Enhancing Supply Chain Resilience through Advanced Automation Strategies
A study of the global supply chain automation market projected that it will grow at a compound annual growth rate (CAGR) of 12.6% from 2021 to 2028. This will bring the market to a value of $31 billion. The reason for this rate: automation is key to the future of supply chain resilience.
What is Supply Chain Resilience?
As Robotics Tomorrow explains, “Supply chain resilience refers to the ability of a supply chain to anticipate, prepare for, respond to, and recover from unexpected disruptions.” We know that with increased connectivity among the world’s supply chains, resilience is of the utmost importance. By enhancing resilience, supply chains are more likely to withstand cyberattacks, a significant concern, geopolitical issues, and more. And while there are other methods to shielding supply chains, the emergence of advancing automation technologies and tools is certainly a major boost.
Benefits of Automation for Supply Chains
The benefits of integrating automation into supply chain management are much like we see in manufacturing and other industrial settings. Automated systems can more quickly process large amounts of data and track risks that have the potential to create disruptions. In all, automation improves supply chain visibility, and just as importantly, mapping. “AI tools can compile and synthesize this raw data, enabling a firm to map out its different supply chain tiers,” Maxime C. Cohen and Christopher S. Tang wrote for the Georgetown Journal of International Affairs.
In turn, early adopters of AI in supply chain management have lowered logistics costs by 15%, according to Cohen’s and Tang’s article. Automation can lower carbon emissions produced by supply chains as well. A piece for the World Economic Forum points to Europe’s steel industry as an example of this, explaining that the combination of technological developments with supply chain changes is a part of the industry's strategy toward reaching its goal of reducing carbon emissions by 55% by 2030.
Education on Automation for Supply Chains
As we touched on in our previous industry brief, though, education is essential to the future of preparing teams to properly work with and evolve the use of automation. This is especially true as automation is and can change the nature of people’s jobs in the supply chain arena. The International Society of Automation (ISA) stressed in an earlier report that operators can more successfully and effectively utilize automation by supporting more degree programs, courses, and training opportunities for current and future industry professionals. This also includes an increase in upskilling and certification programs.
Sources:
● “The Role of Automation in Supply Chain Resilience” - Robotics Tomorrow
● “The Role of AI in Developing Resilient Supply Chains” - Maxime C. Cohen & Christopher S. Tang, Georgetown Journal of International Affairs
https://gjia.georgetown.edu/2024/02/05/the-role-of-ai-in-developing-resilient-supply-chains/
● “How technological advances are strengthening supply chains” - Asa Tamsons, World Economic Forum
● “Automation Critical to Supply Chain Resilience, Says ISA” - Supply Chain Brain