APIs Will Bridge the Divide Between Proprietary Systems
A common concern in the age of the internet is loss of proprietary information. APIs overcome this risk by connecting relevant information and allowing companies to still retain proprietary information. Unlike EDI, APIs can integrate with virtually any systems. They run automatically and avoid the need to go through complex integrations, while still providing top-line performance. APIs rely on a series of calls between systems that share, delete, and edit data, without sacrificing the original data.
APIs are unlike traditional forms of connectivity; they are diverse and can used to connect even the most disparate of systems. As the world grows more in-sync with supply chains, connectivity via APIs will become the gold standard. APIs exist for the simplest of processes, including personal calendar integrations, but they also have the power to unify the supply chain in innovative ways. APIs can connect legacy systems with cloud-based TMS platforms, connect with more carriers, avoid the disruptions caused by COVID-19, and improve inventory management.
Inventory Management Integration Will Become Synonymous With Procurement
Procurement has always had a special place in the e-commerce supply chain, but as companies look to limit in-store visitors, procurement will now move more toward a warehouse process. For instance, Texas grocer, HEB, is now working to encourage customers to order through its curbside service, leveraging inventory from arriving trucks to fill orders in the wake of the coronavirus outbreak. The only way to achieve such inventory management capabilities lies in integration and procuring more product around the clock. The coronavirus is the latest risk to trigger a rapid overhaul of inventory management strategies, and shippers need to look beyond the limits of a simple system. They must implement and integrate the inventory management system with the procurement platform, as well as the TMS for use in routing inbound and outbound freight throughout distribution networks.
Microservices Will Promote Testing of Integration, Avoiding Possible Disruptions
Microservices are comparable to APIs, and they provide a temporary architecture for testing new systems and functionalities without opening the door to risks of disruption. Yes, testing in a live environment could cause significant problems in the global supply chain. A recent article, published by Ocean Insights, reviewed the costs of a single disruption on the global ocean freight stage. For example, if Electrolux closes a single plant for one day due an error in coding or testing, losses could swell into the millions of dollars per day.
Microservices allow for the rapid testing of new supply chain functions too. Since the coronavirus is already putting the strain on retailers, microservices will be a strong area of 2020 freight technology integration trends throughout the year. Furthermore, companies will look to test new fulfillment strategies, much like the HEB example, which may require reconfiguring of POS systems, inventory control systems, procurement, and outbound logistics planning.
Big Data Firms Will Leverage Integration to Drive More Value
Another integration trends will surround big data and its potential. Big data is valuable in its ability to gain insights into all aspects of the supply chain. Big data will help companies leverage collaborative robots, as explained by Supply Chain 24/7, and it will also go into the equation for the use of robotics process automation, says Steve Banker of Forbes, creating virtual, interactive experiences for customers.