Can AI Replace Supply Chain Professionals?
The discussion about the transformation of the supply chain has, for some time now, been governed by technology.
Artificial intelligence. Automation. Predictive analytics. Digital twins. Blockchain. Cloud computing. Real-time visibility.
The business world is now investing heavily in these technologies under the impression that smart machines will automatically lead to a smarter supply chain.
Indeed, the use of technology in the supply chain has shifted the entire industry.
However, this technological shift has also revealed a key fact that many people have begun to realize.
Technology may churn data, but it cannot make wise decisions.
As we live in an era of uncertainty, the most important factor within supply chain management will not be the technology itself, but the people behind the machines.
Supply chains are being disrupted by innovations but do not depend exclusively on them.
The supply chains today are better connected than they have ever been. Technologies have changed the way we do things and introduced innovations in the supply chain. With advanced technology such as software, organizations can
achieve a within a short time and contact an organization. Moreover, machines can do those things that would normally take lots of hours to do. For instance, things that would have taken days can now take hours. Although
technological progress has resulted in improved efficiency, it is worth noting that technology cannot take in every aspect of decision-making. The decisions need to be made by the human professionals. It is because machines and
systems lack the ability to interpret what is going for instance in the world of globalization in relation to increasing geopolitics risks.
The Best Competitive Advantage Resides in Making Better Decisions
The contemporary supply chain management involves more than moving the materials from one place to another.
Trained professionals from supply chain management should always consider a wide range of issues in their company’s operations.
By offering reliable options to its clients, decisions made by professionals influence several other choices relating to the same project.
Thus, cutting down the inventory can reduce the costs for keeping it but it can also cause many other problems as it increases the inventory risks.
Changing suppliers can lead to more attractive pricing but, unfortunately, it may reduce the quality of products bought at market prices.
Sending the products faster might lead to bigger customers’ satisfaction and bring profit for any organizations.
Artificial Intelligence Predicts, while humans use Context.
The addition of AI in the realm of supply chain management has certainly revolutionized logistics by providing advantages to companies never like before.
Amongst other factors, the AI is capable of processing large volumes of information, recognizing the trend behind the demand for specific products, predicting sales performance, etc.
However, AI works on past data and models prepared in advance.
Markets don’t always operate in the same way.
Consumer behavior changes frequently.
Trade routes might also change for various reasons.
Even the weather can affect logistics.
A new trend can surprise companies and interfere with the demand during a single instant.
In these exercises, humans and their experience come to play a crucial role.
The Importance of Soft Skills
There is much talk about expertise in supply chain management and the nature of supply chain jobs.
But there is an increasing demand for people who are not just experts in their respective fields but also possess good people skills.
Today, soft skills such as critical thinking, communications, negotiation, leadership, teamwork, and problem solving are important.
The role of a purchasing manager is more than merely comparing quotes from suppliers.
They are involved in establishing long-term relationships with suppliers.
A warehouse manager goes beyond just monitoring what is coming in and out of the warehouse.
They also engage in coordinating different teams in the company.
They go the extra mile in improving how work processes in the company work in addition to addressing any disruptions that happen in the process of doing their work in logistics management.
The same applies to a logistics manager.
Being an effective logistician today means more than just shipping goods from one point to another.
When shipping goods one also has to consider the expectations of customers.
The Future of Supply Chain Management Is in Adaptive Professionals
Today’s supply chain environment can best be defined by uncertainty.
Recently, the world has shown that resilience is no longer an option.
Supply chain professionals must now be responsible for anticipating risks, reacting quickly to changes, and improving processes.
This calls for an attitude of continuous learning.
At a time of rapid technological change, it is crucial that supply chain professionals keep abreast of new technologies and developments.
Companies are looking for more than just employees who can operate software programs; they want people who can understand the implications of their decisions on the organization as a whole.
Creating Future Supply Chain Management Leaders
As supply chains become digitized at a faster pace, there is a more strategic requirement for supply chain executives.
There is a need for people who can integrate technology into business goals.
Knowing about procurement and logistics, inventory control, demand forecasting, supplier relationship managements as well as operational management is crucial in all the functions in an organization.
That is why the effort to learn has become essential for everyone involved.
Conclusion
The world of technology will keep evolving on supply chains.
Artificial intelligence will become smarter.
The automation will be even more widespread.
The access to the data will be more feasible.
But the companies that will succeed in such modern times will not necessarily be those with the best tools.
They will be the ones employing people who know how to analyze data, cooperate with others, tackle difficult problems, and make the right choices at the right moments.
Because every supply chain is not a perfect technology-enabled thing.
It is a success, accomplished by people with clever minds.
At Blue Ocean Corporation, we understand that preparing people for a career in the supply chain of the future involves much more than teaching them about the theories involved in supply chain management. Our approach includes equipping trainees with hands-on skills, strategic thinking, and expertise which will enable them to navigate today’s supply chain systems successfully. We are dedicated to preparing individuals through delivering world-class education and training programs that provide them with the skills they need in order to take part in today’s changing world.