Technology embedded Supply Chain is imminent for business survival and growth.
CAGR predicts the growth of the Global Supply Chain market to grow 16.0% between now and 2025. Driving factors are
- The Emergence of multi–channel distribution networks
- Global supply chain networks
- Data privacy and security concerns
- A necessity for efficient forecasting models
- Growth in E-Commerce Industry (post-covid)
APAC contributes most of this growth while they are contending to become the next supply chain hub.
Strategic backup from the government to aid manufacturing and warehousing facilities in the form of tax relaxations permits organizations to modernize the supply chain ecosystems. On the other hand, strong government regulations to streamline supply chain processes push the business to look for technology adoption. Finally, the instability caused in the market post Covid-19 has driven companies to re-evaluate their global supply chain. Companies strive to make their supply chains more agile, flexible, and transparent from a risk standpoint to move beyond the crisis.
It is critical to point out that third-party logistics providers act as a catalyst behind the market forces. In general, third-party logistics is a “To-Go” option for a newer market. There is no surprise that it is a booming business in this region. Third-Party Logistics is prominent in the APAC region for various reasons like real estate pricing, expats regulations, and cost efficiencies.
Top reasons for procuring warehouse management systems
“Warehouses are the heart of the Supply Chain. Technology embedded warehouses determine the organizations’ supply chain health.”
Emerging warehouse solutions took center stage as it encapsulates all the critical features required for supply chain functions.
Benefits of Warehouse Management System
- Manage a multitude of product lines by sales channels
- Attain Inventory Accuracy and prevent inventory loss
- Offer Value-Added Services to customers with confidence
- Ability to promise On-Time Delivery to gain customer confidence
- Standard Operating Process reduces human errors, labor productivity
- Optimum space utilization permits new business onboarding
- Ease of regulation implementation
General Challenges with Warehouse Management Systems:
- Lack of awareness about the benefits of WMS among small-scale industries
- The necessity for business-specific solution design and implementation
- User acceptance and adoption(mindset)
- The return on investment (ROI) does not justify the cost of OnPrem WMS costs substantial software licensing cost, implementation cost, and ongoing maintenance cost
Mitigate challenges and reap the benefits of Warehouse Management Systems:
Engage Third-Party Logistics Provider
Third-party logistics firms fueled the growth and adoption of supply chain technology. They operate on a service-based model(Transaction), and initial costs on solution design, implementation, and support are shared across their customers.
Cloud WMS
It is a lucrative option for the business of any size
- House multifaceted supply chain functions
- Limitless Scalability
- Reduced implementation time and cost
- Flexible payment model(Module, User, Usage)
- Enhanced cybersecurity
- Off the shelf e–commerce and omnichannel features
- Seamless extensions with external systems
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Conclusion
Globalization puts everyone closer than ever. Covid19 attested to that global supply chain network and its impact on the economy. Businesses that adopted technology–aided supply chain operations outpaced their competitor. Smart investment in the warehouse technologies and warehouse management solution mitigates the future supply chain predicament.
Team up with ITOrizon to learn more about streamlined solutions that can help your business to reach its full potential.
