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  April 26th, 2024 | Written by

Supply Chain: Challenges and Key Solutions 

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No business can exist without a supply chain! Supply chains are the nerves of the business ecosystem. Supply chains are responsible for carrying raw materials to manufacturers and goods to retailers, merchants, and customers. The supply chain improves efficiency, reduces costs, and provides better customer service. The supply chain also looks after quality control and inventory management. It improves the financial position of the company. 

Although the business is driven by the supply chain, there are several challenges to it. Major challenges include labor shortages, rising costs, cyber security, delays, demand, centralized inventories, raw materials scarcity, supply chain disruptions, climate conditions, the safety of workers in the supply chain, etc. Out of all the challenges, few like climate conditions are out of human control, yet we can take preventive measures to minimize the effect of it. 

Using technology we can solve challenges like the safety of workers in the supply chain. The drive recorder is the device to records video footage of the vehicle while on the road. This device captures real-time audio and video and keeps track of the vehicle’s activity. Technologies like GPS, and AI-integrated OBD telematics monitor the driver’s actions via remote access in real-time. According to the Consegic Business Intelligence report, Drive Recorder Market is estimated to reach over USD 11,765.58 Million by 2030 from a value of USD 4,874.53 Million in 2022, growing at a CAGR of 11.9% from 2023 to 2030. This shows that more companies are considering fleet and driver safety. 

Also, AI in the supply chain can help with planning, and managing the inventory. It can also forecast the demand based on the data available. AI-integrated OBD Telematics devices also help in monitoring the fleet path and suggest several actions to avoid possible accidents. 

AI when combined with video surveillance gives rise to automotive camera modules. Automotive camera modules are estimated to reach over USD 8,498.90 Million by 2030. These modules play a crucial role in vehicle monitoring to ensure vehicle and personnel safety. Out of the total market share of automotive camera modules around 35% is of commercial vehicles.

With new technologies like AI, cybersecurity, OBD Telematics, and Sensors can improve the management and flow of the supply chain. It also improves efficiency, reduces costs, improves customer experience, reduces delays, etc. Even with the technological advancements in managing the supply chain, there is a long way to go ahead.

Kushal is a professional Content Writer at Consegic Business Intelligence with expertise in the Automotive Services Industry.