Reshaping Supply Chain Roles: The Impact of AI and Automation with Trace Consultants

August 31, 2024

Reshaping Roles in the Supply Chain: Embracing the Future of Human-Machine Collaboration

As the integration of AI and automation continues to revolutionise the supply chain, the roles of human workers are evolving to meet new challenges and opportunities. The coexistence of humans and machines in the supply chain of the future necessitates a reimagining of roles, where technology enhances human capabilities, allowing workers to focus on strategic, value-adding activities. This article explores how various roles within the supply chain—planning, manufacturing, logistics, last mile delivery, and warehousing—will be reshaped in the era of AI and automation.

Planning: Elevating Strategic Decision-Making

In the future, supply chain planners will increasingly rely on AI to predict disruptions and identify optimal responses. AI-driven insights will allow planners to focus on longer-term strategies and managing alerts, rather than getting bogged down in day-to-day operational issues.

  • AI-Driven Insights: AI will enable planners to not only predict potential disruptions but also suggest the best course of action, allowing for a more proactive approach to supply chain management.
  • Focus on Strategy: With AI handling routine decisions, planners can concentrate on developing strategies that enhance supply chain resilience and responsiveness. The role will shift from a focus on forecast accuracy to one that measures success by the commercial impact and benefits generated for the business.

Impact on the Workforce:Planners will need to develop advanced skills in data analytics to interpret AI-driven insights and apply them to business decisions. This shift will require ongoing reskilling and upskilling to ensure planners are equipped to leverage AI effectively.

Manufacturing: Optimising Operations with Automation

Factory managers of the future will likely oversee operations enhanced by advanced automation and AI-driven bots. These managers will utilise simulations in virtual environments to test and refine production processes before implementing them in the real world.

  • Automation in Action: Managers will increasingly rely on AI and robotics to optimise production lines, reducing waste and improving efficiency. The use of simulations will allow them to test different production scenarios and select the most effective strategies.
  • Global Collaboration: The ability to collaborate with skilled teams around the world through virtual factories or warehouses will become more common, enabling faster and more informed decision-making.

Impact on the Workforce:The role of the factory manager will become more focused on overseeing automated processes and collaborating across geographies. This will require a blend of technical expertise and leadership skills to manage both human workers and automated systems effectively.

Logistics and Last Mile: Transforming Through Digital Technologies

Logistics roles, particularly in the last mile, are set to be transformed by the adoption of digital ledger technologies (DLTs) such as blockchain. These technologies will automate many of the traditionally manual tasks associated with managing supply chains, from customs and trade compliance to last mile delivery.

  • Blockchain for Automation: The digitisation of logistics processes through blockchain will streamline operations, reducing the need for manual oversight and enhancing the accuracy and security of supply chain transactions.
  • Evolving Customer Roles: As logistics becomes more automated, roles may shift towards customer service leadership, with last mile leaders acting as customer concierges. These individuals will ensure that customers receive their orders promptly and handle any issues that arise, providing a personalised touch in an increasingly automated world.

Impact on the Workforce:Workers in logistics and last mile roles will need to adapt to new technologies, focusing on customer relations and managing AI-driven logistics systems. This shift will require training in both technology and customer service to effectively manage the evolving demands of the role.

Warehousing: Collaborating with Robotics

The warehousing workforce of the future will be digitally fluent and focused on overseeing automated operations. Staff will work side-by-side with robots, relying on automation to handle unsafe, dirty, and repetitive tasks, allowing them to focus on higher-value activities.

  • Automation in Warehousing: Robots will take on tasks such as picking, packing, and sorting, with human workers overseeing these activities and ensuring that processes run smoothly. Automation will also enhance safety, reducing the risk of injury for warehouse workers.
  • Data-Driven Decisions: Managers will use data collected from connected sensors, IoT devices, and wearable technologies to drive efficiencies, improve safety, and optimise operations. This data will feed into the control tower, providing a macro view of warehouse performance.

Impact on the Workforce:Warehouse workers will need to develop digital literacy skills to manage and interact with automated systems. The focus will shift from manual labour to monitoring and optimising robotic operations, requiring ongoing training and development.

The Future of Work in Supply Chain

As AI and automation reshape the supply chain, human roles will evolve to focus on strategic decision-making, collaboration, and customer service. The integration of advanced technologies will require a new set of skills and competencies, with an emphasis on data analytics, digital literacy, and leadership. Trace Consultants can help organisations navigate this transition by providing the expertise needed to reskill the workforce, optimise human-machine collaboration, and ensure that automation enhances, rather than replaces, human capabilities.

For more information on how Trace Consultants can assist your organisation in reshaping roles for the future of supply chain management, reach out to their team of experts today.

Contact us today, trace. your supply chain and procurement consulting partner.

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