Bean counters at Gartner have added up some numbers and divided by their shoe size and worked out that AI, IoT and automation are the areas businesses must adopt if they are to boost the efficiency of their supply chains.
Gartner research vice president Christian Titze seems somewhat inevitable that AI will play a vital role in enabling business leaders to automate processes such as demand forecasting, planning production volume needs and equipment maintenance predictions to ensure the production line can cope with demand.
“These technologies are those that supply chain leaders cannot ignore. Within the next five years, if half of the large global companies are using some of these technologies in their supply chain operations, it’s safe to say that the technologies will disrupt people, business objectives and IT systems.”
He said that the Internet of Things (IoT) is likely to have the most significant impact on elements of the supply chain including logistics management, customer service and supply availability.
Titze’s report said businesses were already starting to use IoT to connect physical objects such as containers with embedded technology to track their whereabouts and offer customers insights into the condition of shipments.
“AI supports the shift to broader supply chain automation that many organisations are seeking. AI can enhance risk mitigation by analysing large sets of data, continuously identifying evolving patterns, and predicting disruptive events along with possible resolutions”, Titze wrote.
His report mentions the increased use of Robotic Process Automation, autonomous devices (think drones and vehicles), Digital Supply Chain Twins (digital representations of physical elements of the supply chain), an increase in immersive experiences and Blockchain of a way of enhancing traceability, automation and security.
