4 Emerging Technologies to Help Your Small Business Transform its Supply Chain Management | HackerNoon

Managing supply chains can be one of the most costly and labor-intensive hurdles for small businesses to overcome. Even at a time when unforeseen issues like weather, regulatory changes, and supplier communications aren’t hampering your efficiency, inventory management can be a struggle.

However, innovations in supply chain management thanks to emerging technologies like AI and blockchain are helping companies of all sizes develop a more comprehensive overview of their suppliers, fostering more conducive relationships along the way.

With the global AI in supply chain market projected to rally to a value of $157.6 billion by 2033, representing a seismic CAGR of 42.7% over the next decade, there are positive signs that the artificial intelligence revolution will develop use cases away from the domain of large multinational corporations over the coming months and years.

For small business owners, digital transformation is a necessity in maintaining an efficient and cost-effective supply chain, and these four innovations are set to help your endeavor overcome the challenges of handling multiple suppliers in a sustainable way:

Unlocking the Power of Data

Artificial intelligence is paving the way for a big data revolution throughout supply chain management, and this is empowering more small businesses to achieve efficiency in keeping on top of their inventories.

Through the mining, interpreting, and sharing of big data, you’ll be capable of developing a more comprehensive overview of your inventory, bolstering your fulfillment rates, and building more positive relationships with both your suppliers and customers.

Artificial intelligence and machine learning (ML) algorithms can provide more power than ever before in driving predictive analytics. These data insights can be used to predict future trends, identify possible problems before they develop, and access actionable advice on how to overcome them.

Machine learning algorithms can lean on structured and unstructured data feeds like weather forecasts, satellite imagery over supplier inventory levels, and breaking news throughout social networks to act faster and offer you more agility in avoiding supply chain disruptions.

AI-Powered Accounts Payable

Accounts payable is a major part of supply chain management for small businesses, and the ability of AI tools to drive AP automation is set to boost the relationships between your company and every component of your supply chain.

We’re already seeing several use cases emerge in AI-powered AP automation, and many of the solutions feature some form of autonomous capabilities to improve efficiency and save time on manual processes.

One leading use case involves utilizing AI for invoice classification, in which ML algorithms can learn from past invoices to automatically classify new invoices based on signifiers like vendor name, amount specified, date, and other key metrics. This can eliminate the need for manual review and data entry for each document.

AI is also paving the way for intelligent invoice extraction and data capture from unstructured documents like PDFs and emails with the help of computer vision and natural language processing. This allows you to focus valuable employee output elsewhere.

Embracing Blockchain

Over the coming years, blockchain technology is expected to shake off its cryptocurrency connotations to become a driving force in supply chain management. Built on a distributed digital ledger, blockchain has the potential to deliver unprecedented levels of trust, transparency, and traceability throughout the supply chain for businesses and suppliers alike.

Because blockchains are immutable and decentralized, they’re virtually impossible to manipulate or tamper with, meaning that you’ll be capable of tracking your inventory from origin to end-user, paving the way for a far more compliant and authentic experience without the risk of counterfeiting or unaccountable low-quality components.

Crucially, blockchain technology is also known for its ability to support smart contracts, which can self-execute transactions based on the fulfillment of pre-determined requirements. This means that payments to suppliers can be automated the moment received shipments pass your quality control checks.

Driving Compliance and Sustainability

Whether you’re seeking to grow your small business with a focus on ESG commitments or are aiming to maintain a strong emphasis on compliance throughout the jurisdictions of your supply chain operations, embracing sustainable practices can be an excellent means of keeping on the positive side of regulators throughout every step of your supply chain.

According to Capterra’s Supply Chain Management Trends Survey, 80% of SMB supply chains plan to increase or continue to invest in sustainability efforts over the next several years, and emerging technology can help support these initiatives.

Machine learning, powered by artificial intelligence insights, can be a positive force for small businesses seeking to build a more sustainable outlook for their operations moving forward. ML algorithms have the ability to vet prospective suppliers by assessing factors such as their energy consumption, waste management, labor standards, and fair trade practices. This can not only help your ESG initiatives but also keep your business safe from regulatory scrutiny.

ML can also monitor for regulatory changes in compliance obligations surrounding your various jurisdictions to alert you should new requirements mean you become non-compliant in certain areas of operation.

Finding Efficiency in Automation

Technologies like artificial intelligence, machine learning, big data, and blockchain can unite to deliver greater efficiency across small businesses and provide fast and cost-effective solutions where lingering challenges can lead to significant problems between yourself, your suppliers, and regulators.

As use cases grow, more small businesses are learning that these powerful technologies aren’t simply at the disposal of multinational corporations, but can be accessible for SMBs and even startups.

For all small businesses operating with a supply chain, there’s never been a better time to embrace automation technology to drive better efficiency between yourself and your suppliers. In doing so, you can save valuable time and money that can be better invested in the growth of your company.