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In the midst of disruption, reliable real-time information can increase the resilience of global supply chains
Supply chain leaders are looking for new strategies to deal with geopolitical uncertainty, labor challenges, inflation, climate change, supply challenges and cyber attacks. Industries such as manufacturing, semiconductors and automotive are at risk of any sign of recovery due to ongoing supply chain disruptions. With events affecting pricing and material supply, many are now bracing for a longer recovery in uncertain conditions.
New and complex problems require new approaches. If supply chain leaders once aspired to perfection, resilience and agility are now today’s mantras. Startups can’t afford to lose focus on digital acceleration. They must aggressively build operational models that are both predictive and proactive in order to anticipate and anticipate and prepare for both observed and unseen issues.
From planning and risk mitigation to value creation, cloud and AI are key to transformation.
Shipping giants like Maersk benefit from hosting business applications on the cloud, such as container tracking. For supply chain leaders, it’s no surprise that AI applications will be the biggest areas of investment in digital operations over the next three years, according to the IBM Business Value Institute.
Supply chain leaders know AI is key to their future, but according to a recent McKinsey study, three-quarters of their business operations are still based on spreadsheets, while only a quarter now use AI in some planning area. But the pressing issues of chaos and volatility are endless. And that means traditional planning applications are not enough.
Virtuosos are looking to implement full-scale digital transformation across all functions, even production scheduling and distribution, to manage demand volatility and supply constraints. With today’s AI tools, the allocation of human resources can be done more efficiently and effectively – combined with “cobots” to interpret information from high-risk areas to keep people safe on the job.
Trusted data for better risk and opportunity modeling
A recent IBV benchmarking study found that 71% of organizations share supply and demand data at a high level. In other words, as supply chains change, their need for reliable data to be used in machine learning models becomes more pressing. The integration of a trusted and secure data fabric that connects people, data processes and devices is the way forward for organizations to digitize their supply chain.
With more reliable data to build models, machine learning can draw powerful insights from operational data, weather and news updates to track and predict supply chain disruptions. They can recommend alternative measures that cut through the uncertainty, such as new shipping routes.
Visual and digital twins help operators manage performance by simulating extended supply chain models and clearly showing where bottlenecks and risks exist. Process mining can also gain efficiency and improve supply chain processes when integrated into multiple data models. With the cloud, organizations can extend those benefits to all supply chain partners, not just those within the organization.
Learn about five essential strategies for building a stronger supply chain, including digital transformation, improved sustainability and workforce evolution. Download “Creating Supply Chains of the Future: A Playbook of 5 Essential Strategies.”
Businesses everywhere have entered a new era of digital reinvention with hybrid cloud and artificial intelligence innovations. IBM is uniquely positioned to partner with our clients to deliver five digital advantages to help them succeed in this radically changed business landscape. Shape And predict Results based on dataS, Automation For productivity and efficiency balance, Reliable All touch points are always, Modernization infrastructure for direction and speed and turn into Through new business strategies, open technologies and co-innovation.