With the rise of AI in 2023 and beyond, experts say that businesses need to consider implementing AI systems into their existing processes, to be more efficient and keep ahead of competition. Sometimes this is easier said than done. Mckinsey & Company compiled a study on how to succeed in the AI Supply Chain revolution. They came to the explicit conclusion that new technologies could be transformative, but only if executives properly prepare their organisations accordingly. Several companies have successfully implemented end-to-end supply-chain solutions. However, many face common pitfalls in their transformation, causing more than 60% of projects to be late or over budget. 

McKinsey’s survey highlighted the biggest risks to implementation which are inefficient change management, poor process design, and missing capabilities. 

Various areas in the business need to be addressed to implement Supply Chain solutions successfully, as mentioned below. 

An end-to-end approach to supply chain optimisation

A value-creation roadmap

Companies need to prioritise creating value in different business areas, and across all functions, such as procurement, manufacturing, and logistics. At the onset, they can perform an independent diagnostic so they can see all the value-creation opportunities available, and then create a supply-chain strategy that is clearly defined and aligned with its digital program. Following that, they can use a solution-agnostic assessment to see what process redesign, organizational changes, and capabilities are required, to solidify the strategic roadmap. 

Type of solution and vendor selection 

The complexity of supply chains means that one provider might not always be able to meet their needs. Often, the best approach is a combination of different solutions from different providers, implemented by different system integrators. 

Implementation and systems integration 

Only 25 percent of supply-chain leaders report that their objectives are successfully aligned with the incentives of their systems integrators. Many companies face challenges with implementing organisation-wide technology, and don’t have enough experience in doing so. Once they select solutions, they face the risk of falling behind the implementation schedule, being over budget and losing focus on the primary objectives. It is recommended that companies should take a holistic approach to implementation and systems integration. By optimising the end-to-end value, companies can implement solutions that deliver value in the short term and are more sustainable over the long term. 

Change management, capability building, and capturing full value

While implementing tech solutions, companies need to focus on supporting elements, such as organisation, change management, and capability building. This includes addressing skills gaps, providing opportunities for employees to embrace new ways of working, and educating the workforce on why changes are necessary, and creating incentives to reinforce the desired behaviours. Business ROI can only be captured when the technology matches the organisational changes, business process updates, and upskilling efforts. 

INControl’s advanced team works with you Side-by-side, to ensure that our 4PL software is aligned with your business processes and objectives. We equip you with everything you need to get the most success out of our technology, manage the digital changes, and optimise your supply chain with great success. We provide you with comprehensive support, tools, or resources to pivot without facing excessive risks. 

Speak to us today, and we will guide you through your supply chain and digital transformation journey.