and C were sourced by company X and then converted into a product that would be sold to company Y. However, this model is conventional and is not applicable to the future anymore. Circularity, or sustainability, is going to be a major factor in SCM and Logistics and will define the way in which logistics is done. Circularity in SCM and Logistics means that not (only) raw materials are sources, but products and materials are reused and recycled. Another term for this process is reverse logistics, which means the flow of materials that comes back to the company from the direction of the final consumer so that it can be used again. It will help companies reduce transportation costs and emissions, create value to the customers and most importantly conserve resources. World leader in reverse logistics and a big example for me personally is IKEA, about which more can be read in this article.

2. Wearables

SCM and Logistics involve a lot of (real time) data that is collected, analyzed and used by tons of people at the same time in different companies across different countries. A future trend that will make this a lot easier and more accurate as well as more real-time is the upcoming of wearable technology. Employees need to make decisions with the most recent data they have and with the trend of “big” data, having just a little bit more recent data can make the difference between a good or bad decision. Using wearables to access the most recent data will make the decision process not only quicker, but also more cost-efficient, since employees will have time to do an extra job by the time they save on collecting data from a computer. Besides decision-making, also maintaining inventories and checking product demands is to become a lot easier with wearables. In addition, employers can monitor its employees’ heart rate and oxygen blood level to prevent heart attacks and other incidents on the work floor.

3. Artificial Intelligence (AI)

In the logistics sector, especially in warehousing, artificial intelligence is playing a big role, and it is about to become a lot bigger in the (near) future. Companies like FedEx, DHL and UPS are using automation and robots in their distribution centers to process and sort packages because they are easy to program, flexible in use and very cost-efficient. Check this article to learn more about how UPS uses AI. The use of artificial intelligence to make robots recognize certain objects and learn from past objects makes more employees unnecessary and increases the efficiency and therefore the speed of the process a lot more efficient. Also in business SC's, warehouses are equipped with robots that can retrieve a certain material quickly so that costs are reduced in terms of personnel, but also in terms of necessary warehousing space since robots require a lot less space than the ordinary wide paths in warehouses needed for fork lifts to move around

If you want to stay up-to-date on more trends and the changing world of SCM and Logistics, make sure you check my blog frequently!