A series of unexpected events have shaken the global logistics system in the past few years. COVID, the Ukraine war, Brexit, and a container ship stuck in the Suez Canal. All combined to delay all types of deliveries.
The supply chain is responsible for orchestrating and integrating the different actors involved in electronic commerce, such as production areas, suppliers, inventory, vendors, logistics, and transportation. For this reason, it is imperative for the success of any business. If one of the stages does not work, it affects the entire process and can cause damage to the company.
The supply chain plays a strategic role in every company and needs efficient management practices, as well as end-to-end visibility, in order to add value to the purchase journey and the entire consumer experience.
Global Logistics Management
The supply chain requires alignment between various sectors in addition to strategic management and alignment with company policies and premises.
To achieve this, designing the best management and process model means guaranteeing high productivity and competitiveness compared to your competitors. Only with a well-designed flow will it be possible to integrate and manage the different agents involved in the process; from production to product distribution.
Additionally, to carry out quality management of the supply chain, it is necessary to adopt the best models and technologies to guarantee optimization at all stages.
The use of technology to facilitate the integration and automation of global logistics
With demand growing in electronic commerce and the digital transformation in this area; investing in technology to automate processes, having access to data to make strategic decisions, and integrating the supply chain are necessary steps. Especially to optimize processes and manage everything with greater precision.
Consequently, it is important to adopt software and cloud solutions that allow greater cooperation and collaborative performance throughout the chain. Minimizing errors and problems along the way and expanding operational capacity and efficiency.
With technology aiding integration and automation in the supply chain, it is possible to increase productivity, align communication between agents in the process, facilitate the relationship between partners and improve the quality of the service offered.
Challenges in the management process
Given the complexity of the entire process, global logistics management is a challenge, as it directly affects the positive or negative results of a company. For the flow to occur in an effective way, the integration of the processes is essential.
The main challenges of the supply chain management process are the following:
Integration of teams and processes: since this area involves different agents from the same company or associated companies, it is necessary to have standardized and integrated processes to guarantee operational efficiency.
Stock control – Having a stock to control merchandise and product availability; as well as standardized information, is essential for the success of the purchasing process. It is also crucial to invest in a digital catalog that allows you to organize all the available references and your specifications.
Transport and distribution – The distribution of goods is crucial to guarantee the quality of the customer experience. Also to prevent your business from suffering any losses. Therefore, being in sync with the logistics team or with your transport partners is key to ensuring efficiency at this stage.
Evaluation of results – Since this is a strategic area; it is necessary to monitor the metrics and indicators to assess whether the process is functional and to identify possible bottlenecks. The use of technology to support decision-making will create a positive impact on management.
Profits with the correct management of the supply chain – When the supply chain is well organized, planned, and managed, it allows companies to optimize resources and productivity; in addition to adding more value and quality to your services. It also contributes to the risk mapping process, avoiding damage and burdens to your operation.
Understanding the supply chain in detail will take your business to the next level. Therefore, it is important you seek out new knowledge and stay up to date on all the changes and solutions.
The Upcoming Changes
With all the challenges in this multi-billion-dollar industry; companies like Grydd are applying the latest technology to help companies minimize the problems of the global logistics system.
The market for new supply chain-focused tech services could exceed $20 billion a year in the next five years, according to analysts. By 2025, more than 80% of new supply chain applications will use AI and data science in some form.
Grydd smart operating system has been in this market for years. We know how to organize all the information you need to optimize and automate your supply chain. Moreover, it has a multidisciplinary team of experts ready to advise you. Get the best technology, and join Grydd.