In the fast-paced world of supply chain management, agility, and efficiency are no longer just order winners—they’re order qualifiers. Traditional software development approaches often fall short, struggling to deliver the speed and flexibility required. To address these challenges, companies increasingly turn to low-code platforms, which promise rapid application development, integration flexibility, and significant cost savings. But what does this look like in practice? Let’s explore how low-code platforms are making a tangible impact on supply chain operations.
What is Low-Code and How Does It Work?
Low-code platforms are tools for building software. They simplify the process by offering pre-built modules and visual interfaces, such as drag-and-drop tools, that make application development much faster and easier. Think of it as assembling a custom product using ready-made parts rather than crafting everything from scratch. This means that professional developers and even business users without much technical knowledge can create apps that meet their needs.
How It Works:
Low-code platforms provide a library of components—forms, buttons, workflows, and data connections—that you can piece together like building blocks. When something more specific or complex is needed, developers can add custom code to tailor the application precisely. This hybrid approach combines the ease of drag-and-drop simplicity with the power of coding when necessary.
Difference Between Low-Code and No-Code:
The key difference lies in flexibility and target users. Low-code platforms allow for customization with code, making them versatile and suitable for more complex tasks. In contrast, no-code platforms are designed for simplicity, where everything is done through configuration, with no coding required. No-code is great for simpler, more standardized tasks, but low-code provides the balance between ease of use and the ability to tackle more sophisticated and complex projects.
The Low-Code Revolution: By the Numbers
The rise of low-code platforms is not just a passing trend; it’s a movement that’s reshaping how businesses operate. According to Gartner, by 2024, low-code application development will be responsible for more than 65% of application development activity. Similarly, KPMG reports that more than two-thirds of enterprises have already integrated low-code solutions into their supply chains. This growth is fueled by the need for faster, more efficient development processes, especially in supply chains where time is often of the essence.
So, what tangible benefits can companies expect from using low-code platforms? According to Forrester, low-code development can accelerate application delivery by up to 10 times compared to traditional coding methods. Additionally, businesses using low-code platforms have reported a 30% reduction in development costs, underscoring the significant economic advantages of this technology.
Real-World Examples: How Companies Are Leveraging Low-Code Platforms
Siemens:
In 2018, Siemens acquired Mendix to accelerate its digital transformation efforts across its global operations. Facing challenges from a fragmented IT landscape that relied on disparate systems and bespoke solutions, Siemens sought to streamline and standardize its software development processes. By implementing Mendix, Siemens empowered its employees across various departments to quickly develop and deploy over 500 applications, now used by more than 240,000 users globally.
This initiative led to significant improvements in operational efficiency, enabling Siemens to reduce development timelines and better meet the demands of its business units. One of the standout applications, the Material Supply Manager, optimized shopfloor logistics by integrating IoT sensors and AGVs (Automated Guided Vehicles), resulting in substantial annual savings and recognition within the company. However, the journey wasn’t without challenges, including the need to secure organizational buy-in and maintain consistency across a large-scale rollout.
Rossmann:
Rossmann, Poland’s leading drugstore chain with over 1,500 stores, faced significant challenges in maintaining efficient logistics across its widespread network. To address these challenges, Rossmann turned to OutSystems, a low-code platform, to modernize and enhance its logistics systems. Among the 25 applications developed using OutSystems, the “S-Hub” logistics app stands out as a mission-critical solution.
The S-Hub app, deployed at Rossmann’s central distribution warehouse, plays a crucial role in scanning and managing incoming and outgoing deliveries, ensuring that products reach the correct stores on time. However, the transition to low-code wasn’t without hurdles. Convincing experienced developers to adopt this new approach required a careful, step-by-step strategy. The team had to prove that low-code could handle not just simple apps but also complex, business-critical systems.
Practical Applications of Low-Code in Supply Chain Management
Let’s dive deeper into specific areas where low-code platforms can make a positive impact on supply chain operations:
- Automating Order Processing and Warehouse Management: Low-code platforms can be used to develop applications that automate repetitive tasks like order processing and some tasks in warehouse management. For example, a logistics company could create a custom app that automatically processes incoming orders, updates inventory in real-time, and generates pick-and-pack lists for warehouse staff.
- Enhancing Real-Time Supply Chain Visibility: Supply chain managers need instant access to critical data to make informed decisions. Low-code platforms enable the creation of dashboards and tracking tools that provide real-time visibility across the entire supply chain. These tools can consolidate data from various sources, including IoT devices, GPS trackers, ERP systems, and even third-party APIs like the FedEx API, to give a comprehensive view of the supply chain.
- Facilitating Integration Between Disparate Systems: Logistics companies often use a mix of different software and hardware solutions, which can lead to data silos and inefficiencies. Low-code platforms enable the integration of these systems, fostering a smooth flow of information across the supply chain.
- Enabling Mobility for On-the-Go Access: Many logistics tasks require mobile solutions that provide on-the-go access to information. Low-code platforms make it easy to develop mobile apps that enable logistics staff to access critical data, complete tasks, and communicate with the rest of the team from anywhere. For instance, delivery drivers could use a low-code mobile app to capture proof of delivery, report issues, and communicate directly with dispatchers, all from their mobile devices.
- Empowering Domain Experts in Application Development: Low-code platforms empower logistics professionals with domain expertise to participate in the development process, reducing the dependency on IT specialists and accelerating the deployment of new systems. For example, a warehouse manager with extensive knowledge of daily operations could use a low-code platform to develop a custom app that plans short and long-term capacity in terms of FTE (Full-time Equivalent) and MHE (Material Handling Equipment). This app could be tailored to the specific needs of the warehouse manager by balancing accuracy and simplicity.
Conclusion
Low-code platforms are becoming an essential tool in today’s fast-moving business environment, especially in supply chain management. They offer a blend of speed, flexibility, and efficiency that traditional development methods can’t match. With low-code, businesses can quickly adapt to changes, streamline their operations, and innovate without the heavy investment of time and resources typically required for software development.
However, embracing low-code isn’t without its challenges. Ensuring that these platforms scale effectively, remain secure, and are adopted smoothly across an organization requires careful planning. Companies need to establish strong governance, provide proper training, and choose the right platform to meet their long-term needs. As low-code continues to evolve, especially with the integration of AI and machine learning, its role in transforming supply chains—and business operations more broadly—will only grow, making it a key part of the digital future.
Explore more about Cybersecurity, AI, Blockchain, and other technologies in supply chain management: Secure Your Supply Chain: Strategies to Combat Cyber Threats, AI-Enabled Supply Chain Simulations for Risk Management, The Transformative Power of AI in Supply Chain Management, How IoT, AI, and Blockchain Can Create a Sustainable Supply Chain, IoT: Enabling Sustainable Shipping and Warehousing, Quantum Computing in Supply Chains: Future Impacts.