Automation and Digitization: Building a Smarter Supply Chain
As we continue to explore supply chain mega-trends, automation and digitization demand our attention. When agentic artificial intelligence (AI) and robotics work together, manufacturing and logistics are streamlined, and supply chain orchestration flourishes.
Operators and managers can then shift their attention to proactive problem-solving and value-added opportunities that require their expertise. While they maintain the human element of doing business, technology automates the rest. Let’s take a closer look at how all this comes together.
Agentic AI: What is it, and How Does It Work?
Agentic AI uses “agents” (software that performs tasks autonomously or semi‑autonomously) to address common supply chain issues and deliver solutions quickly. Companies using agentic AI see improvement in a range of supply chain processes, including:
Customer Service
Document Compliance
Scheduling
Track and Trace
24/7 troubleshooting and oversight are possible with limited human intervention. Agents respond fast to customer and vendor queries. Communication between agents means immediate updates and pivots, avoiding most disruptions and delays. The technology can be somewhat complex to start, but its quick adoption and rapid evolution into the mainstream is already having a positive impact. Agentic AI platforms are a one-stop shop to improve and streamline supply chain processes.
Supply Chain Robotics: Innovative and Precise
Robotics is an ever-expanding field of innovation across industries. I’m most interested in two ways robotics currently drives supply chain success:
Digital Twins as Enablers: A supply chain digital twin is a detailed model/simulation of an existing supply chain. Running various scenarios, it uses data and snapshots to forecast supply chain dynamics. Supply chain analysts use digital twins to understand supply chain operations/behavior, predict problems, and develop proactive action plans to address them (Source: Any Logistix).
Supply chain professionals use digital twins to model robot design, complete their virtual testing/simulation, perform their predictive maintenance, etc. This parallel “lab environment” allows supply chain robots to perform intuitively and efficiently from the start.
Autonomous Materials Handling Systems (MHS): Autonomous MHS allows for minimal errors and higher productivity in supply chain manufacturing and warehousing.
Robotic arms and automated conveyors work together to eliminate waste. They reduce defects and idle time while minimizing transit and movements. Tightly integrated with Warehouse Management and Enterprise Resource Planning systems (WMS/ERP), these machines increase throughput and better utilize space. They reduce labor costs and injury risk, enabling flexible, on-demand workflows for just-in-time production and rapid order fulfillment.
Benefits of Automation and Digitization
Whether or not companies opt for a fully-automated supply chain, robotics and agentic AI offer many benefits. Errors are reduced, output is steady and consistent, and results are predictable. The most effective tools and platforms adapt quickly to change and fluctuation, especially when they’re seamlessly integrated.
There are challenges with full automation and digitization. Operators and analysts may prefer a graduated, collaborative approach: people remain on hand to monitor supply chain technology, aiding expedited problem solving and minimizing service disruptions. Nonetheless, a clear glide path to zero intervention should be in place to avoid the double-dip trap. Don’t invest in technology without reaping labor-cost-reduction dividends.
Creating Opportunities? Let’s Work Together
One of the most appealing parts of investing in supply chain technology is entrepreneurs’ continuing ingenuity and creativity. If you’re working to create AI agents or robotics systems that simplify and streamline supply chains, I’d love to see your unique approach. If you’re looking to bring the versatility of the supply chain into your investment portfolio, I’ve got recommendations to align with your goals. Let’s connect to discuss opportunities.
