The analyst firm Gartner has identified eight top trends in supply chain technology that companies should key their eyes on. These trends are progressing quickly, with Gartner expecting most of them to achieve maturity in the next two to five years.
“If they are not on your radar, you are at risk of being behind,” warned Carly West, Senior Research Director in Logistics and Customer Fulfillment for Gartner, who presented the trends at the Gartner Supply Chain Symposium this week.
The top eight trends are:
- Machine customers: Gartner defines this technology as “nonhuman economic actors”—typically a machine, device, or equipment with internet of things (IoT) capabilities or an intelligent agent or algorithm—that buy goods and services. An example is a connected printer that orders its own ink when it detects that it is low.
- End-to-end sustainable supply chain solutions: Many supply chain solutions—such as transportation technology solutions, supply chain planning solutions, and procurement solutions—are increasingly building sustainability data into the decision-making process.
- Augmented connected workforce: These are typically wearable or mobile devices that help improve knowledge transfer and training to employees.
- Next-generation humanoid robots: Here, robots that look and move like humans are used to perform tasks such as order picking in a warehouse. The goal is for these robots to be flexible enough to perform one task in the morning and a different task in the afternoon without extra code having to be written.
- Artificial intelligence-enabled vision systems: This technology combines cameras, computer vision, and artificial intelligence (AI) pattern recognition to identify problems, safety issues, and deviations in real time. For example, the e-commerce fulfillment provider PFS Commerce, is currently using drones to perform inventory cycle counting in its distribution centers.
- Composite AI: Companies need to make sure that their AI strategy considers the human element of implementations. If they focus solely on implementing probabilistic deep learning or machine learning types of AI, where there’s limited transparency of what is driving the recommendations or decisions, it can create a lack of trust in the system. This lack of trust can slow down adoption.
- Supply chain data governance: As advanced analytics and AI become more prevalent, it becomes increasingly critical for supply chains to have in place strict policies and processes that maintain a high level of data quality.
- Cyber extortion: The impact of ransomware attacks can be crippling. Gartner’s research indicates that two-thirds of businesses worldwide have been affected by ransomware attacks, and 84% of those affected say they have suffered a significant revenue loss as a result. Companies should implement strong cyber risk management practices and protocols.
Underpinning all of these trends is a sense that now is the time to act when it comes to moving forward on these trends. West says there’s an unprecedentedly high level of agreement among senior business leaders on the strategic importance of implementing digital technologies. Gartner’s research shows that 78% of CEOs say they will increase investment in digital capabilities in 2024, and 82% of chief supply chain officers say they will increase supply chain technology investment in 2024–2025.
