Big Ideas in Supply Chain

Why do emerging supply chain technologies initially disappoint?

Episode Summary

Many supply chain leaders can feel disillusioned given the hype around technologies like AI, IoT and blockchain – but there’s a way to close the gap between hype and hope. Hear Kinaxis Chief Strategy Officer Anne Robinson discuss how to evaluate and prioritize expectations of these new technologies, learn technology details from consultants and vendors and finally identify the best solution to transform your supply chain planning with Professor Mohan Sodhi at Bayes Business School, Faculty of Management.

Episode Notes

• Mohan Sodhi conducted a survey project to determine what mid-to-senior level supply chain managers are expecting from three of the most popular new emerging technologies mentioned in the Gartner Hype Cycle: artificial intelligence (AI), Internet of Things (IoT) and blockchain. 
• Sodhi expected to learn that each technology had unique constraints and questions from the supply chain managers. Instead, he learned that supply chain managers saw all three as “indistinguishable” on the survey. 
• Supply chain managers aren’t certain what these emerging technologies will do for their supply chain, based on their expectations and priorities. Each technology goes through a path of discovery to “a peak of inflated expectations” before landing in the “trough of disillusionment.”
• Sodhi says true learning begins after this “disillusionment” phase as supply chain managers learn more about what each technology can do. 
• To accelerate through the inflated expectations and disillusionment stages, managers can make a list of requirements and what they want from their supply chains, and what they cannot currently do, and share that with consultants and vendors to help distinguish which technologies best meet those needs, thereby moderating expectations.
• Sodhi recommends sharing information within your supply chain about what you’re actually expecting from this new technology and the mutual benefits that may go beyond your own company and help your market sector. 
• Robinson recommends companies interested in starting a supply chain planning transformation learn as much as possible from consultants and vendors through activities like customer conference calls to learn which technologies are the best fit for problems you’re trying to solve. 
• Sodhi says his top concern for supply chain transformation going forward is planning for survival in the next 10 to 20 years given global warming and other factors. This will mean sharing critical information with others in the industry, even competitors, to help supply chains as a whole survive whatever comes next. 
• Link to visit Professor Sodhi’s report: https://onlinelibrary.wiley.com/doi/epdf/10.1111/poms.13694