“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” These words by Charles Darwin is exactly what defines the advancement of automation amongst industries and business functions.
And one of the biggest verticals that have been disrupted by the advent of technology in the supply chain function. The automation and digitisation of the supply chain process offer organisations the opportunity to not only run the function more efficiently, but also better anticipate the needs of their consumers through more effective delivery, tracking, inventory management, demand forecasting, and discrepancy noting mechanisms. This evolution and constant innovation are key in shaping up the supply chain of tomorrow.
What has accelerated this monumental pivot? The year 2020! Organisations across the country have turned the challenges on its head, creating opportunities to innovatively cater to their consumers.
Utilising the Ingenuity of AI:
Companies in recent times have begun implementing Control Tower initiatives, which enables them to collect and analyse real-time data throughout the end-to-end supply chain and resolve critical issues using a cloud-based artificial intelligence. This initiative, especially now, has given companies complete visibility across the supply chain, enabling them to be more agile by better predicting disruptions, and respond to unplanned events. Taking a longer-term perspective, the control tower practice being implemented has helped companies further optimise their operations by tracking demand patterns and planning inventory accordingly while enabling costs efficiency. It also fosters collaboration across teams and partners and preserves organisational knowledge to improve and accelerate decision-making and outcomes through such AI-powered programmes.
The App Advantage:
Another development has been the adoption of apps to aid the supply chain processes and partners. Companies have begun using such digital tools to stay connected with their business partners while also keeping them informed about the inventory, product movement as well as demand fluctuations that may be occurring.
For instance, intending to be more connected with our retailers during the pandemic, Marico automated the order taking process using a retailer app and a tele-caller facility to reach out to more than 80,000 top retail outlets in the country.
Bringing the store to the consumer:
One of the steps taken by consumer companies is the introduction of ‘Direct to Consumer’ platforms. A report published by Unicommerce, last year, corroborated this by finding that there has been a 65% increase in brands or companies developing their own portals in the country, which has further led to an increase in consumers placing and receiving their orders by their own accord. This study also found that these companies have witnessed a staggering 88% order volume growth through their brand websites in 2020, which clearly signals how useful this can be for their business going forward. Marico Limited, too, recently launched its own Direct-to-Consumer portal, (stores.saffola.in) which makes it easier for consumers to place orders directly for products under their umbrella. This initiative has seen a significant upswing since its launch, as the company’s e-commerce sales soared and currently contributes 8% of the overall domestic business.
As a result of the pandemic, consumers are preferring to order their essentials online through a D2C platform from the comfort and safety of their homes. This has led to a distinctive change in how companies now plan the production numbers in their supply chain. For instance, they would now need to earmark a significant percentage of their products for their owned platforms, while simultaneously creating entirely new distribution and delivery system to fulfil orders across India.
What does the future hold for Supply Chain Automation?
McKinsey in 2019 speculated that many operations could be automated by 2030, as artificial intelligence takes over the many repetitive activities that logistics companies perform. It also expected to see fully automated high-rack warehouses, with autonomous vehicles navigating the aisles by then.
Given the direction corporations have been taking with regards to their Supply Chain in the past few years, this could truly be a possibility in India as well. It is undeniable that the current pandemic has had a lasting effect on the supply chain and has helped improve the penetration of automation in the industry. However, the true impact of the pandemic and the scale at which it has pushed supply chain automation forward can only be measured in time, as companies across production and manufacturing continue to embrace the change and reap the benefits brought about by it.