6. The Future of Supply Chain Management

[MUSIC] Welcome back to our lesson on The Future of Supply Chain Management.
Upon completing this lesson, learners should be able to discuss trends and challenges associated with Supply Chain Management. Discuss the challenges that the Physical Internet Concept seeks to address. And discuss some of the elements of the Physical Internet Concept. Let’s begin by discussing a number of trends that are beginning to impact supply chains and will continue to do so in the future. First, on the demand side, next generation customers will continue to be affected by the Amazon effect, which clearly has a huge impact on customer expectations. Today, depending on where you live, you may get a variety of products from Amazon within two hours or within a day or within two days. With the growing ability to get anything from books to kayaks without leaving your couch within two hours to two days, there is likely no turning back in terms of customer expectations and industry’s need to be responsive.
Additionally, throughout many areas of the world, there is a growing and aging middle class that is more affluent than past generations. And throughout history, humans have tended to live in more rural or suburban areas. However now, the tipping point is such that the majority of the human race will be in urban areas in the future. Next generation manufacturing will be impacted by the continued growth of 3D printing or additive manufacturing. Which will enable new modular and mobile manufacturing platforms, as well as the potential to dramatically change other parts of the supply chain. For example, rather than having million square foot warehouses dedicated to holding hundreds of thousands of parts, in the future it may be possible to have zero warehousing and make those parts on demand.
Next generation transportation will be impacted by the advent of drones for delivery, automatic guided vehicles and robotics in warehousing and manufacturing, over the road trucking operations consisting of platoons and driverless vehicles moving not only humans but physical goods throughout the supply chain.
Next generation data, with the advent of the Internet of things and a wide variety of smart sensors attached to everything imaginable, we can now leverage cloud-based data sharing and analytical technologies to improve supply chain visibility, reduce variability, and improve responsiveness. These are the keys to effectively managing inventory, while meeting customer requirements. Collaborative supply chains are those where organizations seek synergies through smart product design and sharing of some processes and infrastructure across channel partners within a common supply chain. Most companies are now in the integrated or collaborative stage of supply chain development. Looking into the future we will see the emergence of much greater hyper-connected supply chains. These hyper-connected supply chains may be guided by the tenets of the Physical Internet Concept, which we are about to discuss in more detail. Central to hyper-connectivity is the open sharing of transportation, warehousing, and manufacturing resources among many other elements in the supply chain.
Let’s take a look at a grand challenge that forward-thinking supply chain professionals face. To improve by an order of magnitude the economical, environmental, and societal efficiency and sustainability of the way physical objects are moved, deployed, realized, supplied, designed, and used. And by realized we mean manufactured or transformed. Effectively addressing this grand challenge should provide significant cost reduction and associated ability to reduce prices of physical objects. It will also address environmental considerations such as green house gas emissions reductions, and improve quality of life through a number of mechanisms. This is the grand challenge and goals associated with the Physical Internet Concept.
Let’s take a quick glance at some of the components of the Physical Internet Concept, which is taking hold as a global blueprint for the future of supply chain. The Physical Internet Concept incorporates the use of open markets for transportation, think in terms of an Uber model for freight transportation, as well as an open market for warehousing and manufacturing.
Another key component is the encapsulating of goods in reusable standardized smart containers that are interchangeable, stack-able, clickable. Much like Lego blocks to replace current standards in packaging. With new smart container standards, a new generation of more effective handling, transportation, and storage technologies can be implemented to speed the flow of freight loads across multiple platforms and lanes. Supporting these technologies and new business models will be a number of new protocols and interfaces for open sharing, and a vast community of users will provide input to service provider certification. Think of a sort of Yelp type model for freight movement. And finally, smart, fact-based, proactive, distributed routing and deployment of inventory and production decisions.
Driven by analytics and leveraging the abilities afforded by an open market supply chain Infrastructure. In this lesson, we have discussed trends and challenges associated with supply chain management. Discussed the challenges that the Physical Internet Concept seeks to address, and discussed some of the elements of the Physical Internet Concept. Thank you for joining us on the this lesson and we’ll see you on the next lesson. [MUSIC]

Jim Rohn Sứ mệnh khởi nghiệp