Generative AI Currently one of the most buzzed- about technologies, generative AI refers to machine learning systems capable of generating text, images, code, or other content, often in response to a user’s prompt. A primary benefit is efficiency, as generative AI can automate many tasks; Accenture research shows that generative AI could automate or augment up to 58% of supply chain processes. This enhanced efficiency can lead to greater resilience. For example, an AI-powered interface could help supply chain employees efficiently query and receive recommendations for demand and capacity planning insights in everyday language. With this information, they can quickly prepare for or respond to volatility. One example of a generative AI supply chain tool is TrusTrace, which offers a traceability and compliance data platform. It uses optical character
FourKites, which offers a supply chain visibility platform. Shipments can get lost due to disjointed communications and confusion. “When disruptions occur, every minute matters,” Fredrickson says. End-to-end supply chain visibility can lead to better decisions and lower costs. Case in point: Pasta brand Barilla, which operates 30 production sites across multiple countries, uses FourKites’ Dynamic Ocean solution to increase visibility and shipment information for its ocean freight. By leveraging dependable data and predictive estimated arrival times, among other information, cross-functional teams have access to critical global supply chain data when they need it. “Before we started using the FourKites platform, we could only react to an issue when it was too late,” explains Davide Busato, Logistic Competence Center Innovation project manager with Barilla. “Now, we react before an issue escalates into a major problem.”
recognition (OCR) to convert into a standard format the many varied documents that make up supply chains, such as purchases orders and emails. It uses AI to train the OCR software. With artificial intelligence, the OCR solution can attain 80% accuracy on new documents after just a few days of training—a process that previously would take a few weeks, explains Shameek Ghosh, CEO and co-founder of TrusTrace. AI-enabled supply chain traceability, an element that has often been a concern for companies working to improve their environmental impact, also can increase resilience by helping companies quickly pivot when needed, Ghosh adds. Visibility Solutions Often, transshipment and final destination ports can be “a black hole for data,” says Seth Fredrickson, vice president of product management at
SMALL COMPANIES GO BIG ON RESILIENCE
Supply chain resilience isn’t the sole realm of corporate behemoths. Small and mid-size businesses also need to boost resilience to deal with uncertainty. Here are some tools and processes that can help SMBs firms drive resilience. 1. Low-code development. This method of software development requires minimal coding and offers drag-and-drop functionality through an easily navigable graphical user interface (GUI). How does this relate to supply chains? “Platforms for low code have made the process of developing new applications very easy for less-technical people,” says KPMG’s Mary Rollman. One area that has seen a lot of low-code solutions development is supply chain planning. Because these solutions can be personalized, they often enjoy strong adoption, unlike software that requires users to change their processes. 2. Artificial intelligence. Even small companies are getting into AI, says Tim Payne of Gartner. They can start small, focusing on even one specific area that’s causing the most pain, such as transaction history.
3. Software as a Service. SaaS solutions are an affordable option for many companies. With SaaS, companies typically avoid initial hardware costs and benefit from flexible payment options, like pay-as- you-go arrangements. 4. Processes. Organizations of any size can take steps to empower decision-makers so they can make informed choices that contribute to more agile and adaptive supply chains, says Elizabeth McGuire of Clarkston Consulting. These choices include: • Identifying the business’s most impactful vulnerabilities, such as technology, suppliers, or location. • Developing a supply base that leverages alternative suppliers or an inventory strategy to support single or sole suppliers. • Using technology to ensure operations can grow and/or are stable. • Placing inventory so it’s aligned with product distribution and meets customer service levels, while also reducing the risk of excess and obsolescence.
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