The COVID-19 pandemic felt like the breaking point for the global supply chain. From shipping delays and manufacturing slowdowns to minimized warehouse management, endless issues put pressure on supply chain managers at once. However, while COVID-19 certainly escalated supply chain problems, in part due to complete factory shutdowns and international policies that limited cross-border travel, many core issues were already taking shape at a smaller scale.
The fact that many supply chain problems already existed pre-pandemic can be a reason for hope. In the years that warehouses increasingly worked at max capacity, the supply chain world has seen numerous technological advances that can bring traditional processes up to date.
In this article, we’ll explore how new developments — including artificial intelligence and automation technology — can mitigate the pain points that were exasperated by the pandemic and help us overcome today’s supply chain issues.
Expedite Shipments Through Automation
When your employees are fully responsible for executing the shipping process, it’s hard to guarantee a consistent level of efficiency. Even quality can be difficult to control since human error is only natural. But with many warehouses already overloaded with work (and running behind), mistakes can keep the world in a never-ending cycle of supply chain issues.
Automation is key to expediting the shipping process. When customers place orders, automation software and equipment can instantly place orders in a queue, then perform key tasks like packing and inventory management. Automation allows these simple tasks to be completed faster with fewer errors.
Some new software is even helping manufacturers automate the process of booking freight train service providers, allowing shipments to move more smoothly from Point A to Point B. As modern tech is implemented more across the supply chain, present issues may soon become last year’s news.
Reduce Reliance on Manpower
Shipping is a huge factor in the delays that began with COVID-19, but it isn’t the only bottleneck in the supply chain that modern technology can automate. Artificial intelligence can greatly reduce reliance on manpower for suppliers, distributors, manufacturers, and more. As the COVID-19 pandemic has made clear, employees calling out sick or resigning can be a critical issue if you can’t keep the supply chain running without their help.
When applied to supply chain management, AI can increase operational efficiency by replacing and improving upon human skills. For instance, in the manufacturing and operations process, AI can train itself to eliminate risks, which allows for steady improvements across the broader supply chain.
Adopting AI allows you to drastically reduce your spending on low-value tasks. However, this doesn’t mean that employees will be left out of work. As AI technologies reduce the need for manpower in areas that can directly cause supply chain failure, employees will have more time to take on more complex parts of supply chain management (like product planning).
According to the Harvard Business Review, most workers are actually optimistic about automation and its ability to boost safety, productivity, and product quality.
Protect Your Company’s Future
One of the biggest threats to the supply chain is the rise in cyberattacks. Many modern hackers aim to compromise business supply chains to target thousands of customers at once. Though the threat of hackers often feels less immediate, a single cyberattack costs an average of $200,000, which is more than enough to shut down a small business.
The good news is, technological advancements in the supply chain world are increasingly helping businesses future-proof their IT systems. For instance, DeVry University predicts that privacy-enhancing computation will strengthen data security by limiting data sharing, while new digital architecture like cybersecurity mesh will offer a better virtual defense than traditional firewalls.
As cybersecurity systems continue to evolve, businesses can better ward off IT disasters — which will be particularly important as many supply chain processes become digitized.
Improve Decision-Making With AI
When analyzing supply chain issues, it’s easy to pinpoint where poor decisions were made in hindsight. While it’s true that it’s impossible to predict the unpredictable — for instance, how a global pandemic or a natural disaster will impact the supply chain — it is possible to fortify the future of the supply chain by making smarter choices from day to day.
According to DeVry University, the rise of decision intelligence, which analyzes patterns in data, can help supply chain managers make the best possible choices. By backing up every decision with analytics, supply chain professionals can strategize without any biases.
A Smooth Supply Chain Is in the Future
The pandemic may have escalated global supply chain issues, but the end may be near. Thanks to advancing automation, AI, and cybersecurity technologies, the most problem-ridden parts of the supply chain can run more efficiently and with minimal errors. As supply chain managers start implementing new tech on their own teams, supply chain issues can steadily resolve themselves.