Technology! Some use it extensively, others fear it. There's no denying it, we can't live without it. The emergence of the latest version of chatGPT brought up the question "Will artificial intelligence take our jobs?" The fact is that the replacement of humans by machines to perform tasks has been going on for centuries, and humans are always reinventing their way of performing activities and obtaining resources. This is how it should be Supply Chain Management (SCM), needs to reinvent itself, even if it is fearful, whether in terms of activities, chains, products, processes, integration and other aspects.
During the Covid-19 pandemic, supply chains were significantly impacted, and companies faced new challenges. In this scenario, digitalization was welcomed, and Industry 4.0 came into play, demonstrating that technology plays a fundamental role in the chain's evolution. With this in mind, I'd like to list some uses of technology in SCM.
Artificial Intelligence (AI)
Currently, the subject chatGPT is on the rise, its latest version is surprising. Developed by OpenAI with Natural Language Processing (NLP, Natural Language Processing) and Deep Learning, in addition to cutting-edge computing equipment, the chatGPT shows great promise as an assistant for various interactions with humans. In SCM It can be used for customer support by simply integrating it into your company's platform, website, or WhatsApp. The customer will appreciate it! Who hasn't been frustrated by some companies' archaic chats?
Models of Machine Learning are developed to extract value from the data captured by the company. When well-structured, these models are a powerful tool for data analysis, bringing improvements in demand forecasting, supply chain optimization, inventory management, preventive maintenance, and a myriad of other solutions. They are highly relevant for decision-making. The data can be stored on a private company server or in a cloud, space and tools provided by companies such as Amazon, Microsoft and Google.
Computer vision uses devices such as cameras and Machine Learning to assist in warehouse inventory control, quality inspection to identify product defects, product classification based on characteristics, access control through facial recognition, and shipment tracking from the factory to delivery to the customer.
Internet of Things (IoT)
Equipment in homes, offices, factories, and other environments can be connected to a control center. This connection occurs through IoT, which consists of plugging sensors into a device, a refrigerator for example, and capturing information that will be sent to a central unit, so that a function will be executed. In SCM, IoT It's present in traceability, condition monitoring, data capture and updating, and much more. This way, it's possible to have a macro view of the entire supply chain.
Robotization
A robot is a system involving mechanics, electrical systems, and computing that performs manual and repetitive tasks in place of humans. This machinery is expensive, from initial development to operation and maintenance. Therefore, many companies still employ humans for activities that could be performed by robots.
In SCM, robots can be used for warehouse automation, packaging products, transporting materials in a factory.
When considering scalability, companies should consider robotization. In the long term, it brings several benefits, including financial ones. Meanwhile, people are assigned to tasks that a robot wouldn't be able to perform.
Industry 4.0 brings a world of possibilities and implements scalability in companies. This is beneficial not only for the company but also for the consumer, who enjoys a better experience. Focusing solely on the initial cost sabotages the long-term vision. Technological transformation may initially require financial resources, only to later deliver the expected results. This also means staying ahead of the curve and ensuring a competitive advantage. A company doesn't live on technology alone; its culture and mindset will also shape the disruptions to come, but that's a topic for another post.
Link Strategy collaborates with your company in implementing digital transformation in Supply Chain Management.
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