Monitoring digital transformation trends
The benefits and risks of AI merit ongoing attention
The past year has seen a boom in digital technologies and especially AI. You’ll find four of the top five most impactful trends and three of the top five most timely trends in this section on digital transformation – highlighting the essential role of digital technologies in future-ready supply chains.
AI saw four times more search interest in late 2023 compared to the previous year. This boom led us to focus on these topics in this edition of the trend monitor. In particular, generative AI, the use of AI for real-time data enrichment and cyber risks merited careful consideration in our assessment. Businesses should pay attention to these dynamic trends as they continue to unfold.
Connectivity – in focus
Affected industries:
Especially industries that rely on just-in-time (JIT) like automotive
Affected supply chain segments:
Freight transportation (ETA prediction, track & trace) and warehousing (robotic fleet coordination)
Increasing value through interconnectedness
Connectivity comprises of using digital means to reduce the cost of communication and make information available. Cloud services make information and functionality available from everywhere, while also facilitating management and scalability of IT infrastructure. Third-party APIs can be utilized to receive essential information in a standardized format and to enable standardized data exchange in fleets of autonomous vehicles.
Related developments
Facets of this trend
- APIs: leveraging expertise with third-party software and data integration
- Cloud and software-as-a-service (SaaS)
- Internet of things and Internet of everything
Getting ahead of the trend
Recent disruptions highlighted the value of reliable information regarding shipment statuses and product availability. Evaluate which APIs can support you in acquiring the information you need.
On the other hand, developments in AI have made data sovereignty questions more complex – investigate to which degree data can safely be provided to cloud services.
Supply chain automation – in focus
Affected industries:
Manufacturing and industries with hazardous environments
Affected supply chain segments:
Especially warehousing and terminal operations
Reduced human effort through technological advancement
Supply chain operations consist of many repetitive tasks with high potential for automation. Advancements in AI enable new forms of automation. Labor-intensive warehouse operations can be automated by autonomous robots for storage and picking that are orchestrated via a central platform. Unmanned vehicles and drones are being tested for tasks like last-mile delivery.
Related developments
Facets of this trend
- Drones and autonomous vehicles
- Labor task automation and bionics
- Intralogistics integrated with production logistics
Getting ahead of the trend
Developments in AI make it possible to reach new levels of productivity with robotic systems and automation.
Especially with regards to the labor shortage, businesses should re-evaluate the degree of automation of their logistics tasks.
See the 4flow study about warehouse automation below for additional insights.
Authors
Holger Clasing
Vice President and Head of Strategy Practice
4flow consulting
Wendelin Gross
Head of
4flow research
Gero Holzheid
Supply Chain Scientist
4flow research
