Next-Gen Tech for Resilient Supply Chain

In the last 4 years, the rules of the game within global logistics and supply chains have witnessed the most significant disruption since the advent of containerization in the 1960s and 1970s. This shift prioritized efficiency, leading to the widespread adoption of just-in-time (JIT) models, an inventory management method in which goods are received from suppliers only as they are needed. While these models excelled in efficiency, they are still susceptible to external disruptions. In the current unpredictable business environment, the traditional JIT approach has become uncertain and less effective for ensuring supply chain resilience.

The COVID-19 pandemic served as a stark reminder of this vulnerability, exposing the limitations of traditional, rigid supply chain models. The crisis highlighted how disruptions to suppliers, production, and distribution could severely impact operations, leading to stockouts, production delays, and ultimately, lost revenue. The widespread inadequacy of digital technologies within supply chains became a major stumbling block, with many companies struggling to adapt and maintain efficiency during the unprecedented disruptions caused by the pandemic.

The field of supply chain management is transforming at an exponential rate, with new developments in big data, cloud computing, and algorithmic development emerging daily. These advancements, particularly in AI and ML, have become more efficient, available, and affordable than ever before, holding the potential to revolutionize information management within global supply chains. While many of these technologies are underutilized, their adoption is expected to rise significantly. According to a recent survey by Gartner, top-performing supply chain organizations are investing in artificial intelligence and machine learning (AI/ML) to optimize their processes at more than twice the rate of low-performing peers.
 
To create a resilient operation, businesses today need to implement advanced technologies in the supply chain by integrating some of the cutting-edge technologies into their business offering: 

1. Unified Supply Chain: The unification of warehouse and transportation management systems is no longer an option but a business imperative. By unifying the supply chain, businesses can achieve greater efficiency, better visibility, cost savings, improved customer service, enhanced scalability, streamlined inventory management, and more informed decision-making, all contributing to superior supply chain performance. This unified approach ensures that all elements are synchronized and harmonized in real time. The platform's open architecture and API-first design enable seamless integration with existing systems, allowing companies to personalize and extend the functionality to meet their unique needs.

2. Cloud-Native Solutions: Unlike traditional cloud-based solutions that focus merely on the availability and delivery of IT resources, cloud-native applications leverage a microservices architecture and APIs to streamline operations, boost efficiency, and enhance resilience. These applications are easily customizable, integrate seamlessly with legacy infrastructure, and support plug-and-play opportunities with third-party services. By eliminating the need for major upgrades, cloud-native solutions provide a scalable foundation that allows businesses to quickly adapt to market changes and maintain agility in meeting customer demands, ensuring continuous innovation and a competitive edge.

3. Generative AI: Generative AI (GenAI) empowers businesses to proactively manage disruptions and optimise their supply chains. One of the key strengths of GenAI in supply chain management is its ability to enhance the customer experience. Unlike traditional chatbots with scripted responses, GenAI-powered solutions can analyze customer inquiries and respond with human-like support, creating a more engaging experience that meets customers' expectations. Imagine a customer service representative equipped with a GenAI-powered assistant, capable of suggesting alternative products during stockouts or anticipating customer needs. Gen AI’s power is to redefine the efficiency and service standards of customer service.

And, this enhanced customer experience is just the tip of the iceberg. By analyzing vast datasets and identifying patterns, GenAI unlocks deeper supply chain intelligence. Businesses gain a sharper understanding of their operations, enabling data-driven decisions and continuous improvement. GenAI's ability to learn and adapt ensures supply chains remain resilient in the facdqe of ever-changing challenges.

Building a resilient supply chain is a continuous journey. By embracing these technologies and fostering a culture of innovation, businesses can take proactive steps towards building adaptable supply chains that are not only capable of weathering disruptions but also position them for future success. With these next-gen technologies, businesses will have a solid foundation for navigating uncertainty and unlocking the full potential of a resilient supply chain in today's dynamic global marketplace.

By Ushasri Tirumala, Executive Vice President & General Manager, Manhattan Associates