Pioneering Supply Chain Automation Trends of 2024
Gartner reports1 that companies will allocate over 70% of the supply chain IT budget to growth and performance enhancements. Consequently, supply chain management using technology is critical for businesses wanting to expand and improve.
Clearly, supply chain automation is no longer a luxury but a necessity for businesses that want to stay ahead of the competition. Automation enables companies to overcome challenges in a complex supply chain environment. It streamlines inventory management, demand forecasting, MRO supply chain optimization, supplier relationship management, and more.
But as the Gartner report revealed, merely adopting automation is not enough. To stay competitive, your automation technology should remain up-to-date. So how can you stay ahead of the curve? In this blog, we will discover the latest supply chain automation trends in 2024 that are reshaping businesses.
Transforming Decision-Making with AI
According to a PwC report2, AI and ML-based technologies are taking the lead, with 22% of executives planning to spend at least $5 million. Companies can make data-driven decisions to adapt to changing business conditions using AI and, specifically, generative models.
These models are trained on past experiences and decisions and keep humans in the loop for monitoring. And as you continue decision-making and recording consequences, you can retrain these models to augment decisions further.
Driving Efficiency with Digitalization
Over 86%3 of executives agree they need to continue investing in technology, with over 50% intending to focus on optimizing cost. Digitization enables companies to meet customer demands, manage supply-side challenges, and improve efficiency.
For example, investing in the right tools gives you access to real-time analytics, which can improve operational stability and help meet customer needs.
Moreover, your supply chain management software should evaluate your existing systems and ensure seamless integration with automation technology, improving efficiency and helping you achieve a unified supply chain.
Navigating Scope 3 Emission Control
In 2023, regulators and customers are expected to emphasize the control of Scope 3 emissions. According to KPMG4, over 50% of organizations intend to intensify their commitment to sustainable sourcing to fulfil their ESG initiatives.
Organizations will face the challenge of substantiating their emission reduction decisions, avoiding greenwashing accusations, and substantiating their low emissions. Ensuring your supply chain management software can capture real-time data across your supply chain for ESG measurement and reporting is essential.
Supply chain automation enables organizations to optimize their B2B supply chain management, which can help reduce costs, improve efficiency, and enhance quality. However, it is not a one-size-fits-all solution since different industries have different needs.
Therefore, organizations must adopt a customized and flexible approach by partnering with a trusted supply chain solutions provider, such as Moglix. For instance, Moglix helped a leading tire manufacturer in India to improve its supply chain efficiency through vendor-managed inventory holding. As a result, it achieved 3% savings on total cost ownership. If you want to learn more about how Moglix can help you automate your supply chain and achieve your business goals, schedule a call.