Technology trends such as artificial intelligence (AI), cloud-native software, circular economy and unified logistics will impact not only the supply chain but also retail this year. US-based software solutions provider Manhattan Associates has made four predictions for 2024 on some of the key trends in these two areas.
“2024 will be a year of technological change for supply chain and retail. Technological developments will not only change consumers’ shopping experience, but also further improve efficiency and transparency in the supply chain,” explains Pieter Van den Broecke, Managing Director Benelux, Germany, Denmark and Eastern Europe at Manhattan Associates, in a statement .
1) Artificial intelligence will increase efficiency
Generative artificial intelligence is developing in giant steps and, according to Manhattan Associates, will “increasingly become established and be integrated into everyday life”. For logistics, this means that artificial intelligence, machine learning and automation play an important role in distribution centers and warehouses by making everyday tasks easier for people.
“The rapid development of generative AI can help increase efficiency in ways that were previously unthinkable. The ability to use voice to give computers tasks that they then carry out precisely is a revolution for the world of work. This progress enables almost everyone to handle complex tasks with the help of AI,” predicts the company.
2) Cloud-based software will enable real-time response
Cloud-based software not only enables maintenance and operational aspects to be outsourced to software providers, but also faster access to system updates. Regular real-time updates are required to stay up to date.
“In this way, companies can keep up with fast innovation cycles and react to customer expectations and market trends almost in real time. If companies want to meet the expectations of the market and consumers, they can no longer afford to stand still,” warns Manhattan Associates.
3) Sustainable and circular efforts will retain customers
Younger generations in particular, such as Gen Z and Millennials, place great value on responsible consumption and ask for recycled, used or environmentally friendly products. Circularity and sustainability are becoming increasingly important, and consumers remain loyal to retailers who advocate for them. They are also obliged to comply with ESG regulations.
“Returns can be specifically reduced or even avoided entirely if consumers have more control over the online purchasing process by being able to change or cancel orders themselves afterwards. A smarter, faster and cleaner supply chain plays a crucial role in the success of companies,” advises the software provider.
4) Unified supply chain is more flexible
Manhattan Associates advocates for optimized logistics by combining Warehouse Management Systems (WMS) and Transport Management Systems (TMS), which often operate separately from each other, which can lead to delays or rigid systems.
“For example, if a transport plan is transferred to the warehouse management system, the planning in conventional systems can no longer be redirected, adjusted or optimized. “Through the Unified Supply Chain – the unification of the individual areas – it is possible to intervene in the processes of the entire supply chain, make short-term changes and thus save time, resources and a lot of effort,” says the company.
Retail companies also receive a precise overview of the current inventory in distribution centers, warehouses and branches. An important advantage because, according to a recent survey conducted by Manhattan Associates, only 5 percent of retailers in Germany believe they have an accurate overview of the inventory in the stores and throughout the entire sales network at all times.
“RFID can play an important role here. This technology can be used to locate and identify inventory levels, enabling real-time inventory. As soon as the system detects that stocks are running low, reorders can be made automatically,” recommends the software company.