Rise of Technology-Infused Supply Chains

More than half (52%) of companies currently host critical enterprise applications in the Cloud while 76% believe artificial intelligence (AI) will be an important part of their supply chain within the next three years, according to an annual report published today by Loftware, a software company specializing in enterprise labelling and artwork management solutions.

The global survey, which draws on insights from over 300 labelling, packaging, and supply chain professionals across industries in 55 countries, found that investing in cutting-edge technologies such as cloud computing, AI, and IoT solutions is no longer a tactical necessity but an enabler for business growth and agile supply chain operations. This shift in prioritization has primarily been driven by ongoing supply chain disruption, heightened consumer expectations, and growing sustainability demands.

“As companies plan for 2024 and beyond, the combination of geopolitical uncertainties, climate instability, and the threat of recession continues to impact companies of all sizes. Organizations are grappling with disruptions that extend far beyond the traditional scopes, requiring a strategic recalibration to weather the storm and emerge stronger in the face of adversity,” said Josh Roffman, EVP of Marketing at Loftware. “With this in mind, a commitment to bolstering digital transformation strategies through investment in innovative technologies will be critical to streamline operations, drive growth, and increase profitability.”

Gartner, a technology analyst firm, supports this notion and reports that global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023.

Address Disruption, Uncertainty, and Cost Pressures

The Loftware report also revealed that sustainability has become a crucial strategic and operational priority for organizations of all sizes around the globe. Of those surveyed, 78% said they have already adopted sustainability initiatives across their organizations due to increased regulations and shifting consumer preferences. In fact, 77% of respondents believe stricter regulations and compliance requirements are pushing businesses to adopt sustainability practices, while 82% reported that consumer preferences for sustainable products are driving this approach.

Facilitating transparency is a vital step in creating resilient supply chains and fostering better sustainability practices, so it’s no surprise that 79% of respondents flagged global traceability as a priority for their company – an increase from 70% just 12 months ago. Using cloud technology, digital traceability helps companies to ensure sustainable sourcing, protect consumers, streamline the location of inventory, guarantee on-time delivery to market, and address the growing issue of counterfeiting. Indeed, 48% of those surveyed believe the inability to effectively manage recalls is the biggest risk of not being able to track products through the supply chain. This compares to 33% five years ago.

As highlighted by Loftware’s report, Industry 4.0 will continue to have an impact on companies and their manufacturing operations. Organizations operating across a range of industries, from automotive, electronics, and manufacturing to consumer products and life sciences, are embracing automation and standardized solutions which help them meet their own unique requirements. This is especially true for mission-critical business processes such as cloud labeling and printing, with 91% of respondents reporting seeing an advantage of using a single platform to support thermal transfer labeling and direct marking and coding. By adopting such a solution as part of a cloud-first strategy, businesses gain printing flexibility, accuracy, production line uptime, and efficiency to manage costs and support global growth.

Supply Chain 2024 Predictions

Joe Dunleavy, Vice President of Innovation at Endava – a global provider of digital transformation, agile development, and intelligent services – provides his insight and 2024 predictions.

1. Rapid integration of advanced technologies

In 2024, I expect that we’ll witness an accelerated integration of advanced technologies in supply chain management. In particular, I anticipate predictive analytics and machine learning algorithms will be more widely used to enhance demand forecasting, inventory management, and the overall efficiency of supply chains. This can all be achieved with the likely integration of hardware technologies such as sensors and IoT. This will reduce costs and increase agility, giving companies a competitive advantage. As well as this, it can also aid suppliers’ ability to identify opportunities which reduce their carbon footprint. Additionally, IoT will enable the real-time tracking of goods, ensuring transparency and reducing the risk of disruptions.

2. Building agile and resilient supply chains

In 2024, I expect to see a focus on building agile and resilient supply chains. This can involve leveraging technologies such as AI for predictive analytics, and cloud-based solutions for scalable and flexible infrastructure. The focus will be to build robust supply chain ecosystems which can adapt to unforeseen disruptions and maintain operational continuity. In 2024, resilient supply chains will play a crucial role in offering more efficient operations, improved productivity, and risk reduction. Resilient supply chain technologies reduce risk by allowing visibility into all operations across the network and empowering businesses to optimise and adapt their processes and logistics in real time. This shift towards resilience reflects a proactive approach to challenges, ensuring that supply chain ecosystems can not only withstand disruptions but also thrive in the face of uncertainty.

3. Robotics and automation for warehousing and fulfilment will continue to advance

Whilst robots have been implemented in warehouses for many years, the form they’ve taken continues to evolve with new types of robotics and automation being introduced every year. I expect 2024 to be no different as the warehouse robotics market size is set to see a 16.13% growth as more warehouses invest and expand their capabilities. As investments increase, I expect the deployment of advanced robotics and automation solutions in warehouse and fulfilment operations to increase in tandem. In particular, I expect to see the widespread adoption of Automated Storage and Retrieval Systems (AS & AR) in 2024. Traditionally, manual labour played a significant role in warehouse picking. However, the growing investment in robotics has prompted more warehouses to automate this process, leading to improved efficiency and a reduction in errors. This anticipated prevalence of AS & AR systems in 2024 represents a notable shift towards automation, simplifying operations and minimising manual interventions in warehouse workflows.

4. Final mile delivery and autonomous vehicles

In 2024, I expect to see a ramp up in the integration of autonomous vehicles and drones to reshape the delivery landscape. You can look at examples in the industry such as Manna Drone and Wing as a showcase of what is possible. This has the potential to reduce costs, increase delivery speeds, and improve customer satisfaction. This being said, a key challenge is set to emerge as customers are increasingly seeking free as well as faster deliveries. As the last mile represents the costliest and time-intensive phase of the supply chain, constituting up to 53% of total shipping costs, it will be important to strike a balance between meeting customer expectations for speed and cost-effectiveness while navigating innovations in last-mile technologies.

5. Competitive Last Mile Delivery Begins with Visibility

In 2024, I expect businesses to focus on developing capabilities for last mile delivery visibility to meet rising customer expectations. Consumers are increasingly anticipating visibility for every order, and businesses that can provide this information not only enhance customer satisfaction but also have the potential to reduce calls to their customer service centres. Given these rising expectations, I expect every business will aim to provide comprehensive visibility into orders. This isn’t just a response to customer preferences but also a risk mitigation strategy in case of any delivery-related issues.

 

Retail Supply Chain and Logistics London

Retail Supply Chain & Logistics Expo is a UK retail focused supply chain & logistics event with 200 innovative exhibitors with the latest technologies and strategies. The event is an unmissable opportunity for any retail professional who wants to transform their supply chain and to take their business to the next level! Taking place on the 27th & 28th of February, the ExCeL London, will be transformed into an electrifying hub dedicated to the retail and supply chain sector.

Retail Supply Chain & Logistics Expo will bring you the latest fulfilment services, 3PL, AI solutions, warehouse equipment sector trends and strategies and so much more. The event is proud to host a platform for a community of experts, professionals and entrepreneurs committed to growing their supply chain resilience, warehouse automation strategies and ultimately increasing customer loyalty with faster delivery solutions. Build relationships with new connections and join thousands of professionals looking to grow their business and increase their profits.

At the Expo 2024 edition, listen and learn from over 100 of our key industry experts, who will equip you with the profound knowledge required for you to create the most efficient product journey.

Your ticket also grants access to the White Label World Expo, eCom Business Live, Smart Retail Tech Expo and Ecommerce Packing & Labelling Expo.

Don’t miss this transformative event; secure your FREE ticket today!

Logistics Business will be exhibiting here, stand SC2893.

Cargo Management System Goes Live

Menzies Aviation, the service partner to the world’s airports and airlines, together with leading technology services and consulting company, Wipro have announced the successful launch of its new Menzies Aviation Cargo Handling (MACH) cargo management system.

Following the successful launch of Menzies’ cargo operation at Bucharest Otopeni Airport (OTP) in Romania, the MACH system will be deployed initially at 10 air cargo locations, with plans to implement the system across Menzies’ global network by the end of 2024. The partnership between Menzies Aviation and Wipro has combined Menzies’ extensive knowledge and expertise in air cargo operations with Wipro’s cutting-edge technology capabilities. In just over 12 months since signing the contract, it has delivered a pioneering, end-to-end cargo management system, MACH, which is set to transform Menzies operations across the network.

MACH represents a significant enhancement on Menzies’ current cargo management system, boasting a modern user interface (UI) with easy to use navigation, making it exceptionally user friendly for all stakeholders. Its cloud-based architecture ensures accessibility from anywhere, anytime and on any device, providing real-time insights and data.

Operating from a ‘single source of truth,’ MACH seamlessly integrates with other systems helping to simplify and standardise all processes. An integral part of the cargo management ecosystem, it improves data accuracy as all electronic information is populated automatically across the system. MACH’s drive to standardise is matched by its ability to generate bespoke solutions where necessary. The system can create and automate checklists for specific tasks, while tailored employee development pathways mean that warehouse staff only ever receive training relevant to their roles.

Its open architecture approach ensures that Menzies and its customers leverage their existing technology investments while benefiting from the advantages of MACH. The launch of its state-of-the-art MACH cargo handling system as well as its recent award win in partnership with Dexory for its Robot Mimi exemplifies the company’s efforts to provide world class innovative technology solutions to its customers.

Beau Paine, Global Head of Cargo, Menzies Aviation said: “We are excited to embark on the journey to deliver MACH to our customers in Bucharest. It is said, technology is best when it brings people together and we are very proud of the accomplishments of our team and Wipro over the last 12 months. We can’t wait to accelerate the implementation plan in continuing to roll out MACH across the wider network in the months to come.”

Rory Fidler, VP Cargo Technology, Menzies Aviation, said: “I am incredibly proud of the team and partnership that we have developed with Wipro. Their knowledge and experience have been vital to bringing our vision to life and developing a truly game-changing product for the industry. In just 13 months, we have achieved an incredible feat, which has been underpinned by hard work. From a six page briefing document to five million lines of code, 3,000 test scripts and more, we are excited to develop a truly innovative platform for the Menzies Cargo Network.”

Omkar Nisal, Managing Director UK& Ireland, Wipro Limited, said: “We are proud of our partnership in helping Menzies transform their cargo business through the deployment of Wipro’s state-of-the-art cargo handling solution. Working together leveraging our leading technology capabilities and combining it with Menzies’ deep aviation knowledge is a reflection of Wipro’s ethos. We’re delighted to be able to help Menzies realise their ambitions through technology and innovation.”

Subha Tatavarti, Chief Technology Officer, Wipro Limited, said: “With our vision to transform industries through technology and invent the future of enterprises, we continue to be excited and grateful for the opportunity to work with Menzies to transform the cargo handling industry through our aviation products. In partnership with Menzies, we built a modern, scalable solution that will not only cater to one of the world’s leading cargo handlers, but will open the door to building an industry-changing aviation platform. We look forward to our continued success with Menzies.”

Menzies will roll out MACH to ten air cargo locations – Macau in China; Wellington, Christchurch and Auckland in New Zealand; Sangster Intl. and Kingston Jamaica in Jamaica; Ontario, Vancouver, Calgary in Americas; and Amman in MEAA – by the end of Q1 2024, with plans to implement it across the Menzies’ global network by the end of 2024.

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