Defining the complexity and importance of an organization’s Supply Chain is a difficult task, which can be summarized as its primary involvement with storage and logistics, when in fact it has a strong relationship with the production process, purchasing management and the consumer market. This chain is often referred to as the “backbone of the business”, because, like the structure of the human body, it is strong, flexible and acts as a support for the most important parts. However, it is also fragile: a certain increase in pressure can lead to a fracture that has an impact on the entire company.
Therefore, any market fluctuation impacts this complex chain, so managers are increasingly looking for innovative and intelligent solutions to optimize the process. As a result, what we have seen is a transformation of these departments, which has been accelerated by the Covid-19 pandemic, as leaders understand that competitive advantage is more sustainable when innovation occurs in processes and not in products. In fact, a differentiated product attracts consumers, but what retains them are precisely invisible processes. Therefore, let's look at some market innovations that can be used in supply chain processes.
Innovation is not always technology
It is inevitable to associate the term innovation with Artificial Intelligence, automation and drones, as these technologies enable companies to promote improvements in their processes, even leading to cost reductions in the medium and long term. However, we cannot limit ourselves to this, as many innovations are achieved simply by understanding the process as a whole and intervening in specific stages, without necessarily requiring technological implementation.
Delivery on the spot
Managing large-scale logistics processes is relatively easier than managing deliveries to end-use establishments, as each city and region has its own rules for accessing urban centers, the circulation of cargo vehicles, and the lack of parking spaces. Therefore, some companies are seeking to innovate in this regard and have started using bicycles as an alternative to the problems mentioned above, in addition to being a fast and cheap delivery option that helps reduce greenhouse gas emissions.
Self-service logistics
Some companies that have innovation in their DNA, such as Amazon, are developing incentive programs for their customers to create their own delivery companies to distribute the packages and orders they receive. This is another way to ensure that delivery at the end of the line is more effective and less costly for the organization, in addition to being beneficial for the buyer and the intermediary.
On-Demand Storage
A major problem in the supply chains of industries that operate in a seasonal market is the lack of space to store both raw materials and the final product. And it is precisely this seasonality that prevents them from building their own storage center or signing long-term contracts with warehouses. As an alternative, some companies in the market seek to unite these industries that need space only for a short period of time with others that have their own storage facilities but have space to spare. In this way, one saves money and the other monetizes what was generating costs for them.
No risk, no return
Any innovation requires financial investment from organizations, but the fixation on costs is so great that they often interrupt the innovation process and prioritize other projects. This not only results in missing opportunities and falling behind competitors, but also leads to a lack of motivation among employees, especially those who were involved in the process. Therefore, it is important to know that investing in innovation means taking risks, but that the returns will come, even if not at the desired speed.
