Next Gen Supply Chain Market To Hit $100B+ by 2030 - LogisticsIQ

The lure of low-cost data storage and cloud computing has enabled organizations to capture and process large volumes of data in a short period of time, finding valuable business insights and achieving end-to-end digitization of the supply chain. Companies are implementing technological changes in crucial logistics functions in supply chain planning, procurement, sales & operational planning, and customer services.

For example, under its “Strategy 2025” plan, Deutsche Post DHL Group is spending around €2 billion on digitalization until 2025, with the investment expected to lead to yearly benefits of at least €1.5 billion by 2025.

In LogisticsIQ’s latest study, “Next-Gen Supply Chain Market – Global Forecast to 2030”, this market is likely to reach $100+ billion by 2030. Enablers of the digital supply chain include artificial intelligence, robotics and automation, driverless vehicles and drones, IoT, augmented and virtual reality, 3D printing, cloud computing, big data and predictive analytics, data capture, digital twin, blockchain, 5G connectivity, and wearable and mobile devices.

The major drivers of a digital supply chain include demand for greater visibility and transparency in the data process, faster adoption of IoT, increasing investment in supply chain innovation, and huge demand from e-commerce. Companies embracing this digital revolution are beginning to see the full potential of Supply Chain 4.0, resulting in real-time product visibility, strategic sourcing and optimization, end-to-end visibility, inventory visibility and optimization, real-time manufacturing asset intelligence, micro-fulfillment, efficient last-mile delivery, and dynamic supply and demand synchronization. The proliferation of technologies and opportunities around the digital supply chain means companies need to look seriously at outsourcing these functions. This will be a major shift to new business models, including supply chain as a service (SCaaS).

Rise of The Digital Supply Chain Market with IoT

Organizations are looking to leverage IoT in supply chain management by installing sensors and communication devices to achieve accurate asset tracking, improve inventory management, predictive maintenance, and establish demand driven supply chain network. Logistics companies have been using smart sensors to increase automated data collection and processing and GPS to improve visibility of shipments and improve fill-rate for quite some time now. If we take an example of Jabil then their Intelligent Digital Supply Chain (IDSC) solutions enable the best strategies, innovation, and design throughout the supply chain, delivering superior financial performance and customer experience which include Jabil InControl™, Procurement Solutions and Supply Chain solutions.

5G to Revolutionize NextGen Supply Chain Market

Widespread 5G rollout is expected to occur starting 2020, promising mobile networks with high data speeds, improved quality, and reduced latency. With growing number of smart devices being used in supply chain, there is a challenge to handle all on network which can be addressed by 5G to track the even smallest item, V2X communication and order fulfillment through Augmented Reality in warehouses. 5G is likely to enable massive amounts of data to be collected from remote and mobile sensors analyzed in real time to drive transportation management optimization and predictive analytics. Assuming that there will be millions of mobile robots working in more than 50k warehouses globally to pick, store, sort and transport the materials and everything will be connected through WMS/TMS. It makes really important to have a fast, stable and secure connection of 4G LTE or 5G. In June 2019, AT&T Business, Samsung Austin Semiconductor, and Samsung Electronics America unveiled the first manufacturing-focused 5G Innovation Zone in America which explores using 5G in combination with LTE and Wi-Fi to illustrate key use cases like Automated Guided Vehicles, Digital Twin etc.

Rise of The Digital Supply Chain Market with IoT

Organizations are looking to leverage IoT in supply chain management by installing sensors and communication devices to achieve accurate asset tracking, improve inventory management, predictive maintenance, and establish demand driven supply chain network. Logistics companies have been using smart sensors to increase automated data collection and processing and GPS to improve visibility of shipments and improve fill-rate for quite some time now. If we take an example of Jabil then their Intelligent Digital Supply Chain (IDSC) solutions enable the best strategies, innovation, and design throughout the supply chain, delivering superior financial performance and customer experience which include Jabil InControl™, Procurement Solutions and Supply Chain solutions.

Artificial Intelligence and Supply Chain 4.0 Market

AI in supply chain is being used to address key challenges such as constant change in process, shorter product lifecycle, and increased demand uncertainty by analyzing complex data and forecast future demand. AI is already being deployed in supply chain planning and optimization, including demand forecasting, inventory management, warehouse management, and fleet management. If supply chain has to be dynamic, responsive and interconnected to the ecosystem and processes the solutions like IBM® Sterling Supply Chain Suite gives you the end-to-end visibility, real-time insights and recommended actions to turn disruptions into opportunities for customer engagement, growth and profit.

The Age of Robotic (AGV, AMR, ASRS, Picking Robots) in Logistics 4.0 Market

The rise in e-commerce has led robots to enter warehouses, sorting centers, and are evening being deployed for micro-fulfillment and last-mile delivery. Autonomous mobile robots (AMRs) are now being used in entire logistics chain, from order intake to customer delivery resulting in faster order fulfillment and greater order accuracy.