Big data analytics has demonstrated the use of predictive analytics for identifying the sources of supply chain disruptions resulting in improved Supply Chain Resilience (SCRes). Firms should develop analytical capabilities to enhance the SCRes by effectively utilizing the resident firm knowledge, according to a report by the International Trade Union Confederation of American Chambers of Commerce and Industry.
In the face of hyper-connected networks, increased cyber threats, increasingly competitive settings, and shifting customer expectations, businesses must adapt and change. To promote collaboration and cooperation, resilient businesses must make use of technology breakthroughs in automation, artificial intelligence, and the Internet of Things. Developing AI-driven innovation is beneficial since it speeds up the decision-making process when it comes to developing, prototyping, and testing new solutions.
In the current context of COVID-19, Sachin Kamble, Professor of Strategy at EDHEC Business School, recognizes the urgent necessity for enterprises to strengthen their artificial intelligence (AI) capabilities to achieve supply chain resilience.
According to a new report, managers should understand the importance of creating AI-based information processing capabilities to improve AC and collaboration among supply chain partners. Managers should work to improve SCP over time by developing SCRes to deal with uncertainty and unexpected situations.
For SCC and AC to generate SCRes, AI capabilities must be integrated across all tiers of the supply chain. Most lower-tier vendors may lack the professional personnel and technological sophistication required to build AI capabilities, as well as inconsistencies in data or incompatible interface standards. Cooperation and the usefulness of exchanging information among supply-chain partners are crucial to managing risks.
