What is measured is ultimately improved.
And when it comes to supply chain management, this old adage couldn’t be more true.
Fortunately for businesses, despite the ongoing supply chain disturbances and operational uncertaintiesThere have never been more opportunities to move goods from point A to point B as efficiently, quickly and safely as possible.
In an era marked by rapid technological advancements and unprecedented innovations, the supply chain landscape has undergone significant transformation due to the interplay between solutions built leveraging artificial intelligence (AI), of machine learning (ML) and significant advances in accessibility and cost. computing power.
“The culmination of these three elements has revolutionized the way we think about supply chain processes, from forecasting demand to understanding customer needs at a granular level. » Parvez MusaniSenior Vice President, End-to-End Fulfillment, Walmart US Omni Platforms and Tech, told PYMNTS.
“The integration of AI, ML and vast computing power, combined with an abundance of data, has transformed our approach to demand forecasting, inventory flow and cost optimization” , Musani said.
Yet despite these technological advancements, some elements of the supply chain have remained constant and unchanging.
“What has remained constant is the importance of agility and security…and customer requirements haven’t changed either. They want things when they want them, where they want them and how they want them,” Musani added.
And despite the propensity for unexpected events and disruptions to disrupt supply chain planning, it’s ultimately up to businesses to meet their customer’s growing expectations for convenience – or see those customers turn to competition.
Navigating the Evolution of the Modern Supply Chain
The integration of data from various sources, including IoT devices, customer interactions, weather conditions, social media trends and macroeconomic conditions, has revolutionized contemporary supply chain management by enabling businesses improve inventory accuracy, reduce operational expenses and accelerate network speed, thereby improving the shopping experience for customers.
“The advent of smartphones has provided us with real-time data that improves our visibility and allows us to respond proactively,” Musani said, emphasizing that this data integration is crucial to maintaining agility and responding effectively to needs. customers.
He added that he envisions the ideal supply chain as highly integrated and data-driven, where “all decision-making is automated,” with resilience and reliability at its center.
Today, this vision translates into a seamless flow of information throughout the supply chain, based on real-time visibility and AI-driven decision-making. “We leverage AI to simulate potential disruptions and prepare proactive responses,” Musani said.
This proactive approach ensures Walmart is well prepared to deal with disruptions, from natural disasters to sudden changes in customer behavior, and Musani emphasized the importance of flexibility and agility in supply chain operations when it comes to consistently delivering on promises made to customers.
“Customers who can rely on you during difficult times will reward you with business continuity… Businesses must be able to adapt quickly to disruptions,” he said. “Having relief points in the supply chain, such as setting up new nodes or stock flows directly to customers, can help manage increases in demand. »
Embracing Technology for Supply Chain Resilience
And as AI and automation become an integral part of supply chain operations, the nature of the supply chain function itself is evolving.
“Jobs are becoming more fulfilling and highly skilled,” Musani said. “Automation eliminates mundane tasks, allowing associates to focus on more efficient work. »
This change not only improves job satisfaction but also transforms roles into meaningful careers.
Walmart’s Emergency Operations Control, which includes representatives from all parts of the organization, plays a critical role in disseminating information and coordinating responses. “By sharing live information and implementing actions based on our AI-driven simulations, we can effectively manage supply chain risks,” Musani said.
Looking ahead, Musani’s key message for supply chain leaders is clear: embrace technology. “AI and ML are transforming supply chains into technology-driven ecosystems,” he said. “Automate decision-making, anticipate disruptions, and invest in a reliable, reconfigurable supply chain. »
As he said: “The best times are yet to come for supply chain innovation. »
