Navigating the Complexities of Modern Supply Chain Management: Balancing Technology, Risk and Customer Expectations

Supply chains are facing various challenges such as labor shortages and rising labor costs. Additionally, customers’ expectations have shifted due to the “Amazon effect,” requiring warehouses to be closer to customers, resulting in a proliferation of smaller warehouses.

Managing supply chain risk and resiliency is another significant challenge, especially in dealing with unpredictable events like COVID-19. Building a more agile supply chain is crucial in today’s rapidly changing business environment.

Emerging technologies like AI and automation offer solutions to these challenges, but it is essential to identify the specific business challenges and expected ROI before implementing them. Many supply chain managers are experimenting with AI without clarity on what works best for their business.

It is crucial to separate AI hype from reality, as not all AI solutions are suitable for every business. It is important to focus on applied AI rather than generative AI, which uses a large language model. Data security and validity are also important considerations when using AI solutions to ensure that the data remains secure and accurate.

Organizations need a strategic approach to utilizing technology and managing risks effectively in supply chain operations. By understanding the potential of AI and other emerging technologies while considering the unique needs of their business, they can navigate the complexities of today’s supply chains more effectively.