A few weeks ago, I had the opportunity to speak with Pervinder Johar, CEO of Blume Global . During our conversation, Pervinder and I spoke abut the changing nature of supply chain management, especially in the face of the ongoing Covid pandemic. I asked Pervinder to give his insights on a few key points. First, what is the current state of supply chain technology? Second, what market trends are emerging? Third, what is the next stage of the supply chain technology evolution? Fourth, what is the network effect and how can it enhance supply chain management operations? Fifth, where do digital twins fit into supply chain management? And finally, what are you seeing in terms of supply chain sustainability?
Below are some key points from our discussion as well as the full video interview. The State of Supply Chain Technology
Supply chain has become a household name in the last 18 months. Many global supply chains had single points of failure; when there were disruptions, the impact was felt immediately. In the first half of 2020, there was a lot of uncertainty and it was difficult to figure out demand. While demand for essential goods spiked, there were a lot of unknowns around demand for other items. E-commerce surged at this time, putting more strain on supply chains and the ongoing capacity crunch.
In the second half of 2020, demand again spiked again. This shift in demand was due to the fast that people were not spending money on travel or going out. Instead, it went into discretionary spending which meant demand spiked and supply chains had issues reacting to the capacity issue.
The pandemic served as a wake-up call for companies that were not digital to begin with. There are basically two types of supply chains: digital and non-digital. The companies with a digital supply chain were able to easily shift to a remote environment. For those that without a digital supply chain, they were left scrambling to find laptops to enable remote work. Market Trends
Right now, the mega trend is that the focus is on inbound supply chains rather than outbound. From a technology standpoint, outbound supply chains, including last mile delivery, were well equipped to manage it. This is due to the fact that there are still two main issues on the inbound side.
> There is a shortage of semiconductors around the world. This has impacted manufacturing operations as factories cannot run due to the component shortage. The automotive market in particular has been hit hard.
Transportation capacity remains an issue. It is hard to move goods when there are so many vessels waiting to dock at ports. The result is that goods cannot be processed and moved along the supply chain.
Supply Chain Technology Evolution
The digital supply chain is a trend that is here to stay, and most companies are not fully digital. About 90 percent of businesses involved in supply chain are small to medium enterprises. So how do you make […]