More technology is needed to assist humans
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More than three-quarters of supply chain executives are unprepared to observe and anticipate changes that could disrupt the flow of business. Part of the problem is that much of it isn't automated. These professionals report that he spends nearly 14 hours a week manually tracking inventory and shipping data.
That's the quote from a survey of 250 supply chain, inventory and planning executives conducted by LeanDNA in partnership with Wakefield Research.
While most supply chain executives plan to increase investment in proactive supply chain management (92%), more than three-quarters (76%) currently rely on signals coming in from key points in the process. They do not have the perspective to interpret and predict supply and demand. .
For example, “If a maintenance failure is predicted, where does that signal go?” asks Paul Noble, founder and chief strategy officer at Verusen. “That baton has to be passed from the sensor to an intelligent system that can disconnect transactions and disconnect orders in the same way. These automated systems need to alert each other about upcoming needs.”
But in the absence of predictive data, “companies are operating as if they had no data at all,” say the authors of the LeanDNA study. More than 9 in 10 supply chain executives (92%) make intuitive decisions sometimes or more often because their reports don't include guidance on forecasting.
There is general agreement that intelligent tracking and management is not yet a reality across the supply chain sector. Many companies rush to technology and automation without considering where value can and should be delivered.
“There is a lot of talk about automation and AI technology, but many are uncertain about how to proceed,” says Scott Marsick, group product manager for robotics at Epson Americas. “There is no reason for companies to try to boil the ocean and do it all. For automation to be effective in the long term, there is no substitute for a crawl, walk, run approach. Identify, build internal capacity, prove the concept, and then scale up. It’s a winning approach that pays dividends.”
Digital twin technology that replicates supply chain processes and movements could play a key role in ensuring better predictive capabilities. LeanDNA research shows that more than a third (37%) of executives are implementing digital twins and other simulation technologies, and more than a quarter (26%) are using enterprise resource planning to add functionality. I see that you are adding software.
Dan Mitchell, global director of retail and CPG at SAS, agrees that digital twins will play an important role in supply chain intelligence. “Digital twins allow supply chain professionals to ask, 'What would happen if we created a hypothetical disruption to the system?' and see how it would react. , supply chain professionals can test their resilience.”
In the LeanDNA survey, more than four in five leaders (82%) agree that real-time data that doesn't provide actionable insights for decision-making is a waste of time and energy. While 82% report having some real-time view of supply and demand, fewer than one in four (24%) have a predictive view.
AI has great potential to help organizations stay on top of the movements of people and objects. “AI helps organizations understand data and trade signals of demand up, down, or across the supply chain.Trading across these technologies from a supply chain perspective involves It involves trading,” Noble said.
Supply chain executives in the LeanDNA survey said having real-time data to inform business decisions would improve logistics and inventory management (47%), identify changes in demand (45%), and enhance collaboration (44%). states that it is possible.
“When we think about the necessity of AI in the supply chain, we need to look for the gap between the digital supply chain and the physical supply chain,” says Mitchell. “Where there is no real-time data, there is an opportunity for automation.”
“If your company doesn’t have the real-time data and skills you need, there are plenty of partners and vendors who can help,” continues Mitchell. “For example, think about where you buy transportation services, factory equipment, and distribution center systems. Today, they are all smart devices equipped with IoT sensors that generate a wealth of information that can be used. These same vendors , which can connect you to training opportunities and partners within the broader ecosystem that can help fill skills gaps.”
Barriers to using real-time data for supply chain management include current technology stacks not supporting real-time data (44%) and lack of staff skills and training (55%). And upgrading the tech stack doesn't seem to be an option. 48% report that their current systems are too pervasive, and a further 26% believe their organization cannot tolerate implementation disruptions.
The goal is to provide a clearer view of what's happening across supply chain operations and data exchange. However, only two in five he/shes (41%) are increasing their supply chain visibility, especially when it comes to preparing for the next disruptive event.
“Technology is important. Make no mistake about it,” says Epson's Marsick. “Unfortunately, however, there is no one silver bullet to address operational challenges. No two operations share exactly the same operational pain points, so solutions will vary from company to company.”
“Whether it's AI or robotics, technology, if applied correctly, can have a positive impact on making any business more efficient, resilient and ultimately competitive,” Marsic says Mr. “And at the end of the day, that’s what we all want: that ‘edge’ that keeps you at the top of your game while simultaneously protecting against short-term and long-term risks. ”
Supply chain networks and operational staffing also continue to be an issue, according to LeanDNA research. Just over a third, 36%, are reskilling employees and 32% are partnering with third-party logistics experts.
“Automation is a great tool to help supply chain operators overcome labor challenges, but the implementation process requires careful consideration and planning,” advises Keith Fisher, president of Honeywell Integrated. Masu. “To achieve optimal performance, advanced automation and robotic systems must be seamlessly integrated with existing software and control systems. Additionally, with strained labor resources, work must be performed in parallel with automation systems. It has become more important to retrain our employees to deliver.”
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