Author: Aryan Kulkarni at NITISARA
INTRODUCTION
As the global trade continues to expand at unprecedented rates, the level of sophistication in the softwares offered for improving the ease and efficiency of supply chain management (SCM) keeps rising at a rapid rate, along with the number of service providers, engaged in fierce competition for making a more refined product. The lack of customization and incompatibility with modern systems in legacy softwares often serves as a major hindrance to the companies involved in continuously operational functions like those in SCM. A Reuters report from 2021, depicts the major obstacles being faced by the employees in operating such programs with the leading reasons being – low integrability into existing systems, lack of modern automation and optimization tools, unavailability of latest algorithms and predictability, and an absence of user-friendly interfaces. Thus, a strategically directing entity is necessary in a SaaS organization to make up for these shortcomings, a role which is satisfied by product managers.
At the core, product managers are responsible for setting strategic direction, articulating the rationale behind initiatives, and connecting them with overarching product vision and organizational goals. This would involve meticulously evaluating and curating ideas, ensuring alignment with customer needs and product strategy, and navigating the complexities of feature prioritization by weighing the value they bring against business objectives. Furthermore, product managers play a critical role in defining and orchestrating releases through visual representations of product evolution and alignment with strategic objectives, by utilizing various tools made for that sole purpose. Especially for the supply chain softwares, several other additions and considerations have now come to the fore, for the product to be competitive. Few of those that were observed and explored by us were – sustainability-driven updates, using AI to attain a higher degree of automation in transactions like ordering, and smarter financing, contracting and crisis management methods.
ADDING THE FACTOR OF SUSTAINABILITY
The inclusion of a Green Information System (GIS) which ensures that the company complies with their ESG goals, has been increasing in popularity. As observed from various different products, the main functions that such a system serves are –
1. Spend-based and activity-based calculation of carbon footprint across Scope 1, 2, and 3 emissions using thousands of trusted emission factors. Product managers could be involved in collaboration with environmental experts and data scientists to select and integrate the right tool from the market depending on the accuracy and reliability of the data points considered in it, ease of usage and its compatibility with existing systems.
2. Providing an analytical platform and dashboard to monitor results and take actionable steps. Some of them also include a marketplace with verified pathways for reducing carbon emissions. The role of product managers is crucial in ensuring that the platform is intuitive, user-friendly, and empowers all levels of employees in the organization to make meaningful progress towards sustainability.
3. Calculation of energy consumption, greenhouse gas emissions, and air pollutants across all modes of transport and warehouses in the supply chain. Product managers are involved in the development of algorithms and models that calculate environmental impacts, considering factors such as net distance traveled by the vehicles owned or contracted by the firm, their fuel efficiency, and the modes. In the case of warehouses, factors such as electricity for heating or refrigerating products can be high, lightning, materials handling, lifts, offices, etc. would be covered (depending on the choice of API made as per the requirements of the organization).
4. Access to surplus goods marketplace which allows companies to buy and sell surplus goods to reduce waste and improve resource utilization. Product managers oversee the integration of features such as inventory management, pricing optimization, and transaction tracking, facilitating efficient and transparent transactions. Their leadership ensures that the marketplace aligns with sustainability objectives and promotes circular economy principles.
The findings from the 2022 research paper by Qu and Liu from the Journal of Cleaner Production, indicate that a well-developed GIS significantly assists in the development of green processes and products and can also help firms to obtain customer requirements and other types of information effectively so as to increase the positive impact of customer orientation on green process innovation.
AI – ASSISTED AUTOMATION OF PROCESSES
In today’s world, owing to the dynamic pace and gait of trade and commerce as well as to the uncertainties they present, the integration of advanced automation technologies is becoming increasingly imperative. Addressing this need, are some of the newer features which have been gaining popularity recently amongst the leading players in the SCM software market –
1. Smart Transport Management Systems (TMS) are central to the supply chains of companies involved in shipping, moving and receiving goods on a regular basis and play a decisive role in the planning, execution, and optimization of the physical movement of goods. TMS’ driven by artificial intelligence utilize sensors and telematic devices in vehicles to monitor driver conduct and effectiveness. These systems gather information on elements such as speeding, abrupt braking, and prolonged idling, allowing businesses to pinpoint areas necessitating enhancement, deliver customized training initiatives, and encourage safe and productive driving behaviors. This not only enhances driver efficiency but also boosts fuel economy, minimizes accidents, and decreases insurance expenses. Intelligent route optimization along with interactive tracking insights in the form of dashboards, visualizing key metrics like finished shipments, dwell time, total incidental spend, average facility rating, etc. are also coming up to be staples of the modern TMS. Thus, product managers would be required to scour through the vast market of firms offering seamlessly integrable APIs of these features, or would have to develop a structured roadmap for the firm to develop these features entirely by themselves. It has also become necessary to include live tracking of all the truckloads/freights in-transit and to have sophisticated accident handling features as in some cases even the slightest delays could be costly to the firm.
2. Intelligent contract builders offering customizability of commercial terms and configurable rules engine would help in determining terms like volume, rates, exceptions, free time and more between carrier and shipper and reconcile them according to actual performance if needed. Such tasks are highly time-consuming if not delegated to automation and hence, the guidance of product managers again becomes crucial to ensure that all the requirements of the firm are met and that employees are not having difficulty in using the system. It also falls on them to explore the role of cutting edge solutions such as conversational AI to further the ease and speed of contract management. Following that, an aesthetically pleasing dashboard with information for shipments, containers, supplier info, items, documentation (Bill of Lading, entry summary, delivery order and other commercial documents) and inventory management is also a feature that needs to be developed or integrated as it would enhance the speed of documentation within and outside the firm.
Product managers serve as strategic directors, responsible for setting the direction of product development, aligning initiatives with customer needs and organizational goals, and navigating the complexities of feature prioritization. Their role extends to orchestrating releases and ensuring alignment with strategic objectives through visual representations of product evolution.
CONCLUSION
In conclusion, the imperative for strategic product innovation within the supply chain industry has never been more evident nor more pressing. As global markets evolve at an unprecedented pace, fueled by technological advancements and shifting consumer demands, organizations must adapt or risk falling behind. Through this comprehensive exploration, it becomes clear that embracing innovation as a cornerstone of supply chain strategy is not merely advantageous—it is essential for survival and growth. By fostering a culture of creativity, leveraging cutting-edge technologies, and forging collaborative partnerships, businesses can navigate the complexities of modern markets with agility and resilience. In doing so, they not only meet the current demands of their stakeholders but also position themselves as pioneers in shaping the future of supply chain excellence. As we look ahead, it is evident that those who prioritize strategic product innovation will not only thrive but also lead the charge towards a more dynamic and sustainable global supply chain ecosystem.