Modernizing the supply chain with automation and more sustainable practices – Transport Routier

It’s no secret now that the global supply chain has been seriously marred by more than two years of COVID. After 40 years of “Just in Time”, the weaknesses of this system have finally come to light. To partially remedy the volatility of demand, transport costs, the shortage of labour, semiconductors and raw materials, losses in efficiency and the vagaries of manufacturing production, it there will beautomation of practices and the circular economy.

Modernize your supply chain

These solutions are those favored by supply chain managers (RCAs) who were surveyed recently and whose findings have just been published in a report. This document, titled The resilient digital supply chain: How intelligent workflows balance efficiency and sustainability (The Resilient Digital Supply Chain: How Smart Workflows Balance Efficiency and Sustainability), was co-prepared by IBM Institute for Business Value, Oxford Economics and Celonis.

Based on the expertise of some 500 RCAs from ten different economic activity sectors, including transportation, the document states that 72% are convinced that the automation of their processes will be done within three at five years old. They are 69% to say that real-time data management will go through the rapid implementation of the “Cloud”.

“The confluence of post-COVID-19 challenges, inflation and supply issues, security and sustainability has led to the most complex operating environment in modern business. This has forced organizations to rethink and rebuild their supply chains to be more agile, efficient and sustainable, says Jonathan Wright. For one who is Managing Partner, Finance and Supply Chain Transformation at IBM Consulting, automation and data-driven intelligence are key not only to assess current workflows and inefficiencies, but also to identify new opportunities. »

Data for efficiency and sustainability

To have these opportunities, RCA must optimize the efficiency of its operations, which, say 83% of them, will move to real-time inventory management based on artificial intelligence (AI) by 2025. It There are also 27% of RCAs who want workflows and production processes to be automated within three to five years.

If 74% of RCAs are convinced that the digital transformation of supply chains must necessarily pass through integration with the “Cloud”, there is another aspect on which digital management can have a positive impact on the organization: the development of the circular economy. In other words, the elimination of inefficiency and waste of resources in all dimensions of production, from extraction to delivery and recycling.

“Eliminating inefficiencies in core supply chain processes represents a huge opportunity to reduce carbon emissions at scale,” says Janina NakladalGlobal Director of Sustainability at Celonis.

This approach is so embedded in the new economic philosophy that 51% of RCAs are willing to sacrifice 5% of their short- and medium-term profits to improve their sustainability results.

In what ways?

By improving the energy efficiency of their products and services (44%), the RCAs also plan to develop them with renewable energy components (35%) or even without waste (30%). Finally, there is the intention, for 47% of them, to design their products and services according to their complete life cycle. Which ultimately means minimizing waste and making material reuse its mantra.

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Modernizing the supply chain with automation and more sustainable practices – Transport Routier


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