Supply chain in itself is a complex concept with a high number of participants at each level. And with the recent black swan events, it has become even more important to master your supply chain management skills and tools if you wish to thrive in the industry. Survival is just not enough. In such a situation, the ongoing geopolitical instability, including trade wars and political tensions, have only once again highlighted the vulnerabilities of supply chains.
To address these challenges, technology has emerged as a critical enabler for supply chain leaders. From predictive analytics to blockchain and the Internet of Things (IoT), technology has the potential to transform supply chains, making them more efficient, resilient, and agile in the face of geopolitical uncertainty.
Predictive analytics has gained an important pedestal among technologies that can help companies mitigate supply chain risks. By analyzing data from various sources, including social media, news outlets, and historical data, predictive analytics can help companies identify potential disruptions before they occur.
Creating digital supply chain networks is another useful manner in which companies can leverage technology to their benefit. These networks can help companies connect suppliers, manufacturers, and customers in real-time, enabling better visibility and collaboration across the supply chain.
Undoubtedly, technology has become an indispensable tool for supply chains in light of the fragile geopolitical conditions. And it is on the back of various innovations and technologies, that companies can build more resilient and agile supply chains which can withstand disruptions and uncertainty. However, it’s important to note that technology alone is not enough. Companies need to have the right strategies and processes in place to fully realize the benefits of technology in their supply chains.
DP World’s annual research, conducted in partnership with Economist Impact, beautifully highlights the importance of technology in enabling supply chains to navigate the unpredictable and volatile global geopolitical environment. Regionalisation and reshoring are being adopted faster than ever to make supply chains more capable of withstanding disruptions – and tech solutions are irreplaceable to succeed in such a gigantic feat. This shift is being driven by the need to mitigate geopolitical risks, including trade wars, sanctions, and other forms of economic nationalism.
A key finding suggests that digital tools for inventory management are emerging as the most effective supply-side resilience strategy, with 35% of companies now using advanced technologies to improve resilience in their value chain, compared with 31%last year.
DP World as well, in its own capacity, is taking a proactive approach to support the industry’s tech journey by investing in solutions that enhance communication between shorter, localised supply chains and global ones. Its ‘Cargoes’ suite is a prime example of how technology is being used to streamline every step of a cargo’s journey along the supply chain, from tracking and tracing to optimising inventory management.
In a world where geopolitical tensions are a constant reality, businesses must remain agile and adaptable to changes in the geopolitical landscape. This requires a combination of regionalisation and reshoring strategies, supported by technology that enables supply chains to be more transparent, efficient, and responsive to changes in demand.
In conclusion, as the global geopolitical environment remains fragile, it is essential that businesses invest in technology to enhance the resilience and reliability of their supply chains. By embracing technology and remaining agile, businesses can protect their economies, generate prosperity, and ensure the long-term sustainability of their operations.