CARGOCONNECT-AUGUST2024 - Flipbook - Page 56
FEATURE : FUTURE SUPPLY CHAINS
per cent to 10 per cent reduction in manufacturing costs, and
a 6 per cent to 10 per cent reduction in transportation costs
through route optimisation and freight rate benchmarking.
* Digital Transformation: Embracing digital transformation
within the supply chain can result in a 10 per cent to 15 per
cent reduction in inventory carrying costs, a 5 per cent to
10 per cent reduction in manufacturing costs, and a 6 per
cent to 10 per cent reduction in warehouse and distribution
centre operating costs.
* Strategic Interventions: Implementing strategic interventions can lead to a 10 per cent to 25 per cent reduction in
transportation costs through network redesign and a signiocant
improvement in on-time-in-full (OTIF) performance, reaching
95 per cent or higher.
The Changing Landscape of
Supply Chains
The global supply chain landscape is undergoing profound changes
driven by geopolitical tensions, digital disruptions, and pressures
from climate change. According to surveys, 78 per cent of supply
chain executives recognise the transformative impact of digital
technologies, heralding a shift towards enhanced eïciency and
better decision-making capabilities throughout supply chains.
In response, the logistics sector is diversifying its digital
eforts beyond basic cargo management into comprehensive
areas such as inventory control, warehousing, procurement,
and customer satisfaction. This expansion includes specialised
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domains like temperature-controlled and express deliveries, where
technologies such as IoT, real-time monitoring, and Blockchain
enable precise monitoring of environmental conditions crucial
for medical supplies and perishable goods.
Predictive analytics plays a pivotal role in optimising manufacturing processes, warehouse inventory levels, and transit
schedules, while route optimisation tools enhance delivery
predictability, thereby reducing operational costs and eforts. The
digitisation of regulatory documents has further streamlined
transit procedures for long-haul shipments, thereby elevating
overall service quality and compliance standards across the
logistics industry.
