The top 5 technologies that usher supply chain trends in 2024
31 May 20248 min read
Summary
- The pandemic and new technologies have transformed supply chain management, driving a rebound of the industry to a $21.95 billion market cap in 2023. Asia is at the forefront of this shift, fueled by the China+1 initiative, a large consumer base, and investor-friendly markets in India, Singapore, Malaysia, Taiwan, and Vietnam.
- Emerging technologies such as AI, blockchain, and cloud computing are redefining transparency, efficiency, and resilience in global supply chains. AI adoption has driven significant gains in logistics, inventory, and service levels, while blockchain ensures traceability and security, and cloud systems deliver cost savings and scalability.
- Further innovation is coming from Supply Chain as a Service (SCaaS) and 5G connectivity, which are enhancing agility, flexibility, and real-time tracking. As 55% of supply chain leaders scale investments in technology, the industry continues to evolve toward sustainability, visibility, and long-term resilience.
The pandemic and the dawn of new technologies drove a major overhaul in the supply chain management (SCM) concept. It also paved the way for new supply chain trends. Wherein, technologies aid in the creation of innovative frameworks that improve supply chain.
In turn, the industry rebounded to a market cap of $21.95 billion in 2023 from $15.58 billion in 2020. Asia has witnessed accelerating diversification of global supply chain infrastructure. Such is in regard to the “China+1”initiative that gained momentum across Asia-Pacific’s (APAC) emerging markets.
Meanwhile, a large consumer base, low labor costs, a huge talent pool, and investor-friendly policies are also luring Western investments. These are in India, Singapore, Malaysia, Taiwan, and Vietnam.
A KPMG report noted that six out of 10 businesses in 2023 planned to invest in tech. Wherein, the said technologies are helping replace legacy systems. They also introduce end-to-end transparency in supply chains.
The global adoption rates of cloud-based technologies, artificial intelligence (AI), and blockchain were 51%, 26%, and 23%. These data were shared in the PriceWaterhouseCoopers (PwC) 2023 report.
Artificial intelligence
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“If the relevant data is available, AI-based programs can, for example, show a company directly which suppliers could provide missing goods. They also indicate how long it will take for the company’s warehouse to be restocked,” Munich-based IFO Institute Economist Anita Wölfl said in relation to AI and big data’s role in supply chain operations.
Blockchain
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“Blockchain has evolved from being a buzzword to now being seen as essential to supply chains. The fact that it is a decentralized ledger that is immutable helps to improve material traceability,” Daniel Laverick, VP and Head of Digital & Data at Zuellig Pharma, shared.
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“At Zuellig Pharma, we have been working with blockchain technology for quite some time. Tracking individual products and packs is key to this as well. Being able to get a digital identity for each package allows you to see the granularity of where that product has been. With blockchain, we can detect counterfeits in real time and look at enhancing cold chain monitoring. Previously, data sharing was very difficult, but now you can break down those barriers, ” David added.
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“The most obvious benefit of adopting cloud computing solutions is the cost savings from deployment and ease of speed at which a solution can be set up. Unlike in legacy systems, either custom-built or packaged software, there is no IT infrastructure to set up and maintain on-premise, no upfront licensing fees, and no software programs to install and maintain, ” Thomas Halliday, APAC GM at AEB, wrote in an op-ed for an online platform.
Supply chain as a service
Appropriate use of Supply chain as a service (SCaaS) enables a company to develop cost-efficient, affordable processes. Whilst, subsequently boosting a company’s bottom line.
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“Our clients can outsource their manufacturing, distribution, procurement, logistics, accounts payable systems, and more to us. The advantages we offer include end-to-end connectivity, improved productivity, lower cost, greater service, heightened flexibility and adaptability, and better asset management,” Sumit Bhatia, Co-founder of Aksum Trademart underscored.
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