Top 5 Supply Chain Challenges in 2020 and Beyond

May 5, 2020


Glenn Jones, GVP Products, Blume Global identifies the unique challenges supply chain leaders and professionals need to address now, in order to improve operations and ensure future success.

Change is constant in the supply chain industry. From continuously evolving best-in-class sustainability practices to anticipating driver capacity, planning continues to be an obstacle for many supply chain professionals.

Here are the top 5 challenges supply chain professionals currently face and the actions companies can take to improve supply chain operations to deal with the present business environment and beyond

1. Managing and Applying the Flow of Data

Supply chain professionals are extremely aware of the potential digital supply chains can offer, but now, this potential can become a reality. Connected devices and IoT-enabled solutions have become a necessary implementation for all shippers. This will ensure effective operations that link all points within a supply chain, while simplifying information exchange.

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2. Planning and Executing on Customer Demands

Customers want what they want, and they want it now. Companies must deal with managing the high expectations from customers around product availability and expedited delivery. While this Amazon effect has elevated customer experience across the board, it has also resulted in companies stockpiling trillions of dollars of inventory – a cost that very few, including Amazon, can justify. As a result, companies should consider focusing on improving supply chain operations such as logistics & inventory management and execution, versus massive stockpiling.

It is also essential for logistic service providers (LSPs) to be able to securely collaborate with their customers, carriers, and other service providers on a neutral digital platform in order to successfully meet these rising demands. At a time when accessible data and predictive analytics are key competitive differentiators, establishing a centralized, digital repository provides an even playing field for companies. It provides the same access to reliable data across the supply chain, enabling retailers to concentrate on delivering improved customer experience, competitive prices and a higher quality offering.

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3. Dispersed and Unconnected Motor Carriers

Motor carriers are a critical link in the supply chain, despite being the most dispersed and least connected transportation mode. While they carry massive volumes of cargo — more than 70 percent of domestic tonnage— the vast majority belong to small organizations.90 percent of trucking companies operate six or fewer trucks. Carriers, LSPs and shippers need to embrace solutions that provide low- or no-cost TMS-like solutions that empower owner-operators with access to logistics and supply-chain networks, which improve the flow of information and provide access to a broader ecosystem.

4. Adopting AI-enabled Solutions

PricewaterhouseCoopers determined that Artificial Intelligence (AI) is projected to contribute up to $15.7 trillion to the global economy by 2030. This indicates that the supply chain is at a significant point in time where the adoption of AI-enabled solutions could mean the difference between failure and success. Matching technical capabilities with industry-specific expertise will lead to further AI prosperity, just like coupling domain expertise and data with technical innovation is required for technology to be as effective as possible. This will provide impressive and measurable results for those organizations looking to improve their supply chains.

5. Reducing Waste in the Supply Chain

Eliminating the empty miles and excess CO2 emissions must become a bigger focus for smaller companies. Not only are larger organizations increasingly using it as criteria to select partners, but it is the right action to take to better protect our environment. While major manufacturers, shippers and carriers can cause incredible influence within the supply chain market, smaller companies must realize their power, by investing in sustainable initiatives.

Organizations need to address these challenges in the near term to ensure the effectiveness and efficiency of their supply chain in the long term. To prepare for these challenges, organizations should consider the most impactful technology in order to successfully navigate through the unexpected.

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Glenn  Jones
Glenn Jones

Global Vice President, Products Marketing, Blume Global

Glenn Jones Global Vice President, Products and Marketing, Blume Global - Glenn has a proven track record of growing businesses by building and leading product management/marketing and R&D organizations to define, develop, position, and sell highly innovative and high value enterprise solutions delivered in the cloud. He was formerly the COO of Sweetbridge and the CTO of Steelwedge Software. He also held leadership positions at several other companies, including Elementum and E2Open.
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