(2016), "Supply chain evolution – theory, concepts and science", International Journal of Operations & Production Management, Vol. One reality that has complicated supply chains of the future in terms of sheer logistics, is their global nature. What retailers call “the last-mile”—the final delivery destination that goods must make from warehouse or the transportation hub is becoming a growing problem, especially in urban areas, as customers need fast and flexible deliveries. With smaller, last-mile distribution centers being built no farther than six or nine miles from major metropolitan areas, the work of delivering packages can be done by a combination of traditional shipping as well as autonomous vehicles and even drones. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here. 1696-1718. https://doi.org/10.1108/IJOPM-02-2016-0080, Copyright © 2016, Emerald Group Publishing Limited. What businesses then have is a permanent record of a product’s journey along the supply chain that provides everything from location to the time of arrival, and even all environmental conditions throughout the journey. The demographics as well as other behavioral information in that location determines how and what will be stocked, and this information can be changed depending on shifts in behavior or external factors. (School of Business, Management and Economics. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice. All Rights Reserved, This is a BETA experience. Supply chain technology trends also heavily feature robotics, IoT, and blockchain, which are all projected to make the supply chain … 36 No. The Digital Supply Chain Model. Ultimately, automated vehicles and drones may also help retailers dramatically cut the cost and burden last mile delivery has on infrastructure. You may opt-out by. New supply chains may emerge and evolve for a variety of reasons. I am currently an Industry Strategy Lead for the Supply Chain department at Esri where I use Esri’s ArcGIS platform to conduct spatial analysis, supply chain freight optimization, and transportation analysis. There has been a lot written about blockchain technology lately, but sometimes it can be difficult to simplify exactly what it is and how it benefits companies and their customers. (Department of Operations and Supply Chain Management, China Europe International Business School, Shanghai. Understanding the supply chain lifecycle and how supply chains evolve provides new perspectives for contemporary supply chain design and management. This supply chain model is well suited for businesses with commoditized products, such as cement and steel. There are several new and emerging ways that businesses are transforming their supply chains to meet modern customer demands. Supply chain has been a passion of mine for the past 10 years, and I have extensive experience and knowledge within the academia world and as a business adviser in supply chain and logistics. As supply chains evolve, they are moving from a purely functional, physical system to a global and interconnected network of assets, data and processes. More than half of retailers offer same-day delivery, however customers still expect these products at the same cost. International Journal of Operations & Production Management, Supply chains evolve and change in size, shape and configuration, and in how they are coordinated, controlled and managed. A retailer can therefore use AI to predict which products are more cost-efficient to stock in a certain warehouse based on its proximity to certain areas.