Supply chains must constantly adapt and evolve to meet the demands of a fast changing global landscape.
With a steep rise in demand, higher customer expectations and ongoing disruption, there is an increased pressure to ensure better productivity than ever before. To meet these higher customer expectations though, the next generation’s supply chain needs a productivity boost.
In the last few years, overall productivity in this area has seen limited progress. Although leaders in their respective industries have tried to make operations more efficient and adaptable to today’s demands, for example, Adidas using strategic sourcing demand forecasting and product customisation, there is still work to be done and the uphill battle remains. A recent Gartner report backs this up, finding there has only been a slight increase in supply chain productivity from 40% in 2019 to 41-44% today — evidencing there has not been a big enough push in productivity to overcome demands and disruptions.
This stagnation is worrying for the future, potentially leading to inefficiency, frequent disruption and customer disappointment. Going forward, global supply chains must react quickly to unforeseen circumstances and improve their resiliency.
Boosting workforce motivation
Employees are the cornerstone of driving productivity in any business but investing in the workforce means more than just retaining staff – its enhanced employee engagement and motivation to help boost their output.
Making sure employees have time for innovation and upskilling is crucial to productivity. It enables them to develop new skills, adapt to changing technologies and contribute fresh ideas to streamline processes and improve overall efficiency. This investment in employee growth not only enhances individual performance, but also drives collective advancements in supply chain operations, leading to a more agile and resilient system.
One way to ensure employees have the time to focus on this growth and development is by investing in the right technologies to free up their time. Recent statistics highlight that nearly three-quarters of warehouse staff are more likely to accept a lower paying job at a company offering advanced technology to make their jobs easier and allowing them to advance other skills. These statistics highlight a shift in employee priorities, reflecting a trend towards valuing technological support, career advancement and improved working conditions. It emphasises just how important it is to invest in employees if you want to create a more dynamic, skilled, and motivated supply chain team.
Ensuring equilibrium between tech and governance
Whilst companies need to ensure they’re leveraging the benefits of advanced technology to improve supply chain productivity, they also need to maintain an effective oversight and risk management of the technology being implemented. In other words, supply chains need to strike a sense of balance between technology and governance.
For example, though AI and robotics promises significant productivity gains, it also introduces new challenges around data integrity, security, and ethical use. A recent forecast indicates that 30% of generative AI projects might be abandoned in 2024 due to issues with balancing innovation and governance. As such, it’s crucial for companies to develop robust governance frameworks which evolve alongside technological advancements to ensure data is protected, ethical standards are upheld, and productivity gains are sustained.
By establishing clear guidelines and monitoring mechanisms, businesses can fully harness the power of technologies.
Change for the better
Re-inventing supply chains to become more productive for the next generation may offer plenty of opportunities, however it doesn’t come without its challenges. Obstacles such as market volatility, geopolitical disturbances and fluctuating demands, will make it even more vital the future offers adaptability and agility.
To get here, the key is preparation. Whether this involves implementing advanced technology, creating more visibility with real-time data, or boosting employee engagement, a future-ready supply chain is one which has been created in advance with innovative technology at its core. Implementing next generation productivity strategies to adapt to the rapidly evolving landscape will also help to create a robust landscape for the coming years.
About the Author
Andrei Danescu is CEO and co-founder of Dexory. Dexory develops robotics and AI logistics solutions to drive better business decisions. Through our DexoryView platform we automate data collection and build real time fed digital twin technology that unlocks insights across all levels of warehouse operations.
