Covering Disruptive Technology Powering Business in The Digital Age

Written by: Izzat Najmi, Journalist, AOPG.

The intricacy and significance of supply chains to our societies and economies were brought into sharp focus by the recent pandemic and magnified further with inflationary pressures as well as other ongoing global events.

The news has been dominated by reports of a lingering pandemic and a global geopolitical confrontation. Both the frequency and severity of extreme weather events and the accompanying concerns about their impact on the environment are on the rise. Inflation is predicted to hit record highs, presenting a new challenge for today’s corporate executives. Boards and C-suites have prioritised risk management and supply chain management as a result of increased uncertainty.

Thus, in 2022, leaders in the supply chain may find themselves in a number of new roles, including hero, villain, confidant, and counsellor, with correspondingly greater authority and responsibility. New risks and possibilities present themselves to Chief Supply Chain Officers (CSCOs) as they strive to meet rising expectations for sustainability, agility, and value generation.

According to IBM, CSCOs predict that supply chain disruptions, technological infrastructure, sustainability, and market upheavals will be their top difficulties during the next two to three years. However, when approached with an optimistic outlook, problems can become possibilities within the company, as well as a source of public attention. CSCOs now have the knowledge, freedom, and organisational authority to innovate into a data-led future thanks to an increased emphasis on supply chain capabilities and roles.

Artificial Intelligence Spearheading the Future of Supply Chain

IBM, through the 26th edition of the IBM C-Suite Study, found that Artificial Intelligence has become the primary focus as the solution for the future of the supply chain. Connectivity with partners and suppliers, as well as sustainable operations and predictability, are two key reasons why CSCOs are using AI and automation technology. Based on the study, nearly half (47%) of the CSCOs polled reported implementing new automation technologies in the previous two years, a strategy that can increase supply chain operations’ predictability, flexibility, and intelligence; these businesses are also utilising AI to better measure and monitor performance.

Black swan disruptions can come from any direction, therefore CSCOs will need to have a high level of organisational awareness to maintain equilibrium. Synergy and predictability can be achieved through the use of AI and intelligent processes, which can provide a complete picture of the situation as well as an analysis of its potential impacts. Workflows like these can enable both digital and human workers to dynamically learn from their experiences and fine-tune their performance in response to new circumstances. In addition, automation, from chatbots to robotics, is crucial.

Kuntha Chelvanathan, APAC Supply Chain & Procurement Transformation Leader, IBM Consulting, said, “At IBM, AI has been one of the core technologies to help monitor and track the performance of our supply chain automation efforts for these companies.”

In a world where supply chains are getting more and more sophisticated and at the same time, becoming widely global, AI is set to be a game changer that may provide much-needed order to an ever more chaotic process. Global supply chains are growing at an exponential rate, increasing the pressure on businesses to improve their competitiveness through streamlined processes. The supply chain industry can benefit greatly from AI’s speed and accuracy. Through the use of automation, productivity and efficiency can be skyrocketed and at the same time, drastically reduce costs.

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