The Metaverse is about to dramatically change the way we live and work, so what problems can it solve in supply chain management?
Defining exactly what metaverse is can be tricky as the term is still evolving, but some key characteristics can be used to understand its benefits.
Ultimately, a metaverse is designed to seamlessly integrate virtual content with physical reality in an immersive experience and often involves communicating with other people through virtual or augmented reality (VR/AR) technology.
Additionally, users are represented by customizable avatars, and the environment and objects within it also remain consistent when interacting with them.
A metaverse also allows users to own, borrow, buy, sell and trade and this will only evolve as technology does, allowing for an infinite number of metaverses.
But if it is virtual, how will that help supply chain management?
While it may seem like there are no apparent connections between the metaverse and the physical world, there are many ways it can be used to affect and shape the future of the supply chain.
Additionally, operating a business in a metaverse environment will soon become commonplace, and getting a head start now will save you a lot of hassle later.
In fact, according to Accenture’s Technology Vision 2022 report, 78% of supply chain leaders say they intend to partner with others in the next three years and 57% plan to invest in technology or startups.
Accenture research also revealed that 64% of supply chain leaders believe the metaverse will have a positive impact on their businesses.
The biggest benefits the metaverse will bring to the supply chain include:
- Significant changes in how organizations balance demand and supply
The immersive nature of the metaverse will foster a better understanding of the demand for an organization’s offerings as it will interact more with customers and have more visibility into them during the buying process.
This will empower supply chains to replace instances where demand is poorly forecasted with highly accurate data that can be used to create stronger customer experiences and generate new opportunities to delight customers as well as forms of value. customer.
When it comes to procurement, combining AR and VR with real-time, multi-source data can provide more robust visibility into supply chain processes and facilities and attributes such as inventory and capacity.
Also, thanks to the metaverse, being in a different room, building, or country won’t matter, as it will allow everyone involved in the supply chain to collaborate and make decisions faster and more solid.
- Accurate data for planning and information
With the metaverse fostering a more personalized and automated world, humans will be handed the reins to more easily and richly dictate what they see, interact and experience.
As a result, organizations will also be able to build and deliver these experiences. And it all starts with the products.
Physical products will evolve beyond their passive role in the supply chains where they are planned, produced and shipped to become actively involved in influencing how they are made, delivered and enjoyed beyond their selling to a customer by learning, observing and operating independently.
- The ability to effectively solve complex supply chain challenges
Using the Metaverse will solve supply chain problems that once used up valuable time and resources or were even completely unsolvable.
Supply chains have traditionally been forced to use historical data that cannot be used for anything else because it is so specific to the environment and events that generated it.
This has caused problems with planning, forecasting, staffing and a range of other important activities, because the way the data is used is different from the original context in which it was collected. .
The Metaverse will deliver new levels of supply chain data as it empowers organizations to use synthetic data to model and plan scenarios, providing greater accuracy in plans and forecasts.
- Significant product development
Unprecedented computing power is required to create a metaverse, and it is this power that will solve the biggest supply chain problems to date.
For example, supply chains typically approach inventory optimization or S&OP by separating processes into smaller components, partly to mirror organizational structures, but also to make it easier to manage a computer.
The computing power designed to create the Metaverse will solve these problems without separating processes, instead using previously non-existent capacity to allow companies to remove the boundary between planning and execution.
Moreover, it will allow users to see the complete supply chain from suppliers to end customers, which will constantly balance supply and demand in real time.
By overcoming the constraints of today’s computing power, supply chains will be able to operate more cost-effectively, always meeting customer demands and enabling greater resilience and sustainability.