Expecting the Unexpected: The Technologies Boosting Supply Chain Resilience

This year global supply chains have seen consistent disruptions. Tensions from the US and China have amplified the pressure on supply chains, while increasing numbers of natural disasters such as Hurricane Beryl in July have compounded this issue further. We’re also seeing leftover protocols from the pandemic continuing to create delays as well as unpredictability.

Research from Resilinc found that in the first half of 2024 there was a 30% increase in disruptions to supply chains when compared to the first half of 2023 and Maersk suggests 3 out of 4 European shippers have experienced supply chain disruptions in the past 12 months. There is clearly a need for a more resilient and adaptive approach to supply chain management.

As operational disruptions become more common and frequent, companies will increasingly need to integrate advanced technologies such as digital twins, IoT and predictive analytics to provide the tools they need to better anticipate and prepare for challenges. These technologies will not only better equip businesses to mitigate challenges but also set them up for future growth and stability when disruption is only expected to become more common.

 

Adapting is the Key to Success

Digital twins are a critical technology in mitigating supply chain disruption. A digital twin is a virtual model that mirrors real-world processes, allowing companies to simulate everything from production schedules to transportation status and inventory levels. With digital twins in place companies can optimise operations, better inform decision making and improve overall efficacy.

One of the advantages of digital twins is their support in predictive maintenance by continuously monitoring equipment performance. Through real-time insights, digital twins enable companies to proactively recognise inefficiencies within the supply chain, preventing failures and minimising downtime by being able to respond swiftly to emerging issues.

This technology is already successfully being rolled out within companies like Mars and Michelin. Mars uses it to oversee production processes, preventing overfilling in factories, while Michelin leveraged 80,000 simulations for strategic sourcing, saving €10 million annually in logistics and boosting profit margins by 5%.

By investing in technologies that provide real-time data and predictive capabilities such as digital twins, businesses can switch from reactively to proactively managing their supply chain. This builds resilience against future disruptions as well as preparing organizations for how to address potential challenges with greater agility.

 

Building a Complete Picture

Achieving end-to-end visibility across the supply chain will enable businesses to monitor and track each step of the process in real time. With a clear view of operations, companies can make faster and more informed decisions that will lead to greater efficiency while also reducing risks. The improved visibility will lead to stronger relationships with partners and will improve customer experience.

IoT has also proven to be a critical tool when trying to enhance visibility into supply chains. With real-time tracking, devices can provide key insights, such as the movement of the product, the condition of goods, as well as providing businesses with the option to quickly identify and resolve issues relating to delays or quality concerns. In the case of extreme weather causing supply chain disruptions, companies with IoT-enabled tracking systems can re-route shipments in real-time, minimising delays and maintaining customer satisfaction.

This level of visibility not only improves operational efficiency but also enhances the overall resilience of the supply chain by enabling rapid response to unforeseen events. By utilising IoT, organisations can make smarter, data-driven decisions that will not only optimise their performance but also reduce vulnerabilities.

 

Predictive Analytics

Predictive analytics, powered by AI, is transforming supply chain management by enabling companies to anticipate demand and potential disruptions more accurately. This gives businesses greater visibility and performance monitoring which allows them to make data-driven decisions that align with their goals.

These insights can provide companies with a jump start over competitors, helping to make informed decisions that could enhance their supply chain efficiency. For example, predictive analytics can forecast spikes or shifts in demand, enabling businesses to adjust their inventory levels, reduce overstocking and avoid shortages. This can also optimise transportation routes or planned maintenance for equipment before failures occur, reducing downtime and inefficiencies. This is even more critical today when a product suddenly appearing as a hot trend on social media can create unexpected spikes in orders overnight.

The rewards from implementing predictive analytics across supply chains are endless. It can improve operational agility, which can allow companies to react faster to the demands of the market and prepare for unforeseen disruptions.

 

The Road Ahead

Technologies such as digital twins, IoT and predictive analytics are becoming critical in helping organisations maintain end-to-end visibility into their supply chain and helping them with decision making and responding to new challenges. In a world where change is the only constant, investing in these technologies will be critical in enabling companies to build a more resilient and agile supply chain operation that is ready for the unexpected demands of the future.