Future of Sourcing - Internet of Things https://futureofsourcing.com/tags/internet-of-things en Lead Like a Boss: Master Global Supply Chain Shifts https://futureofsourcing.com/lead-like-a-boss-master-global-supply-chain-shifts <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Global%20Supply%20Chain.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Global%20Supply%20Chain.jpg" title="Sustainable procurement practices can reduce supply chain costs by 9 – 16%" class="colorbox" rel="gallery-node-1874-bv_1XDhYLkE"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Global%20Supply%20Chain.jpg?itok=NPskWZ2_" width="1024" height="682" alt="Sustainable procurement practices can reduce supply chain costs by 9 – 16%" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-manage-the-hardest-part-of-a-new-tech-project-the-people">How to Manage the Hardest Part of a New Tech Project – The People</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The supply chain strategy paradigms we have held close and true for decades are being challenged. The questions are complex, important, urgent and without easy answers.</p> <p>Consider some of the traditional supply chain paradigms such as lean manufacturing, just-in-time inventory management and extended payment terms. In light of COVID-19, is the status quo still the right way to operate? Take supplier payment terms, for example. Maximizing working capital has been a top priority for as long as we can remember. Now, given the rise in bankruptcies and the clear connection between supplier viability and business continuity, many procurement leaders are taking a step back and thinking more about their suppliers&rsquo; cash flow in addition to their own.</p> <p>These paradigm shifts are substantial but pale in comparison to the potential changes around supply chain globalization.</p> <h1>Supply Chain Globalization: Is It Time to Localize?</h1> <p>For decades, supply chain strategies have revolved around moving production and sourcing to low-cost geographies. This traditional low-cost sourcing mindset affects everything from lead times, supplier selection, production, quality, margins and more.</p> <p>Today, leaders everywhere are asking if their heavy reliance on global suppliers is less strategic and more of a risk. When Procurious <a href="https://www.procurious.com/how-now" target="_blank">asked more than 600 procurement and supply chain professionals</a>&nbsp;where COVID-19 had the biggest impact, 21% said logistics and transportation slowdowns or delays. Over one in four cited lack of available supply due to production downtimes and shutdowns. Ninety-seven percent said they were impacted in some capacity.</p> <p>Pressure and attention are heightened when disruptions cause shortages to critical supplies such as ventilators or personal protective equipment, direct materials and popular merchandise. Beyond the headlines, there&rsquo;s also a significant impact to the services supply chain. When critical outsourced services, including customer support, security and IT, were suddenly forced to go remote, we saw a corresponding rise in risks related to quality, fraud and compliance.</p> <p>When a supply chain disruption occurs, it is impossible to control what is happening, especially when the product or service you rely on is thousands of miles away and completely inaccessible. What business leaders can control, however, is from where they source. That explains why over one-third of the profession is currently planning to either expand their supply base or shrink their global supply chain and depend more upon local suppliers.</p> <p>The idea of realigning supply chains is not new. Questions about globalization <a href="https://www.procurious.com/procurement-classes/is-it-mexico-s-turn-alternative-supply-to-china" target="_blank">and the heavy reliance on China</a> have been bubbling for years. Macro and geo-political events such as the China-U.S. trade war and Brexit brought the topic to the surface. COVID-19 caused it to boil over. <a href="https://www.procurious.com/procurement-news/will-mexico-overtake-china-as-the-worlds-biggest-manufacturer" target="_blank">Forbes even went as far as to say COVID-19 will become the final curtain on China&rsquo;s nearly 20-year role as the world&rsquo;s leading manufacturer</a><u>.</u></p> <p>Our research shows that over half of supply chain and procurement professionals believe Fortune 500 companies should reduce globalization by <a href="https://www.procurious.com/procurement-news/supply-chain-is-this-seismic-strategy-shift-possible" target="_blank">localizing supply chains and bringing manufacturing back home</a>. But as most industry veterans recognize, that shift is far easier said than done.</p> <h1>The Catch-22 for Supply Chain &amp; Procurement</h1> <p>Surprisingly, 27% of executives plan to stay the course and not make any meaningful post-pandemic strategy shifts. Many of them probably want to alter approaches, but recognize the inherent complexities and costs associated with doing so.</p> <p>Understandably, most executives have never before experienced a supply chain disruption to this extent. While localization seems like an appealing strategy to minimize future risks and boost the local economy, it&rsquo;s far from a quick and easy fix. The obstacles are plenty.</p> <p>Overcoming the deep reliance on low-cost sourcing is the first challenge. The second is production complexity. Technology gets more innovative, personalized and sophisticated by the day. It would be nearly impossible for a single manufacturer to hold all the technical capabilities and expertise to produce these products 100% in-house. To keep up, manufacturers outsource critical components to others, who outsource to sub-suppliers and so on.</p> <p>Breaking this chain, while simultaneously bringing production closer to home and swaying the board to accept lower margins, will require executives and procurement teams to perform in a new reality.</p> <p>Of course, there are clear benefits of going local. The end-to-end supply chain impact on carbon emissions is more than five times that of companies&rsquo; direct operations. Localization optimizes and shortens the supply chain network, lowering emissions.</p> <p>In addition, sustainability performance is proven to impact the bottom-line. According to the World Economic Forum, sustainable procurement practices can <a href="https://www.weforum.org/agenda/2015/03/how-to-create-sustainable-supply-chains/" target="_blank">reduce supply chain costs by 9 &ndash; 16%</a>. On a larger scale, shifts toward localization strengthen national and local economies, support the job market and, in many cases, reduce enterprise risk.</p> <h1>What&rsquo;s to Come?</h1> <p>The decision to move production requires long-term planning and commitment. It won&rsquo;t and can&rsquo;t happen overnight.</p> <p>Companies planning to make seismic strategy shifts like localization require proper technology investments. Over <a href="https://www.procurious.com/procurement-news/now-is-the-time-to-learn-industry-4-0-technologies" target="_blank">90% of companies</a> are already using at least one Industry 4.0 technology, including blockchain, artificial intelligence, internet of things and more. While adoption of blockchain is still relatively low, the network promises to play a pivotal role in whatever changes come next.</p> <p>The following 6 &ndash; 12 months will be crucial for every company and require a great amount of flexibility and adaptability. It&rsquo;s impossible to predict (with 100% accuracy, at least) what&rsquo;s next. Anyone that tells you differently is out of their mind. My advice to C-suites and supply chain and procurement leaders is to remain agile, invest, lean on your peers and prepare for anything.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/blockchain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Blockchain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/artificial-intelligence" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/internet-of-things" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Internet of Things</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Lead Like a Boss: Master Global Supply Chain Shifts - Future of Sourcing" addthis:url="https://futureofsourcing.com/lead-like-a-boss-master-global-supply-chain-shifts"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 19 Oct 2020 23:08:31 +0000 Tania Seary 1874 at https://futureofsourcing.com https://futureofsourcing.com/lead-like-a-boss-master-global-supply-chain-shifts#comments The New Age of IoT and the Supply Chain https://futureofsourcing.com/the-new-age-of-iot-and-the-supply-chain <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Internet%20Of%20Things.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Internet%20Of%20Things.png" title="Internet of Things" class="colorbox" rel="gallery-node-1708-bv_1XDhYLkE"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Internet%20Of%20Things.png?itok=AVbK-p4C" width="624" height="325" alt="Internet of Things" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/artificial-intelligence-whats-now-and-next-in-iot-driven-supply-chain-innovation">Artificial Intelligence: What’s Now and Next in IoT-Driven Supply Chain Innovation</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Ushering in the era of The Internet of Things (IoT) brings with it conceptual and cultural change in supply chain management. Previous processes that were once not possible to automate, now not only function independently, but are capable of sharing data and interacting in such a way as to maximize efficient output.</p> <p>While the precise impact of IoT is dependent on technology costs outweighing efficiency savings, there are several inherent benefits the supply chain can expect from its introduction.</p> <h1>Transparency&nbsp;</h1> <p>It&#39;s no secret sustainable, and ethical products are the only way forward. There is overwhelming demand in the marketplace from consumers for insight into the methods of production employed by large companies. With IoT, not only is there greater transparency but also smoother functionality as a side effect.</p> <p>Shio Muriyama, a supply chain expert, explains, &ldquo;Using a range of IoT sensor-equipped machinery throughout the supply chain means that potential problems or stumbling blocks can be flagged in real-time. Previously this would cause severe disruptive downtime. Instead, we&rsquo;re seeing a systemic change in supply chain transparency and functionality.&rdquo;</p> <h1>Predictive Power&nbsp;</h1> <p>Following &nbsp;this line of thought, IoT sensors are capable of tracking heat, humidity, oil viscosity, and other key data points for the functionality of the supply chain. This is a staggering benefit, which provides employers with vital data on maintenance requirements, increasing efficiency and profit potential, while most of all, identifying integral issues that threaten to ripple through the entire supply chain.</p> <h1>Human Error&nbsp;</h1> <p>With the demand for ethical and sustainable production, the need for precise quality control has increased. Consistency is vital, and human error is a variable the supply chain can no longer afford. IoT sensors collect data on a granular level, across the entire supply chain, collecting and correlating the vast array of data into a digestible manner for management to utilize. This increases consistency, retaining higher degrees of quality.</p> <h1>The Last-Mile Hurdle&nbsp;</h1> <p>The last mile is arguably one of the most important aspects of the supply chain but often undervalued from an outside perspective. Particularly in terms of perishable goods, the reliability of the product reaching the end consumer depends on a host of factors. The introduction of IoT into the supply chain can alleviate this, with the assistance of sensor-equipped technology that provides real-time data on conditions within shipping containers. Companies are faced with a slew of concerns over their last-mile delivery procedures, as this inherently impacts the chances of repeat orders. It&rsquo;s a vital step in the continuity of the supply chain.</p> <p>Tech writer Jade Myers recently provided insight into this area, saying, &ldquo;Companies have recently shifted perspective, looking to a range of last-mile delivery technologies. The vast amount of data gathered and interpreted by IoT technologies within the supply chain will help to optimize the last-mile delivery process. It&rsquo;s a no-brainer for any company keen to retain efficiency and sustainability.&rdquo;</p> <h1>Safety in the Workplace&nbsp;</h1> <p>One of the greatest benefits for both employers and employees is the boost in workforce safety following the introduction of IoT technologies. From computerized systems that handle repetitive or potentially hazardous tasks to dynamically connected wearable devices that detect dangerous conditions and automatically warn employees or shut down equipment, IoT technology can lead to fewer work-related accidents. This issue has been consistently one of the most difficult to deal with within the supply chain and following the adaptation of IoT technologies, one which has been vastly reduced.</p> <h1>Customer Insight&nbsp;</h1> <p>Incredibly, products equipped with IoT technologies can predict and track purchase patterns, adjusting production volume in real-time, thus tailoring it to real-time demand in the marketplace. Given how customer care is evolving, the need to be competitively efficient in assisting with your market&rsquo;s concerns means that companies can use the new data analytics and collection capabilities to their advantage.</p> <p>It&#39;s clear that IOT is revolutionizing the supply chain, and this is only the beginning. There&rsquo;s no doubt that as technology evolves, the IOT will develop stronger capabilities to make supply chains more efficient and effective.</p> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/internet-of-things" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Internet of Things</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Technology</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The New Age of IoT and the Supply Chain - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-new-age-of-iot-and-the-supply-chain"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/north-america" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">North America</a></div></div></div> Thu, 20 Feb 2020 21:27:21 +0000 Michael Dehoyos 1708 at https://futureofsourcing.com https://futureofsourcing.com/the-new-age-of-iot-and-the-supply-chain#comments