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The COVID-19 pandemic has changed the business environment for many organizations around the globe. According to a survey conducted by The Institute for Supply Management, nearly three quarters of the companies it contacted in late february and early march reported some kind of supply chain disruption, and 44% of the respondents did not have a plan to deal with it.
By understanding how COVID-19 has disrupted the supply chain, organizations can establish the right plan and be able to respond, adapt and set up crisis management to face the unexpected. Below are the few ways COVID-19 has impacted the supply chain.
To succeed in today’s competitive world, organizations must blend digital and human capabilities with proper planning and comprehensive supply chain AI. Several enterprises today are turning their trust towards machine learning in AI, the reasons are to improve capacity planning and accurate demand forecasting. According to research firm Gartner, atleast 50% of global companies would use AI-related transformational technologies in supply chain operations by 2023 and by 2025, at least 90% of new enterprise apps will have embedded AI capabilities.
Brands like Siemens and Amazon have already started implementing Artificial Intelligence into their supply chain systems. As per MHI annual industry report on Supply Chain Disruption, Robotics and Automation has jumped from fifth(previous survey) to first place(latest survey), with 67% of respondents believing it has the potential to disrupt supply chain or create a competitive advantage.
While many companies know the importance of Artificial Intelligence in supply chain management, most do not utilise it due to a lack of understanding about its impact on customer demand and regulations. As we move into the future, having the right machine learning and AI technologies will help the organization do better planning and set up proper crisis management, and it is essential to learn from recent events to be better prepared for the future.
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