The World Economic Forum identified automation of supply chains to be one of the biggest changes supply chains will face. Business will make decisions based on global events, supply chains and technological advancements. How do you win in this rapidly evolving digital era?
Images of the blockage of the Suez Canal by the Ever Given containership in March 2021 reached news bulletins the world over, highlighting the vulnerabilities in global supply chains, heightened during the COVID-19 pandemic. Despite assumptions of advanced technology driving supply chains, much of the work still relies on human input via basic tools like Excel sheets.
While manufacturing has achieved significant efficiencies, supply chains still offer substantial opportunities for improvement through automation.
Flow: The Future of Supply Chains
The future of supply chains hinges on the concept of “flow,” which involves the seamless movement of goods and data, powered by AI and machine learning. This shift will require managers to trust machines with decision-making tasks traditionally handled by humans, such as adjusting order quantities in response to changes in lead times. Automation will link various supply chain components, optimizing efficiency and reducing manual intervention.
Predictive Capabilities as a Strategic Advantage
Supply chains that can predict and respond to disruptions will gain a competitive edge. The ability to forecast changes, such as supplier delays or price fluctuations, will significantly enhance productivity by reducing waste and improving resource management. The COVID-19 pandemic has accelerated the need for such predictive tools in supply chain management.
Harnessing Data for Smarter Supply Chains
Companies can leverage data from transactional systems and real-time news to identify weak points in their supply chains. For large, complex supply chains, this ability to focus on critical issues is transformative. Future supply chains will likely see machines autonomously adjusting production and shipment schedules based on continuous data streams, further enhancing efficiency.
Automation: The Path Forward
The pandemic’s economic disruptions have pushed companies toward automating supply chain planning. Predictive analytics is becoming essential as businesses seek to mitigate the risks of delayed shipments, rising costs, and extended lead times. Technologies like Convoy, which optimizes freight transport, exemplify the benefits of AI-driven supply chain solutions. As automation advances, human roles will shift towards interpreting data and making strategic decisions.
What Next?
The COVID-19 pandemic inflicted trillions of dollars in losses globally, exposing the fragility of supply chains as companies struggled with border closures and disruptions. Since then, businesses have started turning to AI to automate supply chain planning. Predictive analytics is gaining traction as companies seek to avoid the financial setbacks caused by delayed shipments, rising raw material costs, and extended lead times. Technologies like Convoy, which optimizes freight transport by allowing independent truckers to choose profitable loads, are improving the flow of materials.
The World Economic Forum’s TradeTech report highlights how AI, IoT, and emerging technologies are enhancing supply chain visibility and coordination. As automation advances, real-time data will allow continuous adjustments in supply chain responses. While humans will still play a role, new analytical skills will be crucial in navigating these smarter, more predictable systems, providing stability in an increasingly uncertain world.
Click below to read more: https://www.weforum.org/agenda/2021/05/supply-chains-are-on-the-cusp-of-a-data-fed-revolution-here-s-how/
Embrace the opportunity to reinvent yourself and propel your organization towards a prosperous digital future. Be a key player in the Supply Chain Revolution with the right qualifications: https://next.lk/msc-digital-supply-chain-management/
