As we navigate further into the fourth industrial revolution, supply chains are evolving at a pace. Industry 4.0, characterised in part by the combination of digital and physical technologies, is reshaping how goods are produced, managed, and delivered. Central to this rather fascinating revolution are AI, machine learning, and blockchain, which are not just improving efficiency but redefining roles within supply chains.
Traditionally, supply chains have been structured around clear-cut roles: procurement focused on sourcing, logistics handled transportation, and inventory management ensured stock levels met demand. However, the landscape is shifting. Industry 4.0 is integrating these functions, fostering a more interconnected and dynamic ecosystem. Leigh Anderson, managing director of Bis Henderson Recruitment explores how these technologies are changing the industry.
The impact of AI on supply chain management
AI-driven predictive analytics are changing the game when it comes to demand forecasting and inventory management. By analysing historical data and market trends, AI can, with remarkable accuracy, anticipate spikes and downturns in demand. This predictive capability allows companies to optimise inventory levels, reducing both excess stock and stockouts.
AI is also automating routine tasks, freeing up workers for strategic decision-making roles. For instance, automated order processing and invoice matching streamline administrative tasks, while AI-powered robotics handle warehouse operations. This shift from manual to automated processes is creating new roles focused on overseeing and optimising AI systems.
Machine learning and supply chain optimisation
Machine learning (ML) is improving decision-making by analysing huge amounts of data to identify patterns and form insights. This data-driven approach helps companies optimise everything from production schedules to delivery routes, ensuring resources are used as efficiently as possible.
In logistics, ML algorithms enable dynamic routing, adjusting delivery paths in real time based on traffic, weather, and other variables. This flexibility improves delivery times and reduces transportation costs, leading to more responsive and resilient supply chains.
Amazon has been one of the pioneers in the use of this technology. Its logistics network leverages ML to optimise delivery routes and warehouse operations while also predicting future demand for millions of products globally. By continually analysing data, Amazon ensures timely deliveries, efficient resource allocation and improved customer experience. This broad and varied use of ML algorithms has been instrumental in maintaining Amazon’s competitive edge in e-commerce.
Blockchain’s role in improving supply chain transparency
Blockchain technology provides decentralised, immutable data at each level in a supply chain, enabling both businesses and consumers to accurately track products. A great example of this is John West’s “Trace Your Plate” initiative, where codes were added to tuna cans so consumers could trace the fish back to the water and fisherman it came from.
The transparency provided by having an immutable ledger for tracking goods from origin to destination offers an impressive capacity for verifying the authenticity of products and ensuring compliance with regulatory standards. This traceability can also improve food safety and reduce the time needed to trace sources of contamination.
That’s not where blockchain’s role ends, either. Self-executing smart contracts automate transactions, triggering payments and updates when predefined conditions are met. This element of blockchain technology reduces administrative overhead and minimises the risk of errors, creating more efficient and reliable supply chains.
Redefining roles and responsibilities
The integration of AI, ML, and blockchain technologies into supply chain operations is fundamentally redefining roles and responsibilities in the industry. As these technologies gain traction, traditional functions are shifting, and a new era of supply chain management is emerging.
One of the most significant changes is the requirement for new skill sets among supply chain professionals. The emergence of AI and ML has created a demand for expertise in data analysis, algorithm development, and machine learning models. Professionals must be adept at interpreting complex data and leveraging AI to drive decision-making. Cybersecurity also necessitates skills in safeguarding digital assets and ensuring data integrity across the supply chain.
Simultaneously, blockchain technology introduces a need for proficiency in distributed ledger systems and smart contract management. Certain supply chain professionals must understand how to implement and manage blockchain solutions to enhance transparency and traceability. This shift calls for continuous upskilling and reskilling to remain competitive in a rapidly evolving landscape.
Excitingly, new roles are emerging that blend traditional supply chain knowledge with technological expertise. Data scientists and analysts are becoming crucial for interpreting vast amounts of data generated by AI and ML systems. AI specialists and ML engineers can develop and refine algorithms that optimise supply chain processes, while blockchain analysts ensure the integrity and functionality of decentralised ledgers, creating a seamless and transparent supply chain.
The future of supply chain roles in industry 4.0
The long-term impact of AI, ML, and blockchain on supply chain roles will be profound. Traditional functions will evolve, requiring a continuous focus on innovation and adaptation. Supply chains will become more agile, transparent, and efficient. All of these will necessitate a commitment to stay ahead of technological advancements.
Continuous innovation and adaptation will be needed to maintain a competitive edge in this already dynamic environment, which will only become more so. Companies will need to continually monitor technological developments and be ready to adapt to new challenges and opportunities.
Supply chain professionals must embrace these changes, continuously upskill, and lead the transformation in order to stay relevant and attractive to employers. By proactively engaging with these technologies, they can drive innovation and maintain a competitive edge in the era of Industry 4.0.
Author bio
Leigh Anderson is the managing director of Bis Henderson Recruitment, a recruitment specialist that partners with businesses to find and hire top talent in the supply chain, logistics and procurement fields. Leigh has been recruiting for over 30 years and has delivered over 800 successful assignments in the UK, Europe, and Asia.
