Looking into the future of supply chain technology
In addition to AI, a number of digital technologies promise to transform supply chain management in the future with advancements in supply chain transparency, connectivity and efficiency. While some, like quantum computing, still need time before they are available for widespread business use, others are already being implemented in supply chains today.
Network technology – in focus
Affected industries:
Industries with just-in-time (JIT) production and industries that have a high degree of automation like manufacturing or retail
Affected supply chain segments:
Transportation, warehousing
The backbone of interconnectedness
Network technology in supply chain refers to the technological developments that are the backbone of integrated logistics operations, where information and data exchange is crucial. Developments in autonomous driving rely on next-generation connectivity (e.g., 5G, 6G), while many Internet of things (IoT) applications rely on low-power network technology like RFID.
Related developments
Facets of this trend
- Next-generation connectivity (e.g., 5G, 6G, etc.)
- Internet of things enabler technology (e.g., RFID, GPS, and more)
- Distributed ledger technology (e.g., blockchain)
Getting ahead of the trend
Real-time tracking and accurate ETA prediction can yield a real competitive advantage on the transportation market.
To keep pace with the competition, logistics service providers should evaluate the integration of network technology devices into their assets.
Future computing – in focus
Affected industries:
All industries that rely on optimization
Affected supply chain segments:
Transportation, warehousing, value-added services
Overcoming barriers of traditional computation
Supply chain optimization involves tasks like network optimization or solving vehicle routing problems. Although these problems are scientifically well explored, they often get too large to take every single problem dimension into consideration when calculating optimal solutions. Future computing like quantum computing and supercomputing promise to overcome existing calculation barriers and open new possibilities for optimization.
Related developments
Public funding on the rise
China has announced governmental funding of $15.3 billion for the development of quantum computing. With $7.2 billion, the EU has announced the second largest amount of public funding. The German government alone is supporting more than 160 research projects in this field.
The race for computational power
While the question of the best technology to create qubits remains unanswered, tech giants have big ambitions for the next years. IBM, for example, announced this year that they aim to build a 100,000-qubit quantum computer within the next 10 years – a huge step considering that the largest IBM quantum computer currently available has 433 qubits.
Facets of this trend
- Supercomputing
- Quantum computing
Getting ahead of the trend
Future computing is still in an early stage. In the near future, businesses will not be able to compute large or complex problems on their own hardware,
but will instead rely on computation as a service from data centers. Quantum algorithms are being tested for small problem instances,
but the technology is not yet ready to create competitive advantages.
Wearable technologies – in focus
Affected industries:
Labor-intensive industries like manufacturing
Affected supply chain segments:
Warehousing
Empowering essential workers with technology
In warehousing and production operations, many tasks include heavy lifting. To support warehouse workers, digitally supported physical technology can facilitate labor-intensive tasks and reduce physical stress on humans. This can be done by providing information via wearable technology or by applying technology that physically supports workers in executing their tasks.
Related developments
Human exoskeletons
DB Schenker and Hermes conducted first pilot projects for equipping warehouse workers with exoskeletons.
Tech companies set their sights on the future
With the Vision Pro headset, Apple aims to disrupt the market for augmented reality gear. While Meta already has competitive virtual reality headsets on the market with its Quest series, Samsung announced it will collaborate with Qualcomm and Google to create an Android-based mixed reality headset.
Facets of this trend
- Exoskeletons
- Augmented reality gear
- Wearable sensors
Getting ahead of the trend
With regards to the labor shortage, wearable technology is a good way to make physically exhausting tasks easier for workers.
Businesses should consider including wearable technologies into their working environment to attract new workers.
Authors
Holger Clasing
Vice President and Head of Strategy Practice
4flow consulting
Wendelin Gross
Head of
4flow research
Gero Holzheid
Supply Chain Scientist
4flow research
