Overcoming the Challenges For Supply Chain Logistics in the Pandemic Reality
Supply chain logistics are an integral part of any economy or market. However, the pandemic has revealed several bottlenecks and issues with the global supply chain. In fact, the industry has been combating manpower constraints, slow processing, and even a lack of COVID-19 testing kits.
The fast-moving consumer goods and healthcare industries are two of the most recognized businesses confronting significant logistics issues. Most consumers are concerned about the scarcity of fast-moving consumer goods, which are often essentials and show relatively short expiry dates, as well as healthcare items such as disinfectants.
The majority of countries are suffering supply constraints as a result of panic buying by consumers in the aftermath of the COVID-19 outbreak. As a result, fast-moving consumer goods companies are always monitoring the situation and devising new strategies to assure uninterrupted supply.
New Technologies and Systems in this Industry
As more self-isolated customers switched to internet purchasing, the supply-chain logistics business has been put under tremendous strain to meet up with the rising demand. As a result, logistics organizations have needed to come up with new strategies to respond to the quickly changing logistical trends. Fortunately, several new technologies have been created to confront some of the issues the industry faces.
Robotics automation: The applications of robotics automation in the supply chain industry has just begun, but it has proven to be efficient for many enterprises. It has the potential to significantly improve your process, leaving little to no opportunity for error.
Using drones and self-driving vehicles for diverse purposes, many organizations have already integrated robotic automation to optimize operations. The technology is aimed at automating processes and freeing up your human workers to focus on methods that improve the customer experience and increase your company’s efficiency.
Internet of things (IoT): Businesses are quickly figuring out how to make the most out of the Internet of Things. The data gathering capabilities of IoT have proven to be an invaluable tool in the supply chain industry.
Businesses are able to increase supply chain visibility by adding IoT devices, allowing them to maximize their assets and ROI. It’s one of the most important supply chain trends since it allows logistic organizations to interact digitally and easily transfer data. In warehouses and retail outlets, IoT technology can help with predictive maintenance, visibility, and inventory management.
Blockchain technology: Businesses have relied heavily on blockchain technology to reduce supply chain interruption and improve customer experience. In the next few years, global spending on blockchain technology is estimated to reach close to $11 billion. The technology provides many advantages ranging from faster payment, shipment tracking, more efficient and accurate coordination, and much more.
Blockchain also enables organizations with logistic operations to process data more efficiently by eliminating waste. The transparency provided by blockchain technology can even aid supply chain management in detecting problems before they arise.
Green logistics: Environmentally conscious organizations have been searching for more environmentally friendly processes and enterprises. The major goal of green logistics optimization is to help supply channels and warehouses in becoming more environmentally friendly, lowering their carbon footprint on the planet.
Due to increased demand, an increasing number of businesses are preferring to go green in their supply chain management. Consuming less energy, such as gas, water, and electricity, is one of the most important aspects of this movement, which can directly assist the environment.
Israel Startups Setting the Global Standard in this Space
Israel’s high-tech ecosystem has generated over 157 functioning firms and startups in the supply chain and logistics management industry. This is mainly due to its strong capabilities in domains like SaaS, artificial intelligence, and data analytics.
One Israeli startup launched its first IoT product, a Bluetooth tag, which combines all of the necessary components to form a compact IoT device. The device, unlike other IoT devices on the market, does not have a power supply and instead relies on ambient radio waves to fuel itself. The gadget is essentially an ARM microcontroller with a three-core CPU, RAM, and ROM, which is then coupled to a power circuit.
Another Israeli-based startup created a robot that can adapt to current logistics hubs. The technology of the company is based on the entrepreneurs’ experience designing military robotic systems and simulators. This startup came first place in a competition hosted by the SouthUp technological incubator in 2017.
An Israeli startup has the objective to turn on-demand drone delivery into the norm rather than the exception. The company collaborated with Walmart on a test project that saw the delivery of selected groceries and household items from stores in North Carolina. This came after a successful trial of the service in Grand Forks, North Dakota, where essentials were delivered, assisting in the fight against the mounting health issue presented by the pandemic.
Transforming the Aging Logistics Chain
Following COVID-19, reengineering the supply chain provides the chance to create a more sustainable and foolproof supply network. Industry leaders have been under pressure to provide more long-term solutions but balancing the cost of change against profitability is a tricky balancing act. And oftentimes immediate shareholder value has been preferred and prioritized.
New technologies and innovation are desperately needed in the logistics supply chain industry. The pandemic has made it clear that the current infrastructure is unsustainable and incredibly inefficient. With numerous issues and problems arising, there is a demand for new solutions now more than ever. This provides an excellent opportunity for startups and the implementation of new technological advancements.