Did you know that nearly nine out of 10 supply chain executives (86%) are already making moderate to significant investments in artificial intelligence (AI)? Yet, only 38% see their workforce advancing in the new skills they’ll need to be successful in a digitized world.
That’s a disparity we need to solve for—fast--especially in the U.S. South which has become a fast-growing economic engine for the United States. The South is home to 4 of the top 10 metro areas in the country and becoming more digital by the day. Tesla’s move to Austin is one of the most visible recent headlines, but it is one of many digital technology companies that have relocated or expanded their operations in the US South, and our workers need to be up to the task of operating in a rapidly accelerating and changing environment.
Three areas of supply chain see shift in roles
Supply chain has become a very important topic as the economy has been disrupted by the pandemic and roles across the supply chain are already changing as machines infuse a new kind of intelligence into operations. Here are some examples of that looks like in three key functions where AI is already playing a bigger role:
Procurement professionals are making more strategic choices for their businesses by interpreting AI-generated supply insights to find more business value while using digital technologies to automate repetitive tasks.
In manufacturing, data rich algorithms compile labor, production, and supply information, helping factory managers optimize plant operations. With more information available, manufacturing managers can make better decisions, including predicting potential production risks.
In supply chain planning, we see a huge shift growing. AI helps collect data, accurately predict results, and identifies trends and patterns at a speed and depth that exceeds human capability. Demand planners can apply algorithm output to make optimize ordering and logistics choices. They can recognize where supply challenges might occur allowing them to react more quickly and accurately.
But to do all these things, businesses need to think bigger about investing in their talent with training and education.
Taking it real-world in Retail and Energy
So, what does this mean in the real world? We’re already seeing large retail and consumer goods companies pilot an initiative that uses AI to break down and analyze the skill sets of select roles to find overlaps and gaps in skills.
The project illustrates an interesting fact: people don’t always have to completely reinvent themselves for a new role. In some cases, they only need to pick up a few additional skills to switch disciplines entirely. AI proved to be pivotal to the pilot. For example, when asked to identify their skills, the average worker names 11 of them. But when AI maps that same person’s skills, the number is closer to 34—allowing for more possible new roles if their old role is becoming obsolete.
Skills mapping works in more technical industries like Energy also. At Accenture, we worked with an energy company’s procurement function to modernize it. First, the team created a talent profile dashboard for 1,200 employees, based on an analysis of structured and unstructured data.
The team then developed algorithms to match job descriptions and talent profiles, optimizing employee assignment to roles. They also built and ran 12 AI-powered scenarios to provide job placement options, so the company’s leadership team could discuss job matching and optimization.
We are seeing similar experiments across all industries as companies look to transform their workforce for the future.
Initial steps to putting your people first
You may be wondering how to begin such a complex undertaking. Here are three first steps to think about to guide your company in the right direction.
1. Develop new skills, at scale, using AI and analytics. Data-driven job placements like the one we helped an energy company with, use AI to match similar skills from old roles to new roles. Then, supply chain and operational leaders can create a plan for effective, responsible skilling.
2. Involve people in digitization from the start. Allow employees a personal stake in the change. Instead of relying on a handful of C-suite executives, companies that use this strategy let employees drive projects. They give them autonomy and encourage them to innovate with a fail-fast/learn-fast environment.
3. Foster the traditional non-digital skills that are still valuable to your organization. While supply chains are accelerating to become more digital, there’s still a big need for the traditional skills that support most companies’ supply chain operations. Workers like mechanical electricians, plumbers and maintenance technicians have the hands-on experience and expertise that keep things running. They’re doing things that haven’t been or can’t be fully automated. These skills cannot be forgotten
Digitization is just the latest impetus for transformation and there have been many others over the years. The key difference now is that we, as leaders, have to remember that people come first. It’s humans andmachines, not humans or machines. Should you digitize your supply chain? Absolutely. But be sure to bring your people along for the ride. You’ll need them.