SUPPLY CHAIN
UNLOCKING THE POWER OF SUPPLY CHAIN TECHNOLOGY
T
he impact of supply chain disruption across all industries has been evident over the past two
years, affecting both businesses and consumers. Empty shelves and price increases have been increasingly commonplace, and supply chain disruption is now contributing to inflation reaching a 30-year-high.
Blue Yonder’s latest research revealed that almost all businesses (97%) have faced disruption to their supply chains in the last 12 months. From customer delays to stalled production and shortages, nearly two-thirds of businesses are now prioritising their supply chain – and rightly so.
As organisations look to the future, our research also highlights that the biggest concerns are the COVID-19 pandemic, Brexit, and a pressure to be more sustainable. But how can businesses mitigate risks and take back control of their supply chains? Better planning is key. In today’s climate, this requires visibility, responsiveness and embracing new technologies like artificial intelligence (AI) to improve operational efficiency and streamline operations. Utilising technology gives organisations the ability to enhance the omnichannel experience, improve workforce management and support sustainable operations. Ultimately, this will help organisations to reap economic benefits, maintain business continuity and future-proof operations in the face of disruption
Enhancing the omnichannel experience The importance of having an effective omnichannel experience to navigate disruption must not be understated. Those organisations who were able to scale their online business thrived amid the COVID-19 pandemic. It was vital for retailers to meet customer demand, regardless of the channel, to maintain business continuity when supply lines were affected. Now, with consumers’ shopping habits changing,
businesses need to adapt quickly. The move to online, preference to shopping local, and uncertainties surrounding the high-street, while having to navigate Brexit red-tape, pandemic disruption and even delays caused by the weather, presents an increasingly difficult challenge. Managing this, while providing the right stock, in the right location, at the right time, has never been more important to remaining competitive. Companies must evaluate the right network, across a blend of large warehouses, smaller localised fulfilment centres and deliveries from stores. The need is for these to be interoperable with intelligent decision-making as to how best to move products from anywhere to anywhere. But this is where AI is coming to the fore. Our research showed that 53% of organisations believe advancements in AI technology will have the most significant impact in reducing disruption, second to end-to-end visibility (63%). While there is clear awareness around how AI can
18 MARCH 2022 | FACTORY&HANDLINGSOLUTIONS
help, more needs to be done to show the importance of AI to business operations.
Working together, AI-driven intelligent decision- making and end-to-end visibility will help deliver an effective omnichannel experience. For example, AI is driving better forecasting and order decisions to ensure that products are at the right place to allow shoppers to buy from wherever, whenever. Moreover, AI can help evaluate product needs, quickly identify new trends and ensure the range is optimised, and assess prime shelf placement when combined with new technologies. Customers want to understand real-time availability and delivery options as they shop with same-day delivery and pick-up options, requiring seamless supply chains, involving AI tools analysing millions of data points in real-time to optimise efficiency and decision-making. This is where retailers can unlock the power of AI and enhance their supply chains.
Transforming workforce management An effective workforce management solution is key to any supply chain operation. Labour shortages caused by Brexit, delays in recruitment caused by lockdowns and even the pandemic revealed just how critical the workforce is. More recently, the new COVID-19 variant Omicron sparked further concern for staff shortages. While we are moving out of the pandemic,
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