Bridging the Gap: Managing Supply Chain Risk and Resilience in a Rapidly Changing Business Environment

Today’s supply chains face a multitude of challenges, including a shortage of labor and rising labor costs. Additionally, customers expect warehouses to be closer to them due to the “Amazon effect,” leading to an increase in the number of smaller warehouses.

One significant challenge that supply chain managers face is managing risk and resiliency, especially in the face of unpredictable events like COVID-19. To adapt to such events, building a more agile supply chain is crucial in today’s rapidly changing business environment.

Emerging technologies like AI and automation offer potential solutions to these challenges, but it is essential to evaluate specific business challenges and expected ROI before implementing them. Many supply chain managers are experimenting with AI without a clear understanding of what works best for their business.

To separate AI hype from reality, it is vital to focus on applied AI rather than generative AI, which uses a large language model. Data security and validity are also crucial considerations when using AI solutions to ensure that data remains secure and accurate.

To address these challenges effectively, organizations must adopt a strategic approach that utilizes technology and manages risks efficiently in supply chain operations. By understanding the potential of emerging technologies while considering the unique needs of their business, organizations can navigate the complexities of today’s supply chains more effectively.