Cargo Chat: AI solutions, preparation key to mitigating crises

Supply chain operators struggle to resume operations in a timely manner after a disaster, according to a survey by supply chain software solutions company Kinaxis. The company, founded in 1995, uses AI and predictive analytics to help companies mitigate disruptions more quickly. [caption id="attachment_57142981" align="alignleft" width="211"] Matt Spooner[/caption] Kinaxis, based in Ottawa, Ontario, works with companies, including Unilever , P&G and Ford spanning the retail, automotive and aerospace industries, to “orchestrate their end-to-end supply chains from multiyear strategic planning through ... execution and last-mile delivery,” Matt Spooner , industry thought leader at Kinaxis, told Air Cargo Next . In its most recent survey, Kinaxis reported that 17% of 1,800 supply chain operators said they could respond within 24 hours of major disasters like the Baltimore bridge collapse or the fatal April earthquake in Taiwan. However, 67% of respondents said they were “not satisfied” with their response times, taking nearly a week to recover, losing money and time. Spooner discussed with Air Cargo Next how supply chain operators can better prepare for disruptions and how technology plays a vital role in creating efficient response times. What follows is an edited version of that conversation. Air Cargo Next : How can supply chain leaders better equip themselves and their companies to respond more quickly to disruptions? Matt Spooner : Supply chains [that] are more transparent and more agile are also more resilient to disruption . Supply chain leaders can enhance their responsiveness by adopting real-time data and predictive analytics technologies. A recent survey of global supply chain leaders we conducted with [market intelligence firm] IDC revealed that different industries exhibit varying speeds in responding to disruptions, with only 14% of aerospace supply chain leaders able to respond within a day. This highlights the need for tools that enable faster decision-making to effectively manage and mitigate the impact of unexpected events. Air Cargo Next : What are the greatest challenges supply chain operators face in the immediate aftermath of a disaster and what tools can help mitigate this? MS : Immediately following a disaster, the greatest challenge for supply chain operators is to rapidly understand what the impact of the event is on the supply chain, and what trade-off decisions need to be made to keep operations running as effectively as possible. Tools that provide visibility into supply chain operations and enable dynamic scenario planning are vital. Air Cargo Next : How is advancing technology aiding disruption responses? MS : Advanced planning technology provides a platform, with far greater transparency across the end-to-end supply chain, where humans can collaborate to resolve complex issues, supported by AI and advanced optimization . Investing in advanced supply chain orchestration tools, which provide real-time insights, scenario-planning capabilities and rapid response functionalities, enables companies to foresee potential disruptions, evaluate the impact of different scenarios and implement the most effective responses swiftly. This helps in maintaining continuity and minimizing the impact of disruptions on operations. Disruptions have become the new normal. ... Embracing AI-powered concurrent supply chain orchestration tools is becoming indispensable for navigating the inevitable black swan events with agility and precision. As the old adage goes, failing to plan is planning to fail. By undertaking ‘what if?’ scenario planning, companies can gain instant visibility across their entire network, from supply to demand, logistics to production, so that they’re ready for whatever curveballs come their way. Air Cargo Next : Is there anything else supply chain operators should be aware of? MS : Global disruptions such as labor disputes and the escalation of conflicts in hotspots such as Eastern Europe or the Middle East are all impacting the movement and production of goods worldwide. In addition, climate change is expected to continue to bring record-breaking temperatures and extreme weather such as a more intense hurricane season. All of these factors will cause organizations, including those involved in the aerospace industry, to either plan and build resiliency into their supply chain or be forced to react to mitigate the impact they will have on their operations. Companies across all industries are now operating under almost constant disruption with these instances demonstrating just how challenging it is to both produce goods and get them from A to B.

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