Over the years, supply chain management has evolved from a relatively simple concept to engineering and managing extraordinary complex global networks. Did you know in the 1940s and 1950s the process of racking & stacking was introduced in order to take better advantage of storage space that resulted in better warehouse design and layout? Since then, the supply chain practices have transformed with the evolving technology and knowledge.

Here is a list of 5 supply chain practices that revolutionized this domain and are currently taking it to the next level.

• Setting Up Supply Chain Council

Earlier, there used to be a single person who was held responsible for the entire supply chain network. But now, without an internal council of leaders in place, the supply chain tends to lack planning, organizing, and strategizing for efficiency as well as better functionality. The supply chain is likely to fail if your organization doesn’t have a governing body to synchronize your existing supply chain strategy with that of the company’s overall strategy.

• Achieving Agility with AI

Back in the day, no one even heard of what Artificial Intelligence is, but now, this is all everyone is talking about. Artificial intelligence has the ability to collect huge amounts of data and harness insight from this data, creating an opportunity to reconsider supply chains tactically and strategically. This provides agility in the process since products are procured and moved from one end of the globe to the other.

• Introducing Sustainable Practices

Innovation has become the key to unlocking the potential of businesses, supply chain process is no different. Therefore, organizations need to keep a close eye on the supply chain operations and their internal practices in order to establish a sustainable platform to operate on. This brings in the need for adopting several sustainable practices like blockchain, adoption of web-based supplier relationship management, etc. Deep hands-on knowledge of these tools and practices can be learned from a supply chain management online course, guaranteeing the credibility of your organization.

• Optimizing Inventory for Reduced Cost

Every business desires to reduce costs and improve their bottom line. This is where optimizing inventory comes into play. There is a very huge cost involved in inventory holding and storing, approximated to around 20-25%. So, this cost can be saved by optimizing the storage of inventory.

• Identifying Areas Where Technology Can Lend a Hand

Technology has been helping humankind from over decades, the supply chain is no exception. But, in order to improve and streamline your supply chain processes, you need to identify areas where newer technology can be integrated to help smooth functionality.

Summing Up!

With the advent of technology and competition, applying these best practices has become imperative for businesses seeking growth and success. To expand your knowledge base, a credible supply chain management online course is recommended. One such course is supply chain management XLRI, from one of the top B-schools in the country. By equipping you with the latest themes and trends along with the best practices, this course in supply chain management XLRI can help you build an effective and fully functional supply chain for your organization.