In an era marked by staggering global trade volumes and continual technological disruptions reshaping consumer behaviours, the imperative for all industry participants is clear: embrace supply chain digitalisation as a strategic necessity.
Once seen as a straightforward sequence of activities, the supply chain is currently undergoing a profound transformation, driven by a range of innovative technologies.
Advances that redefine not only how goods move, but also how data is collected, analysed, and leveraged to improve operational efficiency.
This article will explore the pivotal technologies driving the digital revolution in supply chains, as well as the current benefits already realised through digitalisation in the supply chain.
1. Digitalisation of the supply chain: key technologies
The digital transformation of the supply chain is the result of a suite of cutting-edge technologies that are reshaping the logistics landscape.
Join us as we delve into the cornerstone technologies driving this revolution!
Technologies that facilitate data collection and analysis
Internet of Things (IoT)
The concept of the Internet of Things (IoT) involves linking physical objects to the internet.
By integrating smart sensors onto products, packaging, and vehicles within your supply chain, your company can attain real-time data collection capabilities.
This facilitates increased visibility into:
- The status of your goods: Is there any stock left of a given product in a particular colour?
- The condition of your equipment: Have the pallets been collected after being unloaded of their goods?
Artificial intelligence and blockchain
Artificial Intelligence (AI) and blockchain are also emerging as essential pillars of supply chain digitalisation.
AI, through machine learning and predictive analytics, enables:
- Exploitation of collected data to anticipate market trends
- Optimisation of procurement processes;
- Automation of complex decision-making processes.
Similarly, blockchain, with its transparent, decentralised, and secure system, allows:
- Product traceability: Throughout the supply chain, every step from production to distribution can be recorded immutably and chronologically by all stakeholders.
- Protection and storage of sensitive data: Based on an encryption system, data stored in the blockchain can only be erased if all stakeholders agree. This system enhances traceability and provides more precise tracking at every stage of the supply chain.
For further reading: Blockchain in the supply chain: The revolution is already underway.
Logistics automation and robotisation systems
The automation and robotisation of logistics warehouses are transforming various stages of the supply chain by enhancing efficiency and speed of processes:
For receiving and shipping goods:
- Automatic Truck Loading Systems (ATLS): These systems automate the loading and unloading of trucks, enabling safer and faster handling of goods.
- Automated conveyors for bins or pallets: These facilitate the movement of goods throughout the warehouse, from the reception area to the shipping zone. This automation optimises order processing.
For storage:
- Smart palletising systems: Pallet or bin stacker cranes provide an automated solution for the storage and retrieval of load units.
- The Pallet Shuttle: This automated storage system uses motorised shuttles to move pallets within storage channels. This solution optimises storage space and reduces handling times.
For order preparation:
- Robotic arms handling pick and place operations: They enhance order preparation speed by handling selected items for shipment.
- Pallet stacker cranes and conveyors for bins/pallets implemented in the “goods-to-person” framework: These automate the presentation of goods to operators, eliminating the need for movement in storage aisles.
For internal transport of goods:
- Self-propelled trolleys: These driverless vehicles are designed to transport heavy loads within the warehouse. They enhance the smoothness of internal operations and safety by reducing physical interactions between operators and loads.
- Automated Guided Vehicles (AGVs): These vehicles, guided by advanced navigation systems, are used for transporting goods between different areas of the warehouse.
Business software
The digitalisation of the supply chain also involves the integration of high-performance business software.
Three main types of business software stand out for improving productivity and supply chain optimisation:
- Warehouse Management Systems (WMS)
WMS (Warehouse Management Systems) act as the conductors of warehouses.
They allow for the meticulous coordination of all warehouse activities related to inventory management. From receiving to shipping goods, these systems provide real-time visibility into all stock movements.
Thus, this tool can help you efficiently manage your warehouse by:
- Optimising all storage locations;
- Reducing your costs and inventory errors;
- Improving the quality of your order preparation and delivery service.
- Transportation Management Systems (TMS)
TMS are software dedicated to managing transportation within the supply chain.
TMS are essential tools for orchestrating transport management operations. From route planning to load optimisation, and real-time tracking of shipments, TMS enhance visibility and control over all logistics activities related to transportation.
By centralising information on goods movements, they can help your company:
- Optimise its transportation costs by comparing and choosing the least expensive solution;
- Minimise delivery delays by opting for the most viable solution;
- Reduce its carbon footprint by optimising its vehicle fleets’ routes.
- Enterprise Resource Planning (ERP) Software
ERPs (Enterprise Resource Planning) play a central role: they enable the management of all supply chain links.
These solutions extend far beyond logistics, encompassing areas such as resource planning, financial management, and operations coordination.
As a result, ERPs provide you with a comprehensive view of your supply chain and assist you in strategic decision-making.
Good to know: WMS and TMS software are designed to work together in tandem with ERPs.
For further reading: The future supply chain: focus on tomorrow’s innovations
Digitalisation of the supply chain at LPR
LPR is digitising to offer more responsive, reliable, and sustainable services.
Through MyLPR, an intuitive customer portal, LPR provides its clients with the ability to easily manage their pallet orders.
Additionally, LPR relies on Shippeo, a real-time visibility platform, for tracking pallet deliveries. This integration allows LPR and its clients to benefit from complete transparency regarding shipment statuses, enhancing logistics planning and reducing the risk of delays.
LPR also utilises Anaplan for optimising its forecasts. With precise forecasts, LPR ensures the constant availability of pallets for its clients. This avoids stock shortages, while ensuring flawless logistics planning.
2 . The benefits of digitalisation for the supply chain
Enhanced supply chain performance
Process automation improves supply chain performance by reducing human errors and order processing times.
Moreover, automation frees operators from time-consuming and repetitive tasks, allowing the company to allocate them to higher-value tasks.
Although supply chain automation requires a considerable financial investment up front, these technological advancements lead to a significant reduction in operational costs in the long term.
Increased visibility
Through the use of technologies such as the Internet of Things (IoT) and digital traceability, companies can track the movement of their goods in real time, identify potential bottlenecks, and anticipate logistical issues.
This increased visibility across all operations promotes better collaboration among various supply chain stakeholders, reducing delays, stock shortages, and supply chain interruptions.
Blockchain also enhances data transparency within the supply chain, providing optimal visibility to each stakeholder in the company.
Support for strategic decision making
The digitalisation of the supply chain provides companies with a vast amount of actionable data and in-depth analyses that facilitate strategic decision-making.
By leveraging real-time data collected by artificial intelligence technologies (and machine learning), companies can optimise the management of their material resources by developing more efficient procurement strategies.
This high capacity for strategic decision-making enables organisations to remain competitive in an ever-changing business environment.
Example:
Let’s take the example of an e-commerce company using AI to analyse consumer purchasing trends, historical sales data, and other external variables such as seasons or special events.
Through predictive analysis, AI can identify trends in the data, allowing the company to accurately forecast future demand for different products. This forecasting capability enables the company to make key strategic decisions for:
- Stock optimisation;
- Production planning;
- Supply chain management;
- Real-time product pricing adjustments;
- Offer personalisation by identifying specific customer segments and their preferences.
Increased flexibility
Digitalisation also provides unmatched flexibility to the supply chain, enabling companies to quickly adapt to changes in their market.
In fact, thanks to real-time data collected by these cutting-edge technologies, companies have increased visibility into demand fluctuations and emerging trends in their sector and can easily adjust their supply chain to fit these changes.
This agility provides a significant competitive advantage to companies, especially in the wider context where consumer demands change rapidly.
Conclusion
In conclusion, the digitalisation of the supply chain has emerged as a crucial evolution in the logistics universe. The Internet of Things, artificial intelligence, blockchain, and automation and robotisation systems have redefined operational efficiency standards.
These technological innovations represent a major strategic lever for maximising business performance.
Beyond performance improvement, digitalisation paves the way for more ecological and responsible management. By enabling better visibility across the entire chain, these technologies encourage more rational resource use, waste reduction, and minimisation of the carbon footprint of logistics operations.
With its MyLPR retail application, LPR helps you digitise your supply chain. With just one click, you can order your pallets and track all your transactions.
