Should ERP & Related Supply Chain Technologies Be a Priority?

ERP and related technologies should only be a priority if you want to grow and succeed for decades to come. By utilizing ERP and supply chain technologies, you’ll maximize your efficiency and drive customer satisfaction. If not, it will be the same as if you said you wanted to stick with the horse and buggy instead of leaping into a Ford.

To put this into perspective, according to Deloitte Insights (from 20220), manufacturers’ average IT budget as a percentage of revenue is 2.14%. Of course, it depends on whether you are small or large, but the ballpark remains valid. If focused on ERP (as a modern ERP system is vital to success), a rule of thumb is that you’ll spend 5-7% of revenue (for the full project price and implementation cost). How do these compare with your budgets?

Why Should ERP & Related Technologies be a Priority?

The future will be for those who are innovating and using technological advances. Manufacturers and distributors are navigating a mountain of geopolitical, natural resource and rare earth issues in addition to navigating interest rate impacts and a host of other economic challenges that create negative headwinds on preparing for profitable growth and contributing to key financial indicators. Instead of pushing a boulder uphill, it makes sense to look for new solutions and strategies to solve old issues. One of these strategies is to maximize the power of ERP and related technologies.

Will my ERP System Suffice?

Of course, the answer to whether you should upgrade your ERP system is that “it depends”. Upgrading your ERP system isn’t for the faint of heart. 80% fail to achieve the intended results. Yet having a modern ERP system that supports your needs is absolutely essential to support growth plans.

No matter your situation, you can start immediately by better leveraging your underutilized asset. In almost 20 years of consulting, I’ve yet to find a client that couldn’t better utilize their ERP system to attain bottom line business results. Read our comprehensive article to find out how – The MacGyver Approach: Leveraging Your Underutilized ERP Asset. For example, an aerospace manufacturing client was struggling to provide high service levels to their customers while dramatically reducing their inventory levels with a wide breadth of products to support their growth goals. In addition to process improvements and common goals, a key ingredient to success was leveraging additional ERP functionality to improve their production and inventory planning processes across their production facilities.

However, as customer expectations have increased, supply chains have become increasingly complex, and margins have been squeezed with rising costs, having a modern ERP system is the only viable path forward for sustainable success. How do you know if your ERP system will suffice and whether an upgrade should be a priority? Read our article on find out the answer. If you determine you should modernize your ERP system, check out our guide for selection and implementation success.

What Technologies are Required to Support Success?

Again, of course, the answer is “it depends”. With that said, the answer is NOT that you can afford to sit still. What is absolutely clear is that only manufacturers and distributors that pursue advanced technologies will thrive in today’s volatile and complex age.

There are countless technologies that might be appropriate. No client should pursue all of them. If everything is a priority, nothing is a priority. The key is to review your growth plans and assess your SIOP (Sales Inventory Operations Planning) process results to set your technology priorities. A few of these technologies that pop to mind include:

• Robotics: Almost every client is testing, trialing or using robots. There has been controversy over people vs robots in some circles although manufacturers are flipping that equation to people and robots. Read examples in our article, People vs Robots. It doesn’t make sense in every situation. In fact, one equipment manufacturing client chose not to pursue a specific robot because it didn’t provide a return on investment and slowed down the process after thorough testing. On the other hand, another client continues to add welding robots which automates repetitive tasks.
• Artificial intelligence: Demand planning, also known as sales forecasting, is important for every company, and artificial intelligence can always add value to the forecast yet is especially key for hard to predict patterns such as those in consumer products industries. AI is used in countless manufacturing and supply chain technologies. Check out our recent article on AI, titled “ChatGPT & AI: Good or Bad?“.
• Predictive analytics: Business intelligence, big data, and predictive analytics are proving essential. Every ERP system can provide you with an overwhelming amount of data. The issue is sifting through the data to get meaningful information for decision making. Read our article to get strategies to turn data into insights. Taking that a step further to using your data to predict the future can give you an advantage over your competition.
• E-commerce (B2B and B2C): Consumer expectations continue to increase. After all, who doesn’t expect immediate deliveries from Amazon? What goes on behind the scenes to make that happen isn’t a no brainer. Read our articles on manufacturing opportunities in e-commerce and B2B, B2C & Associated Technology.
• Digital twins: What could be better than simulating your factory, products, your supply chain etc.? Digital twins enable better designs, planning, and much more to contribute to customer success and EBITDA growth.
• Autonomous capabilities: These capabilities are used widely in manufacturing environments to supply or move materials and components; in logistics and distribution environments to move items and in transportation and goods movement to move products.
• And many, many more such as drones, blockchain, additive manufacturing, mixed reality/ metaverse, internet of things (IoT), 5G, etc.

The Bottom Line

Jump into the world of technology. Bring on experts and deep dive into those areas that will provide significant benefits to your business. Minimally, you should test and trial the use of advanced technologies. Perhaps you’ll even combine technologies in a new way or develop a new technology to support your profitable growth.

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Modernize Your ERP System: A Guide for Selection & Implementation Success

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What is All the Hoopla Over ChatGPT?

If you haven’t been living under a rock, you’ve heard about ChatGPT and other AI (artificial intelligence) competitors such as Google’s Bard and Elon Musk’s AI platform. Everyone has gotten into the conversation, from marketing professionals to tech experts to people like Elon Musk are talking about AI and how it will transform the world…..with a bit of caution throw in for good measure.

Artificial intelligence has been around for quite some time. Who doesn’t own an Alexa? Even my Mom thought Alexa was the best gift she ever received as it is an easy alarm, answers questions, tells her about the weather and much more. With that said, AI has expanded far beyond Alexa in recent years.

What are the Uses of AI in Manufacturing?

There are many uses of AI in manufacturing and supply chain. According to Markets and Markets, artificial intelligence in manufacturing market size is valued at $2.3 Billion in 2022 and anticipated to increase to $16.3 Billion by 2027. That is a MASSIVE increase. Obviously, there is vast potential, and so you better get on board, use common sense, and determine what makes sense to support your long-term objectives. Here are a few of the common uses:

• Predictive maintenance: AI is used to collect data from machines and predict which will break down and what maintenance should be performed to avoid breakdowns and maximize output.
• Demand forecasting: AI can be used to predict future trends instead of relying solely on historical patterns. After all, historical patterns are no longer sufficient.
• Generative design: In engineering intensive environments, AI can be utilized to mimic the design process to quickly produce hundreds of design options for a single product. We work with several clients that could use this base once it produces a solid base.
• Raw material pricing: Similar to demand forecasting, AI can be used to forecast commodity prices.
• Machine optimization: Edge analytics uses data sets gathered from machine sensors and can provide insights on how to maximize efficiencies and minimize waste.
• Quality controls: AI can also monitor quality and quickly identify defects so that quality can be built into the process instead of identified later.
• Robots: AI robots can help eliminate the monotonous operations, reduce errors and eliminate waste.
• Supply chain alerts: By monitoring your end-to-end supply chain with AI, you can be alerted to supplier failures, impacts predicted and options evaluated.
• Autonomous vehicles: AI can be utilized to automate the factory floor, optimize deliveries, and ensure the production line continues to run.
• And many more…..

AI Uses in Logistics

Similar to manufacturing, there are a mountain of uses in logistics including the following:

• Autonomous vehicles: Self-driving trucks are being tested and could greatly minimize the issues associated with the shortage of drivers.
• AI Warehouse Automation: AI can be used to track robots, inventory, identify errors, and monitor warehouse conditions.
• AI for visual inspection and damage detection: AI is being used commonly to quickly and accurately identify damaged goods on a conveyor belt before they ship to a customer.
• Predictive maintenance: Similar to manufacturing, predictive maintenance is an improvement over preventative maintenance.
• Delivery drones: AI can power delivery drones that can streamline and automate the shipping process.
• Route planning & optimization: Why calculate thousands of potential routes manually? Instead, use AI to run through thousands of route permeations and take into account other factors such as weather, traffic, and construction to optimize your freight.
• Data-Driven Analytics: Use AI to track and manage the flow of goods throughout the supply chain. Identify potential issues and mitigate them before they occur.
• And many more…..

Is AI Good or Bad?

Certainly, there are many valuable uses of AI in manufacturing and supply chain. If you want to thrive, you will need to embrace AI. Of course, you cannot blindly follow artificial intelligence. Use a bit of common sense, start with practical applications that will provide immediate value with strong paybacks, and expand where it makes sense. Do not jump in and let AI take over. Instead, think about what you’re doing, test the results, and expand.

There are many positive results from using AI. These include error-free processing, automation of repetitive tasks, 24/7 availability, faster decision-making, predictive capabilities etc.

On the other hand, there are drawbacks as well. One is that humans no longer have to think. That is a BIG concern if you don’t maintain this ability to monitor AI etc. Big unions such as the ports are worried about unemployment. However, there is a lack of talent in today’s marketplace, and it does not appear to be improving with the retirement of the baby boomer generation. In fact, more high-skilled roles will be needed with AI. On the other hand, if you aren’t interested in learning and prefer repetitive tasks, your job is likely to go away. The statistics prove this worry to be false. For example, UPS put automation and AI in place in a large distribution center, and their volume increased, propelling them to hire more people. This is a common story yet there remains a LOT of controversy. Unfortunately, making the U.S. more uncompetitive vs. China’s ports is not the solution as we already are manual vs. using technological advances, automation, and robotics.

Elon Musk and and a group of artificial intelligence experts want to pause the development of AI. They want to make sure the risks are mitigated and that the effects will be positive for advanced uses. For example, who wants their car to drive into a crash without the ability to stop it? This has created a lot of controversy as countries like China will not pause. It is creating quite the controversy. We need smart thinkers using common sense and collaborating to “win this technological war”.

Who certifies the certifiers?

On the other hand, using ChatGPT is largely non-risky – unless you take its conclusions as accurate without verification. It will lead you down the wrong path. There are countless examples of ChatGPT predicting what likely occurred but was not based in reality. The key question is, “Who certifies the certifiers?” as my consulting mentor Alan Weiss points out. The same holds true for AI. Who programs the ‘truth’ into ChatGPT and the like? In fact, ChatGPT is working with 2 year old data, and so as much as it can be valuable in creating a base, do NOT run with AI/ ChatGPT to the bank. Or, you will walk out like a Silicon Valley Bank investor.

Should Manufacturers and Distributors Pursue AI?

Only if you want to stay ahead of changing market conditions in an efficient, cost effective, error-free manner!

Bring on experts and consultants. Provide training and education for your teams. Learn about AI, its uses, how it could add value in your situation, and evaluate potential business partners/ software suppliers. Take the leap with a controlled pilot. And surpass your competition! Only the technologically advanced will thrive in the next decade.

How Does AI Relate to ERP?

Modern ERP and related systems (such as advanced planning and demand planning systems) are incorporating AI. It will no longer be sufficient to struggle with an outdated ERP system. If you do not have a modern ERP system, hire an ERP selection consultant to help you find the ‘right’ system for your critical requirements and take the plunge to upgrade your ERP system.

If you are interested in discussing how to incorporate AI and related technologies into your technology roadmap review our ERP and technology resources and/or contact us to discuss your situation.

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Modernize Your ERP System: A Guide for Selection & Implementation Success

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Manufacturers utilize less than 20% of the full functionality of their ERP systems. But the key question is, why does it matter? In today’s inflationary and supply chain disrupted business environment, manufacturers need to automate and digitize to ‘do more with less’ and thrive during these volatile times. One important way to achieve this goal is to further leverage your ERP system where it will make a difference.

No matter which ERP system you use or how archaic, there will be opportunities to use additional functionality. In 30 years of working with manufacturers, there hasn’t been one example of a client that couldn’t benefit by expanding the use of ERP. Beyond customer, profit, and cash flow benefits, ERP systems can help you automate the repetitive and mundane. The people benefit. Turning jobs from repetitive and injury-prone to exception-based with opportunities for learning and development can engage people’s interest. With the shortage of talent as the number one issue to top executives, it is worth investing in the expanded use of ERP.

Start by exploring and assessing which functionality would provide the most value to your organization. ERP systems support your order to delivery cycle, which is essential to successfully fulfilling your sales order demand, improving delivery performance, and reducing lead times. ERP functionality also supports the procure to pay cycle, which is key to purchasing the right materials to arrive at the right place at the right time to support manufacturing and most efficiently manage inventory levels. Almost every client can improve upon the plan to produce cycle, which can achieve three objectives simultaneously – improved customer service, increased efficiencies, and accelerated working capital.

Beyond base ERP, there are many technologies that support the customer such as customer relationship management (CRM), sales forecasting, and e-commerce. Additionally, there are software options to automate and digitize for increased efficiencies and improved quality standards such as the use of barcoding, RFID (radio frequency identification), robotics, autonomous vehicles, digital twins, and automated storage and retrieval systems. Critically important are software options to aid in analyzing and predicting data such as business intelligence (BI), artificial intelligence (AI), and predictive analytics.

As easy as it might be to get caught up in fads and trends, take a step back when assessing where to focus efforts. Understand your customer requirements and business requirements. Which functionality will provide the greatest benefit to your business? Which software functionality will best position you for growth?

For example, in a building products manufacturer, an assessment was completed of their use of their ERP system. Although they might benefit from advanced functionality such as available to promise (ATP) and advanced replenishment planning methods, they discovered they could benefit greatly by simply further leveraging their planning systems to increase OTIF (on-time-in-full) and add value to their service. By focusing on this simple objective, the sales team was able to grow the business during times of significant volatility and uncertainty.

As manufacturers focus on the expanded use of ERP and related technologies, they can create unique value for customers and in their supply chain. Taking it a step further, to thrive during these inflationary times, it is important to automate, digitize, reduce repetitive labor requirements, increase efficiencies, and standardize so that more can be achieved with less. Create value by better utilizing your already-existing ERP asset and engaging your people in solutions and progress.

As originally published in Brushware Magazine on September-October, 2022

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The technological transformation is occurring at an unprecedented pace. What was expected to happen by 2035 is in process now. Industry 4.0 has taken manufacturing and supply chain by storm. Executives are realizing that they must upgrade their technological infrastructure to thrive in 2021. Which technologies are gaining momentum in supply chain and logistics?

According to clients, colleagues and experts, here are a few of the top technologies to evaluate:

• Virtual Reality: Not only is virtual reality improving safety but it enables product and process design, data and process visualization and experience-based learning. In our recent interview with Paul Granillo, CEO of the IEEP, he mentioned that Loma Linda is training their nursing staff using VR.
• Robots & Cobots: Robots are taking over more and more repetitive tasks for manufacturers and distributors. It solves the COVID requirement to stand 6 feet away from a co-worker; however, this is simply a side benefit. One of our clients developed a robot that could run throughout the night on a critical process so that they could keep up with customer demand and alleviate the workload on their high-skilled resource who focused attention on setups during the first shift.
• Drones: These are no longer a pipe dream. The FAA is coming under pressure to review the use of drones as the advantages are mounting. UPS uses drones as big as cars to deliver medicine in Africa. Warehouses are using drones for cycle counting. Railroads are using drones to check on tracks. It is moving from an Amazon concept into reality.
• Autonomous vehicles: Autonomous vehicles are gaining traction in trucking. The technology exists to tether 3 tractor-trailer trucks together six feet apart on the highway. If an issue arises, they can separate, avoid the issue and come back together. This process will require 1 driver for 3 trucks, eliminating 2 jobs; however, a team of 8-10 is required to make the technology work. It will change the landscape. Autonomous trains are also coming!
• Warehouse automation: Automation has surged in popularity. WMS systems, conveyor automation and advanced technologies are increasing.
• Business Intelligence: What could be more important than having the information at your finger tips to make decisions? Analyzing trends, slicing and dicing data, and predictive analytics are trending.

What are your plans for advancing technology in your supply chain? Evaluate which technology fits your strategic direction and best supports your customer requirements and profitability objectives. If you are interested in assessing your supply chain technology and developing a roadmap and path forward, contact us to discuss your situation and objectives.

Did you like this article? Continue reading on this topic:
Digital is Key to Manufacturing in 2021

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While leading a panel “Building Resiliency in the Supply Chain” with gurus from Georgia Tech, the leading experts in global logistics and associated research, several intriguing concepts arose. Additionally, my Association for Supply Chain Management group led a series of webinars on “Navigating through Volatility” including discussions with several logistics experts from distribution, the ports, transportation, technology and more. Many strategies for success arose during these sessions. Last but not least, my top-notch trusted advisor network, ProVisors and clients have brought strategies to light. Thus, it seemed prudent to share a few highlights.

Automation vs. Autonomy

Automation is definitely on the rise as organization determine how to thrive post COVID-19. Statistics show that the automation market is expected to almost double in the next 5 years, and experts show that plans to automate are being accelerated. For example, the automation expected in the Inland Empire in the next 10-15 years will likely be compressed into the next five. On the other hand, automation isn’t all its cracked up to be! For example, when one part of the production line breaks down, you could end up with a pile up of product and waste at the bottleneck. On the other hand, will you be the last person typing on a typewriter? What are your automation plans?

The Georgia Tech experts made the case that automation is analogous to the typewriter in essence. The new concept is autonomous so that machines and vehicles can operate independently of human control or supervision. Could these autonomous vehicles take on roles not previously possible, practical or cost effective? Almost all modes of transportation are candidates for autonomous vehicles. We typically think about trucking convoys, cars, drones and sometimes aircraft but are you also considering the impact of autonomous fork lifts, container ships, high speed trains, cranes, last mile delivery, cargo resupply, and more? With the dramatic rise in e-commerce, autonomous drone resupply could be quite the win.

What are the Impacts?

Client examples abound. A small aerospace manufacturer automated a critical production process. Prior to automating this process, the area was a constant bottleneck. Work-in-process was stockpiled in front of the workstation as high-skilled workers tried to keep up with the incoming flow of material. They ran as much overtime as feasible to try to keep product flowing to the next process step so that they could meet the customers’ ship date, but it was a never-ending battle with no end in sight. After automating the manufacturing process, the high-skilled resources set up the machines to run throughout the night autonomously. Suddenly, our client was running a three-shift operation with the same resources, and customers didn’t experience delays. There was a bit of upfront investment in machinery and equipment as well as setup and education; however, it paid back almost immediately with increased output and sales.

From a logistics point-of-view, WMS systems are gaining traction in the current environment. there are countless options for automation as well as autonomous capabilities within the warehouse. For example, clients have installed conveyor systems which connect directly to the WMS systems and shipping systems which connects to ERP systems to manage order fulfillment processes. With the rise in e-commerce (and the number of small packages and associated labor requirements), automation can be even more relevant to the bottom line. In fact, there are several options to replace pickers with automated processes. The future will look to automation and autonomy. Will a drone resupply trucks that delivering e-commerce orders?

What Should We Do?

Get up to speed on the possibilities and potential of automation as well as autonomous machinery and vehicles. As you hear about additional examples, think through the concepts, look for additional applications, and brainstorm with colleagues on how these concepts could help your company and/or industry. The best ideas come from those who are willing to voice their ideas, test them under controlled conditions and move forward no matter the obstacles. Create this type of environment at your company, and soon suggestions for automation and autonomous processes will rise to the surface.

We discuss these types of strategies in our eBook on Future-Proofing Manufacturing & Supply Chain Post COVID-19. Additionally, follow the IEEP, APICS Inland Empire and LMA Consulting as we communicate progress on the consortium for logistics and advanced manufacturing success Check out our articles and webinars, and contact us if you’d like to brainstorm these concepts further.

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November 1, 2019

In reading an Cnet article on drones, it is clear drones are more than an Amazon pipe dream. In fact, NASA Administrator Jim Bridenstine said that he expects at least one U.S. city to have have the ability to control hundreds of unmanned aerial systems by 2028. NASA is using a “grand challenge” incentive program to improve the technology’s maturity, and there are many key companies working on drone technology. Of course, Amazon is one; however, they are joined by folks like UPS and Uber Elevate. Drones will become a reality.

One of our clients makes drones for military use, and they have a “mini Cal Tech” feel. The future will be in the hands of those who can transform technology into practical applications, improving the customer experience and the bottom line simultaneously. Are you thinking about how drone technology and other technologies might impact your industry, your company and your employees?

What Should We Consider and/or What Impacts Could Arise?
Certainly, there are a vast number of challenges in flying commercial drones especially in dense population areas like Los Angeles. However, as NASA says, with the brightest minds thinking through how to bring this to a reality, it will occur. The only question is whether you will be surprised and left in the dust by the impacts or whether you will be positioned to thrive. We plan to ensure our clients are thinking ahead to be squarely in the “thrive” category!

Drones might seem unrelated to our immediate future and to our business. However, if we receive anything or ship anything, I imagine drones might be relevant. Perhaps we should re-think the impact. And, more importantly, it isn’t the drones themselves; instead, it is the technology and that translation of technology into practical applications. Whether it is autonomous vehicles, artificial intelligence, the internet of things, blockchain or another buzzword, the key question is whether we are thinking about our vision and objectives and how we can leverage technology to accelerate our progress towards these objectives. Now that is worth something!

Since we are unveiling another LMA-i, LMA Intelligence category of Future Proofing Manufacturing & Supply Chain, this is quite relevant to preparing to successful navigate your future. No matter what happens in the volatile global marketplace, if you are set up to thrive no matter the conditions, you’ll come out ahead. Stay tuned for article archives related to future proofing, just as we have for the Amazon Effect, the Skills Gap and the Resilient Supply Chain.

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Artificial intelligence is increasingly becoming a vital part of the leading supply chain companies and is transforming the supply chain system at a very fast rate, even though many companies aren’t ready for it. The new inventions in the logistics IT solutions & various supply chain technologies are leading the organisations to leave their mark of presence in the race of digitisation. The inculcation of AI in the supply chain will help in collecting the data from various different sources and generate that intelligence, which will further help in making the predictions based on the historical pattern of that particular data. This will help in a smooth running of a cognitive supply chain.

The following trends are responsible for transforming supply chain business:

              1. Autonomous vehicle

Various Automotive Industries that are using artificial intelligent applications involve driverless cars that have received the most attention during the rise of this era. Driverless cars are no more a dream. With the development of technology where powerful computers, GPS systems and other small but distinct notable improvements have come up, Driverless cars are no longer a dream. Making all the procedures technology pro and highly efficient.

              2. Robotic solutions

Robotics solution is the one taken up by many distinctive companies for managing warehouse automations. Companies are using artificial intelligence to forecast what order inventory will arrive and leave the warehouse, allowing the pallets to be placed in the correct positions, boosting efficiency in moving products. Such technologies work best under the influence of efficient warehouse management system only.

            3. Drone deliveries

The popularity of drones is swiftly increasing across various industries like e-commerce and logistics. But still, the growing number of drones is posing new challenges like increasing air traffic, laying optimum air routes, dealing with emergencies like collision and managing drone swarms, among others etc. AI enabled drones are eliminating the last mile delivery challenges as it allows drones and other machines to make decisions and operate on their own on your behalf. AI enabled drone delivery is going to be very beneficial for the local deliveries.  

AI is driving the evolution of digital supply chain networks. As we step into the future, there are various AI powered supply chain analytics softwares that empower you to make decisions proactively based on the diverse data across your supply chain. It helps in making your supply chain responsive and enables you to have a real-time control on your supply chain.

This initiative can help supply chain managers to be more dynamic and efficient in designing strategies. Investing in AI is an important next step for supply chain companies looking to lower costs and improve productivity. Supply chains can also use AI to minimize the repetitive manual tasks and begin automating processes. This can enable the companies to reallocate time and resources to their core business.

Author Bio-

I am a budding and aspiring blogger and my area of interests are Supply Chain, Logistics, Retail Logistics, international Freight etc. Being a writer by profession and by choice I like to contribute to various quality websites especially those who talk about my area of interests.

We grow by making people happy and successful.

Jyoti Sharma

Consultant/Writer

Holisollogistics.com

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To think about what’s ahead in technology, it is important to put it in perspective with what’s ahead in business.  Read our article, “What’s Ahead in Business?” for details on the key trends impacting business:

1. Importance of the customer experience
2. Taking the holistic view has become a “must”
3. Volatility is the new norm
4. The coming power of manufacturing and supply chain

What’s ahead in technology lines up with these same themes. In order to achieve scalable, profitable growth, technology is an important enabler. The most relevant technology trends include: 

1. ERP upgrades – More and more companies are realizing that their system infrastructure must keep up with business requirements and customer expectations. As tough as an ERP upgrade can be, it is one of the only ways to make the leap from manual, labor-intensive processes to providing a superior customer experience efficiently.
2. e-commerce/ customer portals – Amazon. Alibaba. Customer collaboration. Need we say more?  
3. Business intelligence & data analytics – We are overwhelmed with mountains of data. We are so anxious to gather data yet we don’t seem to have the appropriate information at our fingertips when we need it. That’s where data analytics comes into the picture. Beyond that, predictive analytics is gaining steam.
4. Artificial intelligence – even my Mom counts on Alexa. In addition, who wouldn’t want a car that self corrects? Predicting customer patterns and behaviors is becoming more important. AI is set to transform many industries over the next several years.  
5. IoT– Smart factories. Smart homes. Connected devices and machines. According to NEWGENAPPS, 60% of global manufacturers will use analytics data tracked using connected devices to analyze and and optimize processes. 
6. Robotics & automation – Robots aren’t taking over the universe tomorrow morning, but they are working hand-in-hand with people to achieve many benefits such as to improve safety, increase speed and consistency, improve customer satisfaction, fill capacity shortfalls and and increase productivity.
7. Autonomous vehicles – Beyond self-driving cars and trucks, autonomous vehicles are used widely in manufacturing and distribution environments.  

Are you thinking about which of these technologies will support your business objectives?  Or which are likely to impact your industry?  Consider technology as a key part of your strategy and plans. If you’d like an expert to evaluate which, if any, of these technologies will be relevant to your business, contact us.

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In today’s Amazon-impacted, Uberian environment, technology opportunities abound!  Beyond ERP and related subsystems, there is IoT, blockchain, robotics, autonomous vehicles, predictive analytics and much more.  Should we invest or not?  Clearly, if we invest in every one of these opportunities, we could “go broke”.  How do we decide?  And will it help us create a resilient supply chain?

The answer:  It depends!  

Our best clients follow a similar process and answer the following questions:

1. What is the state of the industry?  What disruptors are likely to impact the industry?  What trends are occurring?  Where do we see it going?
2. How do we stand in the industry?  How are we positioned?  What is our unique value proposition?  What differentiates us from the competition?
3. What is our technology/ IT infrastructure?  Does our ERP system support our current needs?  Does it support our growth?  Is our ERP partner aligned with technology partners that can help in expanding our future technology capabilities?  The bottom line – where are we starting?
4. What is our vision?  Understanding where we want to go is relevant.  What will it take to achieve our vision?  Do we know what people, processes, systems/ technologies and culture change will be required to attain our vision?
5. Is the technology required to achieve the vision? (given our competitive differentiators and changes occurring in the industry)  Adding technology that doesn’t support our vision might be exciting but doesn’t support the future whereas not investing in technology required to support our vision is also problematic.
6. What are the priorities?  If there are several technologies required to support progress, which are required first in terms of sequence (if relevant), which have the greatest impact, and which are urgent to meet a customer need or avoid a negative consequence?   

The Bottom Line:  

Don’t invest because everyone is investing; invest because it supports scalable, profitable growth.

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Will artificial intelligence and automation impact your industry?  Most likely the answer is yes; the only question is how.  At the very minimum, you should be paying attention so you can make sure you are taking potential advancements into account in your strategy.  

In the accounting industry, AI has the opportunity to transform and automate a significant number of jobs.   Manufacturing has already been impacted by automation.  Of course, it is likely to continue to evolve; however, it has the potential to transform the logistics industry.  Perhaps we better think about potential applications:

1. Instructions – Artificial intelligence certainly seems to come in handy when it comes to fixing issues and reviewing instructions.   
2. E-Commerce– AI certainly helps to find like-products and complimentary products when purchasing through an e-commerce portal.   
3. Intelligent virtual assistant– AI can learn how you respond to tasks and requests and answer for you with repeatable and mundane tasks.
4. HR recruiting– Although arguably not as good as an excellent recruiter, AI can find qualified candidates and eliminate legwork in the recruiting task.
5. Autonomous vehicles– Starting within the plant and expanding to trucks and elsewhere, autonomous vehicles are being used to increase efficiencies and reduce risks.
6. Robotic picking systems – This is one of the largest risks in terms of current logistics operations.  Just as manufacturing has been automating so will logistics operations.  It will be a ‘win’ for costs, efficiencies and speed; however, are you prepared?
7. Maintenance – why go through the long and arduous “old school” view of preventative maintenance when you can look at data and predict exactly what needs to be maintained before it breaks down?
8. Customer demand – the better data on customer demand, the better the entire supply chain can run – quick, efficient and low cost.  
9. Repetitive tasks – anything that is repetetive is a good candidate to automate.  It will be more repeatable, more consistent quality and lower cost.  Are you looking for opportunities?

Don’t just look at what will directly impact your company.  Review impacts to your end-to-end supply chain.  What is likely to disrupt your customers?  How about your suppliers?  What can you do to get in front of it?

Lisa Anderson

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