New Trends in the Supply Chain Industry

New Trends in the Supply Chain Industry

The supply chain is a vital element of any company. Many business leaders look to the supply chain to drive sales and reduce the overall cost of business. There is a lot of new technology in this industry that changes the way that companies conduct business. Investing in the supply chain is expensive at first, but over time will result in cost savings and higher profits for the business.

Inventory Management

One of the newest trends in the supply chain industry is an increased focus on inventory management. Over the past few years, retail companies struggled to get customers in the door. Without customer traffic, companies sit on millions of dollars in inventory that never gets sold. In order to improve inventory turns, many companies invested in new inventory management technology used to improve this process. In the coming years, this is an area of focus for many companies.

Transportation Efficiency

Paying another company to haul freight is never cheap. However, there are companies looking for ways to save costs in this area. The cost of fuel is lower than it was several years ago. Instead of just saving that money, many companies are using those savings to invest back into the supply chain. There are some companies experimenting with owning their own trucking fleet. This is a huge expense at first, but it can save money over time in a variety of ways. Not only that, but the total lead time within the supply chain drops as well.

The supply chain is vital to any business. There are new trends in the supply chain industry that a lot of companies want to take advantage of. Investing money today lowers expenses and improves performance in the future.