Dive Brief:
- Eight technologies are transforming and driving "always-on" supply chains, making them smarter, more connected, nimble and scalable, according to the 2016 MHI Annual Industry Report.
- Driving technologies are: predictive analytics, robotics and automation, sensors and automatic ID, wearable and mobile tech, driverless vehicles and drones, inventory and network optimization tools, cloud computing and storage, and 3D printing.
- Most of nearly 900 industry-insider survey respondends believe at least one of these will disrupt or give competititve advantage in supply chains in next decade.
Dive Insight:
The always-on supply chain is comprised of integrated networks "characterized by a continuous, high-velocity flow of information and analytics, cerating predictive, actionable decisions," according to the report. Examples of this technology include foodservice data provider that helps companies predict what products to produce based on data from menus, or retailers' online ordering system that communicates with the companies' inventory data.
Two technology areas—robotics and automation, and driverless vehicles and drones—are already affecting supply chains more than previously predicted. Collaborative robotics, such as visually-guided vehicles, allow robots to work alongside humans and are shifting employees' skillsets to technology operators rather than manual laborers.
However, executives looking to implement these technologies report facing a shortage of "talent" in the workforce and a significant cultural risk aversion as they struggle to justify the investment. In these cases, the report suggests executives start small by choosing a pilot innovation program, ensuring it has a large impact potential, and then to move quickly to adopt or abandon the program.
