Cloud-based Technology Empowers Supply Chains

The digital supply chain has now become the new normal, with technology supporting every step in logistics, from sourcing to delivery. Although cloud-based technology has been around for two decades now, supply chain organizations are still quite hesitant to make the traditional-to-tech switch. However, they need to start the migration given the ease of tracking a product through its entire life cycle through cloud computing. Moreover, It is the only solution where the disrupted supply chain ecosystem can be completely automated with minimal use of resources.

Imagine a seamlessly automated system to manage all of the supply chains through a single platform, while easily tracking inventory inflow and outflow. Cloud-based Technology (CBT) empowers the supply chain by providing this much-desired strategic approach for inventory deployment. Geoanalytics has eased the monitoring of the delivery networks and allowed quick prioritizing of the slow-moving shipments, remotely, from any location.

CBT has streamlined good visibility, agility, and resilience across the supply chain. It has adjusted well to the needs and changes in supply and demand, in real-time.

While traditional methods are more transactional and do not offer real-time accuracy, CBT helps companies enter the era of Supply Chain 4.0. The pros of CBT have helped in future-proofing the major elements of supply chains by overhauling integration, operations, purchasing, and distribution. Its influence can be measured through the benefits it has delivered after being integrated into supply chain management:

-   Agility of operations

CBT has allowed faster deployment of linear supply chain management solutions, which has created a faster return on investment. There are no more lags in IT project line-ups. With cloud hosting, processes can work seamlessly across the world, sans glitches that would otherwise lead to delays in shipments. It is the only way to keep up with the constantly changing requirements of the customer.

-   Cost-effectiveness and efficacy

CBT has added a wider range of features and pricing benefits for its users in supply chain management. Companies can now cut costs and expand their customer base with the support of the cloud. A full-scale data storage is now a dream to maintain as the cloud offers solutions to disperse the expenses across various users in small or large corporations. Moreover, it generates market opportunities for everyone regardless of the organization’s size.

-   Single source of truth

The real-time SaaS-based (Software as a Service) solutions, that can be accessed and easily shared throughout the network, have established quicker connectivity that takes the obsolete supply chain and converts it into an efficient supply chain network. The single-point origin allows easy transparency and traceability in any supply chain. Supply chains have become more dynamic, safe, and interactive to create end-to-end, in-sync functionality.

-   Scalability and flexibility

With the cloud, bottlenecks in a supply chain can be easily predicted. The supply network can be scaled to reach different suppliers and partners as and when the requirement arises. This has created flexibility with the usage-based model, network, and capacity which can adapt to the market as per its demands and conditions. This has resulted in maximum efficiency of the process through the integration of proper technology. Configuration of all the channels involves a lesser number of processes for organizations and hence supply chain can focus on individualized products and services.

-   The Future of Business

Supply chain organizations have successfully managed and upgraded their own supply chain processes over the years.  By adopting CBT, owners can now access supply chain data from anywhere, anytime. Businesses of all sizes can leverage this technology to reap benefits and upgrade to a revamped cloud management system.

CBT has forged faster planning and execution capabilities (supported by advanced analytics and in-memory computing), resulting in a faster turnaround and the use of minimal resources.

Equipped with a host of pros, there is no reason why logistics players should be skeptical about transitioning from traditional methods to cloud computing.

As 4.5PL solutions providers, H&S offers its complete infrastructure of top-notch IT support to its clients. With a hybrid system that combines the best of what both 3PL and 4PL have to offer. Our expertise in Supply Chain Management comes from the team’s 100+ years of accumulated experience in this practice.We believe that improvement in supply chain management can only be created by amalgamating the business processes and advanced technological methods like cloud-based technology to make our operations more advanced and aligned with the volatility of the market.

Evolution of Technology in the Supply Chain

With the advent of Industry 4.0, traditional supply chain methods are rapidly becoming obsolete. Digitization and integration are now the cornerstones of the entire supply chain process, which is best known as Supply Chain 4.0.  The The current times demand efficiency, flexibility, transparency, effective communication, and collaboration for an increasingly enhanced supply chain ecosystem.

Companies need to be cognizant of the fact that supply chain management drives their value chain processes. And a supply chain process carries a lot of burden in terms of faster turnaround time, robust inventories, and shorter product life cycles.  

By integrating the right technology into their supply chain ecosystem, companies can gain that much-needed head start, which allows them to:

●     Act faster and smarter than their competitors

●     Improve efficiency to attract more business

●     Improve risk prediction and management

●     Realize cost-saving and optimize working capital

●     Rationalize the supply base

But how does one ensure this in unprecedented times that are beyond our control?

The present milieu calls for improved methodologies to streamline processes. Be prepared for disruptions caused in your supply chain process due to unexpected events. SMEs can be quite vulnerable to sudden changes, but the intervention of the right technology can help.

Here are five technology trends in Supply Chain Management to accelerate business outcomes:

Simulation Models, such as "digital twins," utilize an exact digital replica of the ongoing physical supply chain in an organization. This digital model helps companies gauge the different scenarios of disruptions to the business, helping decision-makers brace themselves better for crisis management if any.

Real-time Tracking is a disciplined approach that raises a red flag much faster when a disruption occurs. Real-time tracking helps resolve small and big issues on a day-to-day basis, by helping track inventory and product-related bottlenecks better.

Artificial Intelligence, when given the data to do so, can predict complex occurrences in the future. AI and machine learning are used to recognize product demand, which eases the supply chain management process as a whole. The smoother the supply chain operates, the lesser a disruption will impact it.

Blockchain Technology ensures all transactions are recorded in the form of digital archives. These records ensure that anyone within the system has access to this consolidated data at any time. Most importantly, these records help companies track the exact location and cause of a disruption.  

Automation and Digitization are harbingers of change in the ways in which data is gathered and employed. Shippers and 3PLs (party logistics) are paving the way to advanced technologies to initiate faster and cost-efficient services which create improved visibility and safety.

In the current marketplace, customers at every level are well-informed and have their own set of requirements and expectations. Supply chain functions rely mostly on the abilities of the involved parties to get access to vast amounts of data in real-time. Therefore, shippers and 3PLs are stepping away from core transactions towards more integrated and collaborative relationships.

Innovative solutions in the logistics space are all about effectively increasing order fulfillment while tracking shipping delays, linearizing supply chains, and cutting down unnecessary overhead costs. While those benefits are good on their own, it is refreshing to see 4PL providing benefits beyond their planned range. 

As 4.5PL solutions providers, H&S offers its complete infrastructure of warehouses and top-of-the-class technology (IT support) to its clients. Our clients receive a future-ready approach when they choose our services. 4.5PL is a hybrid system that combines the best of what both 3PL and 4PL have to offer.  In essence, it combines the technical expertise that a 4PL partner provides, along with the operational excellence that a 3PL partner brings to the table. We offer positive outcomes for all sides of the logistics’ disruptive demands. Our processes provide detailed demand forecasting and planning. We believe in an integrated approach to supply chain management to improve business processes and transform our operations.

Rural to Urban Logistics – the role and types of connectivity in improving logistics

Connectivity and logistics go hand in hand — the latter cannot exist without the former. While it may seem that logistics involves a simple, linear process, this couldn’t be further from the truth. Suppliers and distributors have a tiered structure that goes from the supplier of raw materials to the end user buying or receiving the product. And when this journey involves both rural and urban areas, the role of connectivity becomes all the more important — considering that India’s rural areas form the backbone of our agricultural economy.

Despite the sector’s major economic significance, the rural agricultural supply chain suffers from multiple inefficiencies leading to heavy losses. Let’s delve deeper to understand the situation, the challenges, and the types of connectivity that can remedy them.

Simply put, grain, vegetables, and fruit must reach urban India in a timely and efficient manner. This involves warehousing, cold storage, and of course, transportation. In this context, logistics, comprising transformation infrastructure and technological support become essential. However, several challenges stand in the way. These include:

• A significant gap between the quantity of agricultural produce which needs storage and its available scientific management,

• A major demand-supply mismatch

• Poor warehousing capacity that has not kept pace with production and procurement increases

• Lack of organized Logistics ecosystem supported by technology
  

  Here’s a look at the different types of connectivity and the measures that can be implemented to address these gaps and ensure a smooth rural to urban supply chain:
  

• Building a state-of-the-art rural distribution ecosystem: This should be designed to give the agricultural and rural artisan community real-time access to urban markets and marginal costs that will help them eliminate wastage and optimize services.
  

• Developing physical infrastructure: Digital connectivity can help boost physical connectivity. While a robust road construction program that connects rural and urban areas is non-negotiable, digital connectivity can have a major impact on the performance of these routes. This is because of the real-time data that allows for accommodation of unexpected disruptions and the changing capacity of the  competitive logistics industry.
  
  Transport connections too need to be strengthened. The need of the hour is a rural logistics connectivity ecosystem from small towns and villages to the district headquarters through daily route vehicles that can cover hundreds of kilometers through a hub and spoke model. This will bring in efficiency into distribution management as well as cost optimization through scalability.
  
  Other technology-driven solutions to drive different types of connectivity include:

•  Connecting AI to humans: Contrary to popular belief, humans are not obsolete. The need of the hour is for human capital to work together with Artificial Intelligence, that has the ability to predict demand, risks, and supply availability in real time. Organizations that pick one over the other are likely to suffer in the long run, as operations scale and demand across the country continues to grow.
  

• Implementing blockchain: Blockchain technology is one of the most effective ways to ensure visibility and connectedness between different elements of the supply chain. Real-time updates result in higher accuracy of inventory count and constant updates. This becomes especially important when delivering goods to remote areas, which may involve significant roadblocks or delays.

• Implementing a B2B integration platform: A supply chain is a connection of stakeholders potentially spread across the world. This requires a robust B2B platform that connects various cloud infrastructuresand works with processesand applications that span boundaries.

  Improvements in logistical capabilities, together with digital connectivity can bridge the rural-urban divide. An optimal mix of digital and physical connectivity is key to improving supply chain processes and ensuring the health of rural industries.
  
  With H&S as your partner, you can focus on providing the best products, while we work on building and executing the optimal supply chain model. Our future-ready solutions help you improve service performance, minimize costs, deliver superior customer experiences —and scale your business to new heights.

Rural to Urban Logistics: The Key to Connectivity

The growth of the logistics industry, in particular the supply chain management, is one of the main aspects of India’s development. Unfortunately, attention has mostly been skewed in favor of urban logistics over rural logistics. This can be attributed to a number of factors including population density, inequality of wealth, and the availability and quality of services such as communication, healthcare, and education

Yet, the juxtaposition of rapid globalization with the traditional mindset that still prevails in a huge part of the country, has created a unique customer base. Apart from that, there has been a rise in international and domestic demand for agricultural produce and traditional handicrafts. This has helped raise awareness about the importance of rural logistics.  

The advantages of building an efficient supply chain across the country would be numerous, from boosting connectivity to reducing poverty in rural areas.  

In this blog, we take a look at the issues faced by urban and rural logistics, potential improvements to the sector, and the advantages of developing rural to urban logistics.  

Urban and Rural Logistics: An Overview of the Market

The logistics industry has always been a vital link between urban and rural areas. Over 65% of India’s population, a staggering 890 million people, lives in rural India. The two main industries that compose the Indian rural market are the agricultural sector and the artisans industry.

Indian rural industries:

The agricultural sector in India is currently valued at Rs. 63,506 billion. Agriculture plays a vital role in the economy, from being the main source of employment to over 60% of the population to contributing to about 17% to the total GDP.

The second largest rural industry is handicrafts. It is a distinctive segment of the Indian economy, providing employment to over six million artisans. Traditional Indian handicrafts are coveted across the world, with the US and Europe receiving over 65% of the handicraft exports.

With the mechanization of processes, farmer subsidies, global demand, and government initiatives, the sectors should be booming. Yet, the rural supply chain suffers from multiple inefficiencies that lead to a supply-demand gap:

Infrastructure:

Several parts of the country remain inaccessible due to an undeveloped road network. This, along with the lack of necessary infrastructure between factories, storage areas, and delivery points, make it extremely difficult to plan out efficient routes or regular transportation. This increases distribution time, costs, and wastage of produce.

Organizational relationships:

It is becoming the norm to partner with vendors and carriers to ensure efficiency of the supply chain. However, in India, the markets are informal and disorganized, not connected to national or international markets. This leads to lack of awareness and knowledge about the details of the products, causing stagnation of the industries.

Middle-men:

Most rural dwellers in India are forced to depend on middle-men due to lack of market linkages. The common practice of middle-men is to buy products at an extremely low rate and resell them at multiples of the price, causing the farmers and artisans to invariably lose out.

Modern technology and communication:

Current trends in logistics, such as real-time tracking and blockchain technology, have not yet entered several parts of rural India. Even regular internet and connectivity is patchy, causing a gap between what should happen and what actually takes place.  

Improving Rural To Urban Logistics

In India, coordinated development between urban and rural logistics could be the key to removing the economic and social chasm that exists between the areas, achieving a reasonable allocation of resources, promoting responsible urbanization, and integrating urban-rural development.

Some current and potential ways of improving rural to urban logistics include:

Leveraging underutilized Assets:

Leveraging underutilized assets such as rural stores, department stores, and boutiques to develop a last-mile, entrepreneurial-led network.

Reverse logistics:

Gridding the country into equal parts and creating optimal routes for connecting the areas under each grid. Small and medium scale industries, such as farmers and artisans, are largely disconnected to the mainline markets. Current technology and ecommerce portals can be utilized to immediately bridge the gap between rural sectors and the consumers at a fair cost to all involved.

Rural distribution ecosystem:

Creation of a rural distribution ecosystem comprising a technology platform, daily route vehicles, and strong entrepreneur network. This will help improve access between rural and urban areas, including last-mile connectivity, introduce modern technology and infrastructure to the current supply chain, and assist in upskilling and providing employment to the rural areas.

Advantages of improving Rural to Urban Logistics

Millions of people stand to benefit from improving rural to urban logistics. Some of the main benefits include:

Reducing waste:

According to reports, the losses due to agricultural waste is Rs. 92, 651 crores. This staggering amount can be reduced exponentially with just a bit of effort.

Increasing rural tourism:

India is a unique country in terms of variety, culture, and biodiversity. Improving logistics will result in opening out the areas to tourism and increase employment opportunities. 

Improving healthcare and resilience against natural disasters:

Currently several parts of India are still inaccessible, which poses a huge problem in terms of healthcare and humanitarian aid. Developing rural infrastructure will allow improvement in health supply chains and transportation of basic goods during a disaster, potentially saving millions of lives.

Increasing education and overall satisfaction:

Providing education and upskilling opportunities to farmers and artisans will allow them to make informed decisions about their products and be aware of their rights. Improving rural logistics will allow producers to reap what they sow, increasing overall satisfaction

At H&S, our main aim is making a difference in the livelihoods of workers and micro-entrepreneurs across rural India through introducing modern technology in the supply chain and providing upskilling opportunities. We believe that everyone must be appreciated and properly compensated for their efforts in order for real development to occur. 

Supply Chain Dynamics in the Indian Retail Industry

India is a land where ancient culture meets modern technology — and the country’s retail sector is a reflection of that. The two main retail formats are modern/organized retail and traditional/unorganized retail. The former is defined as large-scale chain stores or e-stores that apply modern management techniques and principles to business, while traditional retail includes local department stores, street vendors, and markets that follow informal business practices.

Retail supply chain management, however, is essential to both these formats. It is the process of delivering goods to consumers as fast as possible, preferably without paying an outrageous amount. It must be optimized to be as efficient and affordable as can be managed.

In this blog, we aim to give you an insight into supply chain dynamics in the Indian retail industry, with an emphasis on challenges and complications faced by retailers, the role of technology in logistics, and the importance of collaboration.

What are the Main Challenges and Complications in the Retail Industry?

India is witnessing continuously changing lifestyles, increasing income, and rapid urbanization, resulting in insatiable customer demand. Although several advantages come with having access to such an enormous market, the retail industry does face its challenges.

Increasing competition

It’s a dog-eat-dog industry, and the massive increase in competition between similar or identical products and brands attests to that. To retain profitability and resilience, businesses are relentlessly trying to find cheaper goods and services, which often compromise quality.

Large corporations vs. smaller retailers
Another challenge is the undeniable advantage larger corporations have over smaller retailers, solely due to access to a huge amount of funds. This is unfortunate as although our beloved local mom-and-pop stores constitute the major portion of the Indian market, they are unable to maintain large inventories, use proper warehouses, or ensure quick delivery timings. This frequently results in larger companies swooping in and putting the local stores out of business entirely.

Network and transportation issues
Poor road network facilities and unavailability of regular transportation to remote areas also adversely affect both the retailers and customers. Since over 75% of people in India live outside cities and depend almost solely upon the small general retailers, both supply and demand remain unsatisfied.

Communication complications
Although communication services have improved tremendously over the last few years, a lack of information and awareness still exists in certain areas. This can lead to the selling of expired products, unhygienic storage facilities, and ineffective delivery and return systems, all symptoms of a failed supply chain. 

The Effect of Modern Technology on Logistics

We are in the midst of the tech era, with new innovations appearing almost daily. One industry that has been transformed by the storm of new technology is logistics. In a short amount of time, it has helped streamline and improve daily business processes and supply chain management.

The rise of 3PL and 4PL
One of the main benefits of technology in logistics is that it has improved efficiency and transparency by leaps and bounds. Third-party logistics providers (3PLs) and fourth-party logistics (4PLs) providers use wireless technologies and cloud computing to automate systems and improve accuracy. The use of Customer Relationship Management (CRM) allows 3PLs and 4PLs to streamline their client supply chain activity and improve client relations.

Technology in shipping
Technology in shipping comes in the form of radio-frequency identification (RFID) tags. They can be tacked onto inventory, allowing it to be traced through the entire process. Blockchain technology, a decentralized public ledger system that stores transactional records, documents all changes to a record in real-time, making it difficult to hack or cheat. 

Reduction of human error
Technology provides nearly impeccable data-capture which improves processes, identifies faster routes, pinpoints bottlenecks and mistakes, and provides analysis on areas of improvement. It reduces labor costs, manual errors, and streamlines data-capture and management. 

Having access to real-time information across the entire supply chain has been a game-changer, allowing companies to track their current operations and forecast business expectations.

Collaboration in Logistics: Building a Future Together
COVID-19 has shown us how vulnerable businesses are to disruptions in the supply chain. Hence, collaboration has become more important than ever before. It goes hand-in-hand with effective communication, ensuring efficiency and optimization of a supply chain.

Building an agile network
Collaborations include improving communication between and working with both internal stakeholders as well as external organizations. Businesses have realized that building agile networks and channels will allow them to navigate any sudden changes in their operations and environment.

An increasing number of organizations are reviewing their strategies and process, and have realized it is vital to build systems and teams that are flexible and able to adapt to a different world.

Sustainability through collaboration
With the rise in awareness and the need for sustainable and ethically-sourced products, businesses are also engaging with companies and individuals that help them reduce their impact on the environment.

Improving communication
In addition, collaboration is essential for strategic workforce management, helping employee productivity and boost morale. It helps personnel to feel more connected to the entire process, which increases the feeling of fulfilment. All this boils down to better customer service and increased satisfaction.

Suffice to say, for all businesses to stay up and running, it all comes down to how effective their supply chain management is. Government assistance, incorporation of modern technology, and continuing innovation are vital to successfully maintaining the unique Indian retail sector.

Improving Your Supply Chain Management System

COVID-19 has affected all aspects of businesses, with global supply chain processes being among the worst hit. However, even before the pandemic, increased globalization, shorter lead times, intensification of competition, and changing customer expectations required that businesses constantly evolve and optimize their supply chain management.  

With the current uncertain situation, people have retreated into isolation, offices and warehouses have shut down, and international borders are closed. This has forced business owners to get creative and adapt to a completely different world, with one of the biggest changes being a massive rise in online shopping. Any inefficiencies in the supply chain process can create issues that have a ripple effect throughout an organization — something that many businesses just cannot afford, especially at the moment.  

Leaders have therefore identified key drivers of success that can help implement best practices in their supply chain management. Understanding each aspect of a supply chain ensures that managers are able to identify and remedy any issues as early as possible. Increasing transparency and visibility, improving communication, and quality control are among the top areas of focus for supply chain executives.  

Transparency and Visibility:

 Supply chain transparency typically refers to the process of disclosing information to customers, consumers, regulatory bodies, and trading partners. Visibility focuses on sharing data within the supply chain to increase efficiency.

Better visibility and transparency help with effective collaboration, swift resolution of issues, and planning and managing orders, shipments, inventory, and transportation. They also help provide companies and customers with the confidence that their goods and services are genuine, traceable, compliant with regulations, ethically sourced, and are up to the company standards.

Increasing transparency and visibility requires an innovative multipronged approach that includes usage of real-time networks for data management. It is vital that companies recognize the importance and benefits of supply chain transparency and visibility in building trust in the brand, increasing efficiency, enhancing customer experience, and reducing risks.

Communication:

Communication refers to the open and proper exchange of ideas, opinions, and data between both internal and external stakeholders. As simple as it sounds, it is actually one of the most difficult areas to address and improve.

Communication is important as it brings together people with firsthand experience of different points of the process. Improving communication refers to prioritizing relationships with employees, stakeholders, and suppliers. It is essential to regularly meet and discuss current processes, trends, and models to retain healthy relationships, give and receive constructive feedback, and drive collaboration.

Quality Control: 

Quality control refers to ongoing quality inspections during sourcing of raw materials and manufacturing processes, and quality checks before delivery to the customer. It is the responsibility of the purchasing department to ensure that all goods and services are compliant with local regulations and are of the correct specifications.

The aspects of quality control include scrutinizing the physical description, dimensional measurements, chemical composition, performance specifications, industrial standards, and brand name. 

Each part of the process must be carefully inspected to ensure that all relevant information is shared, such as physical attributes of the components, details of chemical specifications, ability of the part to carry out the role it is meant to, and the reliability of the sources.

The quality of the raw materials, goods, and services that are used by a company makes a difference to the finished products. By carrying out efficient and constant quality control, you ensure consumer satisfaction, repeat customers, and reduction of waste.

At H&S, we understand that the supply chain of today looks significantly different from those of the not-too-distant past. Even the most experienced and adept managers must ensure that they dedicate time to reworking strategies to ensure company growth and evolution of their business.

When it comes to increasing supply chain efficiency, we know that spending a huge amount of money isn’t always necessary to make an impactful change. 

Visit <website> to learn more about how we are constantly adapting to ensure that our customers receive only the best quality of goods and services.

Best practices of demand planning in any supply chain service

Demand planning means predicting the demand for products so that there is a steady supply of goods to customers. Shortages in the market would mean revenue losses for suppliers and surpluses may lead to plummeting prices, and adds to inventory management cost. The need to strike a balance between the two makes demand planning an essential feature of supply chain management.

A wide variety of factors can affect demand. Most companies faced major supply chain disruptions during the COVID 19 pandemic owing to the ‘bull-whip effect’ — where small errors get magnified at every stage further up in the supply chain. At such times, demand planning helps a company to tailor its capacity and better tackle demand variations.

Here are some aspects of demand planning that are known to have a major impact on supply chain management.

 Product portfolio management

Taking a strategic view of the company’s entire product catalog forms the crux of product portfolio management. In many cases, product lines are interdependent and the introduction of new products could influence the demand for other products. So, it becomes important to understand the overall product mix to allocate resources optimally and maximize market share.

 Statistical forecasting

Data is key to demand planning. Past data is used as the basis for forecasting future demand or trends. Supply chains generate big data that could turn into veritable insights. However, one must be mindful of the limitations of certain statistical models and also account for outliers and assumptions. A statistical forecast, ignorant of statistical errors, would be a futile exercise.

 Consumption trends

A company’s historical data reveals consumption trends. Sales patterns are influenced by several factors such as seasonal variations, competition, socio-cultural factors, technological changes, and politico-economic environment. Therefore, demand planning ought to account for a variety of trends.

 Events and promotions

Marketing events substantially influence demand. Discounts, promotions, campaigns all add to brand visibility, and could lead to considerable changes in demand for products. Hence, a demand plan must go through timely improvisations to be able to cushion sudden surge in demand from events and promotions. 

 Demand planning isn’t simply a task, but a process in itself. It involves multiple steps and is reliant on right information, and tools. It is a nuanced process attempting to strike a balance between surplus and deficit, within the framework of organizational goals. Here are some of the best practices for demand planning.

 Apply the right software

There are a plethora of options when it comes to resource planning softwares for companies to choose from. It can be tricky to choose the right Enterprise Resource Planning (ERP) software that can handle nuanced forecasting along with data collection.

 Gather and prepare data

Real-time supply chain data is crucial to demand forecasting. Metric reports and data mining are efficient ways to identify potential choke points and areas for improvement.

 Well-defined demand planning models

A well-defined process of demand planning is imperative to avoid confusions in supply chain management. A methodical approach to demand planning enables seamless functioning and operations within an organization.

 Critical thinking to hone system generated data analysis

There is more to demand planning than merely collecting data and running it through softwares to determine trends. Accuracy is key, which requires one to go beyond analytics to interpretations. As the Institute of Business Forecasting (IBF) asserts, data is a language and the demand planner the storyteller. Interpreting data is vital to devise solutions for business problems.

 Monitoring and analysing effectiveness

Ideally, pilot projects are the best ways to test the effectiveness of plans.

Reducing errors and biases, and improving processes require constant monitoring and a detailed analysis of previous implementations.

 At H&S Supply Chain Services Private Limited, we use HSConnect, a set of proprietary algorithmic logics to enable efficient and effective route-kitting and freight optimization, and Business Intelligence dashboards to give our clients real-time visibility of operations. Our processes enable detailed demand forecasting and planning. We believe in an integrated approach to supply chain management.

Top technologies transforming the supply chain industry

Every industry adopts new technology from time to time. Factors such as globalization and evolving consumer demands fuel the need to upgrade constantly. The supply chain industry too has been leveraging established digital ecosystems and finding new ways to stay relevant in a hypercompetitive market. Let’s discuss some of the technological advancements that supply chain partners have embraced to up their game.  

1.AI for better data-driven insights and less human error

Today, everyone is looking for data-driven insights. By harnessing a combination of technologies such as AI and machine learning, supply chain companies can automate their warehouse operations, focus on quick deliveries, and manage inventory more efficiently. This leads to better customer experience and increased sales.

With little human intervention, AI with its suite of strong algorithms can extract data and insights at a granular level. This reduces human error while tracking inventory data. AI is the game changer in delivering business value for the supply chain industry.  

2.Predictive analytics for improved decision-making

Like AI, managing data and driving better insights is an objective for predictive analytics too. It looks at the present stream of incoming data, arranges it into labeled data structures, and then empowers businesses to take advantage of the forthcoming opportunities. The insights can improve decision-making in supply chain management by increasing visibility and flexibility. Methods that earlier relied on human decisions can be powered with prognostic and predictive analytics as it reduces scope for errors.  

3.IoT for in-time manufacturing and on-time delivery

The use of IoT is rising as a part of comprehensive end-to-end supply chain procedure. This technology helps to support manufacturing operations and control production assets, fleet management, and freight monitoring. IoT uses location tracking to deliver the right knowledge to suppliers to facilitate just-in-time manufacturing and on-time delivery. For example, if a shipment of refrigerated goods is at risk for equipment failure, suppliers armed with knowledge can automatically reroute the delivery to a closer distribution center or proactively dispatch a repair crew to prevent spoilage. It must be kept in mind that advanced technology of IoT comes with risks of cyberthreats and physical dangers, such as oil rigs, or manufacturing line explosions, and that’s why the aerospace and defense industry avoids the use of IoT.   

4.Blockchain for tracking business transactions

Blockchain technology contains features such as smart agreements, or easy traceability as a part of the vastly distributed supply chain management system. It is the primary technology that can bring the factor of immutability –– nothing can ever be erased. It is mostly used as a digital ledger technology. But other than that, it also has the ability to do a bunch of things that can prove to ease the process. For example, blockchain can track the movement of gold and diamonds from mines to foundries, retail stores, and customers by creating a digital record that contains a unique ID, mentioning color, carat, and certificate number. While primarily associated with cryptocurrencies, blockchain also ranks high on the list of technologies poised to bring improved visibility and transparency to supply chain processes.  

5.Immersive tech for enhanced customer experience and employee engagement

Immersive technology has the potential to transform the supply chain industry. It is used as an interaction model to amplify human capabilities, such as onboarding new workers through immersive on-the-job training. This advanced mechanism, comprising augmented reality (AR) and virtual reality (VR), is also used to boost the customer experience. It includes better repair and maintenance abilities in engineering and warehouse management systems. This innovative method also helps clients conceptualise their products better.  

These advanced mechanics are giving a makeover to supply chain management. Companies are adapting to advanced technologies with the hope of revolutionizing the ecosystem. And experts have already predicted that this transition will result in increased profitability.  

At H&S, we balance sustainability and profitability by building future-ready 4.5PL solutions. We work with innovative technologies such as electric vehicles, blockchain, AI, etc to create a digital supply chain. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.

Top 10 Supply Chain Risk Management Strategies

Supply chains are the backbone of businesses. Effective management involves the flow of goods, right from storage to customers, and holds the key to revenue growth. Therefore, it is essential for businesses to prepare for any risks -- such as natural disasters, acts of war, theft, data breaches, or supplier bankruptcy -- that may disrupt their supply chains. Let’s look at some innovative tools that are effective in mitigating risks.

●     BitSight Discover (helps businesses map their digital supply chains)

●     Riskpulse (provides environmental risk management solutions)

●     IBM AppScan (delivers code verification solutions)

Businesses must develop contingency plans to cushion the impact that such disruptions could have on the bottom line. We are listing the top 10 tips to help companies do just that.

1. Evaluate and identify current risks: It is important to take a critical look at the business and identify some possible high-risk events. Because the first step to being prepared is being aware of possible dangers.

2. Prioritize by probability and impact: It is impossible to cover every scenario. That’s why it’s crucial to prioritize potential risks by predicting their impact on finances and brand image, probability of occurrence, or both. Once this has been prioritized, contingency plans can be worked on accordingly.

3. Ensure supplier quality: Suppliers can hugely impact a company’s reputation. In addition to ensuring the quality of supplier goods, be aware of the source of materials and communication with all stakeholders. It is important to ensure long-term supplier viability to avoid any future complaints regarding quality. 

4. Diversify suppliers: Depending on a single supplier is not advisable. It is wiser to source from low-cost locations around the world and establish reliable secondary suppliers in different regions to minimize the risk of delays. 

5. Be aware of suppliers’ risks: It is crucial to be aware of all types of risks the suppliers face -- be it compliance or political/economic conditions that may impact their ability to serve. 

6. Include partners in risk planning: It is important to work with suppliers, transportation carriers, data management centers, and customers to create a disaster recovery and business continuity plan that aligns with the supply chain.

7. Purchase cargo insurance: Insurance is mandatory to protect in-transit shipments as well as warehoused goods against loss or damage anywhere in the world, whichever carrier or mode of transportation. 

8. Be transparent with partners: Ensure consistent and clear two-way communication among stakeholders, especially around issues such as increased sales projections or major changes in the product. 

9. Consider trade credit insurance: Slow-paying or no-paying customers can impact working capital. Trade credit insurance can help protect the bottom line, free up some capital, and help secure better financing options from lenders. 

10. Review risks periodically: In order to avoid risks as much as possible, review risk scenarios regularly and identify changes in the supply chain. 

It is important to be a step ahead and have a contingency plan. These ten strategies can help businesses tide over crises and mitigate unforeseen disruptions. What’s more, technology has made it easier to follow these processes and model key risk scenarios. 

At H&S, we balance sustainability and profitability by building future-ready 4.PL solutions. We work with innovative technologies such as electric vehicles, blockchain, and AI  to create a digital supply chain. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.  

Top five industries that bank on supply chain

The supply chain industry caters to every business that runs the wheel of economy. Every industry varies in nature and operation, but they have one thing in common -- they all need the right supply chain partner who can ease their business and help them run it smoothly with maximum visibility and flexibility.

Here are the top five industries that are heavily dependent on their supply chain partners.

1. FMCG: Fast-moving consumer goods (FMCG) form one of the largest industries worldwide. From our morning showers to our meals and well-being, the world revolves around the FMCG industry, which is often disrupted by ever-changing consumer demands. It always has to produce a wider range of goods in high volumes and quickly. In developing markets people spend more on consumer goods, raising the need for an expanded supply chain that can provide flexibility and visibility.

For FMCG, the right supply chain partner means:

●     Flexible solutions that can cater to the quick-changing consumer demands and preferences

●     Smaller shipments that are more direct and focused on quicker deliveries

●     Data-driven optimization through real-time visibility and cloud-based solutions

●     End-to-end visibility facilitating the decision-making process.

2. Consumer Durables: Highly durable goods such as refrigerators or washing machines usually work for five or more years, so durable goods are typically characterized by long periods between successive purchases. Many durable goods also have a limited shelf-life due to advances in technology and ever-changing customer tastes. There is an opportunity for companies to use supply chain management software and anticipate potential market changes across multiple time horizons in order to mitigate risks and embrace opportunities.

Risks and opportunities must be evaluated from a volumetric standpoint, as well as from their financial impact on the business. Supply chain partners can support durable goods supply chains by becoming more responsive, adding visibility and collaboration, improving forecasting, managing complexity and uncertainty.

It is vital that supply chain partners for durable goods companies use software to make effective planning and optimization decisions. They must also balance ease of use and advanced functionality, in two key ways:

●     Capturing, verifying and combining information to enable rich analysis, decision making and rapid response to planned and unplanned events

●     Developing robust integrated business planning capabilities supported by a comprehensive supply chain planning and optimization platform to:
-  Reduce cycle and response times
- Maximize resource utilization
-  Improve the effectiveness of the extended organization.

3. Automobile: The automotive industry’s global nature makes it prone to external factors such as politics, economy, environment, and marketplace. An effective supply chain management aids the automobile industry by introducing key metrics such as supplier on-time delivery, supplier shipment information accuracy, and supplier ASN (After Ship Notice) compliance. The right supply chain partner introduces effective strategies such as:

●     Extensive risk assessment and prioritization exercise 

●     Contingency and risk mitigation plan that involves backup manufacturing, alternative logistics, and even relocating some operations to different countries to take advantage of tariffs or trade deals

●     Automobile marketplace analysis to understand changing consumer demands

4. E-commerce: Business efficiency at all operational levels is critical for the success of e-commerce. Supply chain management is an essential component of this industry, focusing on procurement of raw material, manufacturing, and distribution of the right products at the right time. An efficient supply chain accelerates the e-commerce process with:

●     Effective and optimized inventory management, reducing operational costs and risks

●     Reverse logistics to enable better movement of goods from destination to origin 

●     Suitable inventory infrastructure for effective storage and visibility of goods

5. Retail: What differentiates retail from the other industries is the sheer volume of product movement. The retail supply chain must be monitored closely as goods are always on the move and the cycle time is less. A supply chain partner for retail must take into account the following for seamless management:

●     Effective storage strategy to reduce space and improve profitability

●     Faster movement of supplies by optimizing the creation of pick-up and inbound routes

●     Evaluation of customer demand patterns by enabling real-time visibility of inventory

 A supply chain partner can ensure smooth and efficient operations by reducing costs and delivering value to your customers. Choose the one with the right strategies to enable your organisation to go from strength to strength.

 At H&S, we have effective methods to manage the supply chain for every industry. We balance sustainability and profitability by building future-ready 4.5PL solutions. We work with innovative technologies such as electric vehicles, blockchain, and AI to create a digital supply chain to cater to tier 2,3,and 4 cities. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.