Woman descending escalator with neon lights

How to spread intelligent automation and AI across your supply chain

Amid uncertainty and disruption, these technologies help companies meet rising consumer expectations while gaining agility and efficiency.


In brief

  • Supply chains run on data and integration, and intelligent automation is a powerful enabler for driving connectivity and resiliency.
  • Define your customer and business goals, then enable them by exploring use cases and leading practices that help you work backward to address gaps.

As they manage margin erosion, new growth and increasing consumer expectations, businesses want supply chains that balance agility, scale and cost control — which, in the wake of the global pandemic and continued economic turbulence, is a struggle even at the most sophisticated and well-respected companies. That balance can be better enabled through intelligent automation powered by AI, replacing complexity with efficiency in ways considered impossible as recently as a few years ago.

 

And the stakes are high as more consumers demand deliveries with speed and transparency. Supply chains traverse many varieties of infrastructure, operational and analytical platforms, and types of labor — entangled in a complex ecosystem of partners and environments, operating within many processes and regulations, and with disparate data sources that are siloed instead of integrated. Just within a typical large company, 175 apps are used on average, according to a well-known identity and access management company. That’s a significant source of complexity that jumps exponentially when that company tries to connect with suppliers hosting their own intricate ecosystems.

 

Operational complexity presents challenges

Graphics 1

In this environment, intelligent automation and AI are rapidly evolving and present opportunities to improve processes, systems, data and physical elements throughout supply chains — enabling enhanced customer experiences to drive revenue growth while also cutting costs. Here’s how.

1

Chapter 1

The art of the possible

Intelligent automation does critical aspects of processes, with steps computed at any time of the day.

What separates intelligent automation (IA) from typical automation is the sophistication of other enabling technologies — specifically AI — to deliver capabilities far beyond the rote.

A supply chain equipped with IA and AI throughout can drive significant benefits across all its key activities, delivering improved efficiency, greater operational collaboration and more effective communication with suppliers, fewer errors, and better data-driven insights that enable agility and responsiveness. By applying other elements of the IA suite — including process and task mining in which software loaded at the app, server or computer tracks a user’s every single click — you can analyze processes to find process inefficiencies along with automation opportunities.

Intelligent automation powered by AI

Graphics 2

Because of its inherent flexibility, intelligent automation and AI can be applied to supply and demand planning and orchestration, inventory and incoming material management, factory planning, order fulfillment, load and dock optimization, and many more areas. Instead of doing manual entry to fill in the gaps between disconnected systems, for example, your people are freed up to perform more value-added tasks.

Here are real-life examples of what’s possible — today — in certain hot spots along the value chain. But keep in mind that each link in the supply chain is tightly correlated to the others, so comprehensive transformation can deliver exponential benefits.

2

Chapter 2

How to begin now — thoughtfully

Getting started no longer requires as much time or effort as technologies have evolved.

As intelligent automation and AI have evolved to achieve more, the learning curve and time required to get started have also been shortened. However, companies should proactively debate how to shape their programs upfront. Here are some action items to begin the dialogue and then deliver on the possibilities.

1. Establish your “North Star”

What are you trying to achieve with your intelligent automation/AI program? What supply chain problems are you looking to solve, and how will you measure if you’ve been successful? Is your focus to cut costs and capture greater efficiencies or enable greater resiliency and agility? Or are your efforts centered more on fulfilling customer needs? Intelligent automation is a mechanism for doing all the above, but setting priorities up front will define the rest of your journey.

2. Take inventory and assess gaps across the value chain

By themselves, technologies don’t solve business problems — they enable strategies to solve those problems. Work back from your priorities to determine which foundational elements you lack; for example, is your data in a place to make your dream a reality? Or is it trapped in one system, in a format that makes it more difficult to leverage and integrate elsewhere? Most large companies rely on a complex web of systems and applications, as well as third parties with their own systems and applications. Intelligent automation and AI can fill these gaps, but defining problem areas and how to address them are foundational elements of your approach — including governance, responsibility assignment matrixes, playbooks, guiding ethical principles and more.

3. Find use cases to achieve your program goals

As noted, intelligent automation and AI are inherently flexible, with applications from one end of the supply chain to another. In recent years, we’ve seen a significant rise in technological capabilities that take the guesswork out of discovering and designing processes, such as through process or task mining. Rather than solely interviewing professionals about how they do their jobs, you or your advisors can use this software to create solutions that are more science than art, without guesswork and endless iterations, as well as accurately monitor how value is realized.

4. Build with best practices and reusability in mind

Setting up IA with AI requires a level of investment that is just a fraction of what’s needed for other technologies, and when you get the foundational pieces correct, you can leverage economies of scale for broader use cases across the supply chain. Developing your IA and AI playbooks and center of excellence, upskilling your people, and pinpointing the proper governance are all actions that are just as valid for planning as they are for manufacturing and delivering. Mapping and integrating systems with other platforms can leverage the same connectors internally (like for planning) as externally (with your suppliers in delivering). Data storage, cleansing and analytics fuel demand sensing and planning into inventory management and beyond. Storing and reusing libraries of components also serves as an accelerator for launching projects that immediately address tasks properly.

5. Leverage organizational change management and clear communications

Equipped with IA solutions, your employees can achieve so much more — but you need to communicate that narrative to effectively market the program and its objectives. This marketing plan and the necessary change management are crucial for turning plans into repeatable action. What is your supply chain automation story, and how are you communicating it to align stakeholders? You could have a landing page in your intranet, with videos, to show what you’re doing and how it’s connected to your strategy, priorities and ultimately your bottom line. This is an opportunity to maximize and showcase the benefits of the technology, and your company should cultivate relationships and ideas from within the supply chain and operations and across other business lines for greater success in future projects.

Summary 

Customers demand speed. Executives demand visibility. But too many supply chains can’t keep up because they run on disconnected systems, manual processes and unstructured data. Modern solutions leverage AI and intelligent automation to drive greater connectedness in your organization and with suppliers, adding productivity and resiliency without more complexity. In a complex world full of supply chain risks, you are at risk of falling behind without intelligent automation.

About this article