As the global supply chain continues to become more connected, companies must keep up with new factors and demands to achieve efficient field operations. In an earlier blog we analysed how a connected supply chain can gain you a competitive advantage, and for companies that operate in the field, a connected supply chain is even more important.
The 3 Factors Driving Change:
Transformational Technology: Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, Advanced Analytics, Automation. These were all considered buzzwords five years ago, but today they are a reality as organizations continually look to future-proof their supply chain and drive down costs. However, gaps in accurate field inventory data can make these transformational technologies less efficient and, in extreme cases, lead decision makers to make counter-productive business decisions.
Customer Centric: As a consumer, how many times have you needed to call out an engineer to report a problem (think no phone/internet, utility problem, appliance repair), only to be told, after diagnosing the problem, that the engineer doesn’t have the part and it will take days to order? In the UK, this problem alone cost businesses 37 billion pounds in next year sales (US $46.6B). It’s led to an increased use in urban and on-demand warehousing in order to bring goods closer to the customer and develop customer-centric supply chains that reduce the cost of the last mile and provide a better experience.
Financial Gain: As more companies realize that inventory is money in a different form, having a holistic view is crucial for improving cash flow and having the right inventory, in the right quantity, in the right place, at the right time. By doing this many companies see numerous financial benefits, one of which is being able to positively influence their ebitda margin, making them more attractive for investors.
If you’re facing challenges in managing inventory in the field, conducting a supply chain assessment can enable you to make improvements and gain breakthrough inventory control.