What emerging technologies are you planning on integrating into your supply chain processes over the next year, and how are you preparing your employees for their implementation?
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Depending on the current state of your business, the definition of “emerging” can vary.
As for current implementations, several posts have identified the key new areas of focus (automation, artificial intelligence, etc.). We are researching and evaluating the effectiveness of these tools in the context of the next year to three years.
When it comes to preparation, general change management principles remain vital to the success of any business development (I.e. knowing your team, generating buy-in, creating an urgent group of stakeholders, etc.). At the end of the day, the best ideas and strategies behind these technologies should come from within your team and they can only be realized with effective change management & supportive team dynamics.
It's important to distinguish between physical and digital automation. Pre-pandemic, companies were focusing on automating buildings for handling a wide variety of items. During the pandemic, companies started booking up capacity for automation due to labor shortages. Post-pandemic, companies are considering the cost of physical automation versus digital tools like planning software, simulation, and modeling. We've been exploring autonomous vehicles for business-to-business moves, digital twins of distribution centers, new routing software, and drones for inventory checks. The key is to define what the future of work looks like and then bridge the gap for our employees.
I agree with Skip's point about distinguishing between digital and physical automation. They involve different workforces and have different implications. Digital automation typically involves a more sophisticated workforce, while physical automation affects hourly DC workers. It's important to be specific about what type of automation you're talking about and understand the implications for your workforce.
I see these technologies as augmentations rather than replacements. The challenge is getting our employees to accept these new "coworkers," whether they're large language models or delivery robots. It's about removing fear and helping employees see these technologies as benefits, not threats. This requires a significant amount of
change management.
We're focusing on technologies that improve product delivery and communication with customers. Over the past 18 months, we've noticed a shift in how customers want to interact with companies, likely due to the pandemic. We're also looking at technologies that can assist with administrative tasks, which can often be overlooked in the supply chain world.
We implemented CLM and Sourcing technologies in the last 3 years to standardise process execution, develop audit resilience and enhance knowledge management. Ensuring procurement outcomes align to Business strategy is a core principle throughout.
Our next focus is development of a digital procurement strategy given the recent (last 2-5 yrs) explosion of AI related capabilities in the market. Gartners recent Hype Cycle for Digital Procurent tells its own story of a very young and fragmented product base.
As part of strategy development, we are using Gartners toolkit but consciously referring back to the People Process and Technology paradigm. A balance across these themes is essential in our opinion to ensure a pragmatic ROI, understanding of change implications and most importantly, adoption by those skilled professionals involved in execution.
Doing so requires significant involvement from many members of our procurement community which we believe will support an informed approach to digitalisation but also increase our future adoption levels.