The supply chain solutions sector is witnessing heavy investments in research and development, particularly in the application layer and platform level technologies. Major providers, such as Blue Yonder, are investing significantly in platform-level solutions, viewing it as a core competitive differentiator.
The shift from monolithic architecture to microservices has been driven by the increasing complexity of software and the rise of cloud computing. Microservices offer several advantages, including the ability for developers to work in specialized groups, speeding up development and leading to more frequent software releases. This architecture also improves upgrades and allows for the assembly of new composite applications.
The Double-Edged Sword of Microservices
However, the transition to a new platform can initially be challenging for customers, leading to what Blue Yonder executives refer to as a “cliff event,” where the new solution initially offers less functionality than the previous application. To avoid this, Blue Yonder is gradually transitioning its supply chain applications to a mix of traditional software code and microservices, ensuring each release offers new functionality.
Microservices also open new sales opportunities. For instance, Blue Yonder has created a microservice for transportation optimization, which can be sold as a standalone component and layered onto a legacy TMS or control tower.
The Future of Microservices in Supply Chain Solutions
The microservices architecture also allows for the creation of innovative new functionality due to the seamless integration of components on a shared platform and data model. This has led to the development of clever new functionalities that break down disconnects between planned and executable actions.
Manhattan Associates, for example, has been gradually releasing microservices-based applications. It was not until all of these applications were microservices-enabled that we started to see the kind of innovative new functionality that breaks down disconnects between what was planned and what can be executed.
In summary, the shift towards microservices architecture in supply chain solutions is creating a paradigm shift, offering numerous advantages but also posing challenges. As the sector continues to evolve, companies that can successfully navigate this transition will be well-positioned to lead the way in supply chain innovation.
