The supply chain has an IT problem. Specifically, just 1.6% of job openings include the term “artificial intelligence or AI, and only 6.5% of mention the term “automation.”
A significant discrepancy between business goals and the software and technology necessary to meet them adds up to a major digital transformation shortfall in the industry, creating cracks in an increasingly serpentine process, according to cloud company Cleo’s second Supply Chain Jobs Report, an analysis of 925 publicly available supply chain job openings in the U.S. from Oct. 1 to Nov. 30.
The results point to persistent dependence on manual processes such as “swivel chair automation” (where someone views two computer screens and makes decisions) at the expense of digital-first strategies that could enhance efficiency and speed considerably, says Tushar Patel, chief marketing officer at Cleo.
“Many companies in the industry have cobbled together solutions through third parties and solutions of their own,” Patel said in an interview. “Most companies have not made the jump. Orgs are either trying to figure out things, become more comfortable with AI, or steer clear because there is a fear of job losses. But those who adopt AI tend to create new jobs.”
Some of the survey’s eye-popping findings: Just over half (54%) of evaluated supply chain jobs include some form of software knowledge, and less than a quarter (21.4%) required crucial supply-chain technology like enterprise resource planning knowledge.
About 5% of job openings included broad data management responsibilities (“data management,” “data visualization,” “data mining,” “data insights,” and “data-driven decision making”) essential to integrating information throughout supply chains.
The fragility and complexity of a globally interconnected system with so many points in-between has put a premium on pricey technology such as smart containers, real-time monitoring systems, and automated checkpoints to shore up gaps. Recently, two more technologies have emerged as alternatives — blockchain and cybersecurity.
Above all else, AI might ease or exacerbate headaches for suppliers and third-party logistics providers (3PL). A study on logistics from Penn State University, in collaboration with NTT DATA and Penske Logistics, makes the case for AI.
“While users and providers of 3PL services continue to report successful relationships, they find themselves having to deal with an increasingly wide range of challenges,” Dr. C. John Langley, professor of supply chain and information systems at Penn State University, said in a statement. “While examples include economic concerns, geopolitical unrest, and changing markets for supply chain services, they also are taking advantage of change management processes to benefit from new and improved capabilities such as AI and direct-to-customer proficiencies.”
