In the dynamic environment, firms are continually researching and developing strategies to target market competition and gain an advantage successfully. Supply chain helps organizations to effectively manage the flow of goods and services in the firm and improve customer value. Technological developments have provided organizations with more simpler methods to enhance corporate performance, increase customer satisfaction and retention rates. According to research, entrepreneurs in the Middle East and North Africa will increase their IT spendings for optimal digital evolution.
Supply chain technology is advantageous for businesses as it helps to simplify and improve the efficiency of business operations. The right technological installment to the concept will enable firms to reduce operational costs and gain more inventory control. According to research, 90 percent of leaders consider digital advancements as a positive change in traditional methods of supply chain management.
Radio Frequency Identification (RFID)
One of the popular technological concepts that have helped enables optimal supply chain management is Radio Frequency Identification. RFID includes barcodes, tags or chips placed on the merchandise to establish simple yet cost efficient and real-time inventory tracking. According to statistics, the RFID market is predicted to reach $24.5 billion by 2020 compared to $17.6 billion in 2018. RFID will improve inventory accuracy by over 90 percent, thus reducing any errors or confusions. Experts consider RFID as a vital capability for sustainable practices because it is simple to implement and has high feasibility. RFID assists firms to digitally manage inventory data and create consistency and predictability to improve communication and corporate reputation.
The Internet of Things (IoT)
The Internet of Things includes devices connected through the internet thus allowing a smooth transition of data and improving communication. According to industry experts, incorporating IoT in the supply chain may enhance productivity by more than 15 percent. IoT assists retailers to instantly share information and make swift decisions to capitalize on strategies and gain a competitive advantage. The Internet of Things helps retailers to improve organizational activities by eliminating bottlenecks and thus improving operational efficiency. According to industry experts, the IoT market is predicted to reach $123 billion by the year 2021.
Other Technological Advancements
Cloud computing technologies enable enterprises in reducing the cost incurred regarding incorporating new supply chain software. According to a recent survey, firms will allocate over 50 percent of their IT expenditure by the year 2020. According to Market Research, the implementation of cloud computing technologies will resolve 48 percent of the conflicts within the organization.
A recent advancement that has helped major corporations such as Amazon in improving their supply chain management are Drones. The technology is mostly utilized by larger corporations due to its high cost of acquisition and installation within the company. Drones will eliminate delays in transport and enable firms to reduce dependence on human labour, and thus reducing human error. Drones will allow firms to target more customers due to the attractiveness of the technology. According to a recent survey, over 40 percent of the consumers prefer companies who use drones in their product offerings. According to experts, Drones will cross $140 billion by 2023 because of its continuously rising popularity and consumption patterns.
Despite the initial acquisition cost of supply chain software, 80 percent of leaders predict that companies will earn back the investment within two years of implementation. Supply chain management will assist firms in successfully targeting a significant market trend which is omnichannel retailing. Technology will help entrepreneurs in the Middle East maintain a smooth transition of data across various devices as they aim to incorporate smart initiatives for market success.
Written By: Rajiv Prasad