2020 was probably the toughest year for every industry and individual. The global COVID-19 pandemic brought in an unprecedented wave of disruption. One of the worst affected was the supply chain and logistics sector.
Despite the challenges, however, the industry managed to sustain growth. Data shows that the global supply chain management market is expected to grow from $23.2 billion in 2020 to $41.7 billion by 2026, at a CAGR of 10.3%.
Technology helped the global supply chain and logistic industry to keep up with the rapidly changing consumer behavior. The sudden surge in online shopping was a wake-up call for many, even for industrial hardware suppliers. It fueled the rapid adoption of technology in the first half of 2021, which is likely to endure in the coming months.
Here are a few supply chain and logistics technology trends you can’t miss in 2021.
Warehouse Automation
Warehouse automation is likely to become more prevalent in the coming years. In fact, the current COVID-19 pandemic has accelerated the use of automation in warehousing. The warehouse automation market is likely to touch the mark of $30 billion by 2026 at a CAGR of almost 14% between 2020 and 2026.
Rapid changes in the warehousing industry, such as increasing labor costs and labor shortages, are pushing for automation. Other factors influencing this growing trend include demand for higher throughput, costs savings, and improved scalability.
Whether it is an industrial hardware supplier or a retail store, many companies are already using some form of automation in warehousing. For example, Automated Storage and Retrieval Systems (AS/RS) are already being used for high-volume warehousing operations. These systems use a combination of shuttle, mini loaders, and robots to improve warehousing efficiency and worker safety.
Similarly, companies are using Automatic Guided Vehicles (AGVs) to move material within warehouses. AGVs run along pre-defined paths using sensors and magnetic strips, among other things.
Blockchain
Blockchain technology can transform the visibility and profitability of supply chains. Several companies have already started testing the potential applications of Blockchain.
A few years ago, retail giant Walmart worked with IBM to create a food safety blockchain solution. It uses Hyperledger Fabric, an open-source ledger technology, to make the decentralized food supply chain more transparent.
Other potential applications of Blockchain include:
- Faster and transparent financial transactions as Blockchain transactions require no intermediary like banks.
- Increased real-time visibility in supply chain management, which can improve efficiency and cut losses.
- Reduced risk of fraud or failure as Blockchain uses distributed ledger system. All blockchain transactions are irreversible and immutable.
- All parties in a supply chain can get access to the same information without delay. Moreover, no one can delete or conceal any information from the Blockchain owing to its distributed nature. This will reduce errors and speed up communication.
