Blockchain, artificial intelligence, and robotics are some of the 3 hottest technologies to grace the business stage if the media is to be believed. Have they hit the mainstream in major industries though? We took a look at the state of adoption in the supply chain world, and here’s what we found.
Are Supply Chains Warming to These 3 Hottest Technologies?
Media coverage of the supply chain sector, and indeed, industry in general, is abuzz with hype about the latest and greatest technologies, such as blockchain, artificial intelligence, and robotics.
Does the rate of adoption reflect the promise these innovations hold though, or is it a case of much talk and somewhat less in the way of action?
That’s a question best answered by studying trends in uptake across the many types of enterprise that rely on logistics and supply chain management to keep the revenue rolling in.
We’ve taken a look at the state of these talked-about technologies, and drawn the following high-level conclusions.
Are Businesses Busy with Blockchain?
Pundits claim that blockchain technology, a distributed and immutable system for documenting transactions, will disrupt the supply chain industry substantially over the next ten years or so. However, at this point, it is a solution employed mainly by the most significant industry players, and even then, is primarily applied on an experimental basis, albeit to solving a range of supply chain problems.
MHI recently released a report about the state of digital adoption in the supply chain world, which revealed that only around 10% of enterprises are actively using blockchain today. Rather more (62%) say they expect to implement blockchain solutions over the next five years.
Is the Industry Ready for Blockchain?
Of course, stated expectations mean little given the speed at which technologies are emerging, maturing, and being superseded, so the report doesn’t exactly hint at a meteoric rise in blockchain adoption.
Other sources highlight several hurdles obstructing the uptake of blockchain applications. The common theme that all commentators seem to agree on, is that there are few proven use-cases for the technology, with most projects still at the proof-of-concept stage, and that enterprise decision-makers are not sure about what problems it can solve and how it will do so.
In other words, despite all the hype, blockchain does not look imminently to become a mainstream supply chain management tool.
Is AI Adoption Advancing?
It’s interesting that in the MHI report mentioned above, blockchain is mooted to form part of the foundational level of a pyramid relating to digital transformation in the supply chain industry. In the same hierarchic schema, artificial intelligence sits at the very top, yet AI adoption, while currently slowing down, is by all accounts enjoying a much higher level of active use in supply chain organisations.
“Blockchain is like the new big data or AI – too many people are using it as a buzzword and not focused solving a real problem. We like to call them Blockchain tourists!”
— Brad Garlinghouse, CEO at Ripple
The slowdown is attributed, like the hesitant adoption of blockchain, to an absence of clarity among businesses, relating to the strategy for AI’s integration into their operations.
Nevertheless, artificial intelligence adoption rates are still healthy, with nearly 50% of companies claiming to have at least one AI capability in use, according to a 2018 report by McKinsey.
The report states that even among non-digitally-savvy enterprises, AI adoption is at 47%, while 67% of companies with high digital awareness have the technology in place. The following artificial intelligence capabilities are the most commonly adopted by supply chain organisations:
- Process automation
- Computer vision
- Machine learning
- Chat bots
- Speech and text understanding
While a lack of clear strategy is a stated reason for companies spurning blockchain, the same clarity issue surrounds AI. Curiously though, many companies have embraced artificial intelligence, even absent the strategies to exploit it.
Artificial Intelligence is Driving Real Supply Chain Improvement
The State of Robotic Readiness
Robotics could be lumped together with other AI capabilities when discussing technological adoption, but is probably deserving of a discrete appraisal, due to its visibility.
After all, everyone seems to have a reaction to seeing a robot hard at work, while many other AI elements are buried deep in a company’s server room or hidden in the cloud.
“This is the debut presentation of what I think will be a nightmare-inducing robot” — Marc Raibert, CEO, Boston Dynamics
Yes, The Robots Are Rising
Amid camps divided on the question of whether or not human society should be worried about the potential for robots to steal jobs, digitally-driven automated equipment appears to be the most convincing success story of all in the supply chain environment.
“Like the rise of industrial robots in car manufacturing, automation is helping the supply chain industry respond to consumer pressures for faster service, more choices, and greater customization. Businesses that best leverage advanced automation and technology will become new market leaders.”
— Joel Reed, CEO, IAM Robotics
The MHI report highlights just how positively robotics are being received in the industry, with growth much more prevalent across larger enterprises. Unlike the other technologies discussed above, smaller businesses are not reticent to adopt robotics, but are still held back by ROI and cost concerns.
That’s a situation that appears to be changing though, with the advent of robotics-as-a-service (RaaS), which enables SMEs to access robotic hardware, control systems, and professional support on a pay-as-you-go basis.
Two Out of Three’s Not Bad
It seems then, that robots, while scary for some, are the current darlings of technological innovation in the supply chain, while less visible AI applications are finding a solid footing. Blockchain seems to have a less secure future, although the hype train is not slowing down.
“Some of the uses being implemented for blockchain could actually work better with a database.” — Brad Garlinghouse, CEO at Ripple
Low levels of blockchain adoption would seem to correspond with the fact that more conventional centralized databases and ledgers still have more than enough to offer most enterprises.
Perhaps blockchain will simmer on the back burner until a few proven use cases—maybe Maersk’s shipping solution and Walmart’s provenance program—inspire confidence that it genuinely has something concrete to offer.
Rob goes at everything at one speed, 100 mph. Probably due to his ADD! It gives you multi-tasking “on steroids”! Was always in trouble!
Grew up believing he was stupid and started ‘going off the rails’. Thrown out of School at age 15 and told he would never amount to anything. With ‘no other option’ joined the Army at age 15.
The discipline and structure was just the right thing at the right time. A Sergeant at age 22, he was ‘pulled aside’ and told to stop playing around and apply for a Commission (Officer Training)
With a great Boss (great mentor) providing support and organising extra tuition and leadership training he made it Officer training in 1981.
Aged 24. Then things took off.
Ask him what his job was in the Army! (interesting stories, not Logistics). Early promotions took him to the rank of Major at age 29, and a sponsored place to study a Masters Degree in Logistics. After 3 years teaching Logistics at the Army School of Logistics he took early ‘retirement’ and moved to Australia in late 1993.
Within a month or arriving in Australia, he had bought a house, enrolled the kids in school and started a new job.
And so his ‘second life’ as a Management Consultant started with well-known consulting firm Dawson Consulting.
After three years he leaves to start his own consulting company, Logistics Bureau in 1997.
A few years later,
He acquires Dawson Consulting.
Acquires another consulting business Benchmarking Success.
Opens overseas offices in 2000
Starts his own education business in 2012.
Writes 6 books, so far…
Starts his own not for profit conferences, just because he believes conferences should be good, cheap and open to anyone.
In 2012, founds and funds a Social Enterprise in the Philippines called Virtual Done Well, that provides Virtual Assistants to help small business owners (this business runs a number of charitable programs in the local community).
In 2012 becomes a business partner of the ‘Business for Good’ program allocating a proportion of profits to a range of Worthy Causes around the World.
In 2015, discovers the ancient Christian Pilgrimage known as the Camino de Santiago. An 800 km walk across Spain. Walks alone, grossly overweight and unfit, but fuelled by his Pig Headedness and ADD………..makes it in one piece. Along the way, discovers himself, and a greater purpose. Amongst other things. (another long story, you have been warned)
Now planning his 4th Camino Pilgrimage!
And at age 62, (as at 2020) will probably never retire, but plans to arrive at the Pearly Gates at some stage, slightly worse for wear and in a hurry to see what’s next!
And what has this journey taught him?
To Quote John Holmes………. (the Poet not the Porn Star)
“There is no exercise better for the heart than reaching down and lifting people up”
Available to speak passionately about anything under the Sun, as long as it involves “Empowering Others to Succeed”
(But he doesn’t do bar mitzvahs or weddings………….)
