10 Supply Chain Disruptors

10 Supply Chain Disruptors

March 3, 2015

According to a recent article in the Q4 2014 issue of MHI Solutions, there are ten supply chain disruptors that we should all be evaluating in our businesses based on the U.S. Roadmap for Material Handling and Logistics. These ten factors affect how goods are distributed, managed and handled.

1. E-Commerce

Growing e-commerce sales require companies to increase the sophistication of their inventory systems to ensure what is sold online is indeed in stock for customers, ensure speedy delivery times for direct to consumer shipments, as well as communicate the steps of the process to the customer along the way.

2. Relentless Competition

In order to remain competitive in the market, companies are going to have to continue to optimize their supply chains to offer a wider range of products and services – cheaper and faster!

3. Mass Personalization

According to the U.S. roadmap for material handling and logistics, customers expect to “have a product any time they want it, anywhere they want it, any way they want it”. Companies are going to have to be prepared to delivery their products in this manner without charging a premium.

4. Urbanization

The concentrated population levels of urbanization create a few challenges including high land costs for distribution centers, increased need to for home delivery, and smaller purchase quantities due to limited storage space in urban homes. Companies are going to have to stay ahead on alternative methods of distribution to meet these needs.

5. Mobile and Wearable Computing

These technologies are being utilized by all ages in our growing population and as customer expectations on immediate and constant communication in regards to the delivery times of their orders increase, companies will need to take advantage of mobile and wearable computing for real-time control of their logistics operations.

6. Robotics and Automation

As the robotics industry progresses, the reality of driverless trucks becomes more realistic. Consider the cost savings on a reduction of workforce of truck drivers and improved safety.

7. Sensors and the Internet of Things

The advancing technology of embedding sensors on all stages of a products lifecycle which communicate directly to the internet can provide important information to your supply chain including identifying faulty product as well as transportation speed and condition.

8. Big Data and Predictive Analytics

Understanding and correctly identifying correlations between data and the actions of customers can result in better planning of logistics and operations.

9. Sustainability

Considering economic development, environmental preservation and social development, companies will need to be prepared to provide value to their employees, address effects of operations on the environment, and become increasingly socially responsible for the public.

10. Changing Workforce

As the “baby boomers” retire, the new markets will have to be explored to replace the workforce. Companies will need to attract workers by providing positions in the material handling industry that provide career advancement.  

For additional details on these 10 disruptors visit www.mhlroadmap.org to download the Roadmap.