Digitization 2022

2022-Year of IOT, Data, 3D Printing, AI, & some other supply chain tech. It’s affordable, why don’t you have it? Every morning for two years straight, supply chain whispered in my ear, “Your mom loves your brother more than you.” Does this feel political? It’s not, it’s an inflatable balloon, just asking.

So now, supply chain management (SCM) is a sophisticated and well-organized system for consistently delivering, affordable cost products to consumers. The hardest part of my existence over the last 8 minutes was saying the above without a slight giggle. If collaboration were to be at the forefront of the minds which have the largest sway in the category we’d likely collectively understand that goods aren’t reasonably priced because of our logistics network, goods are affordable due to the supply abundance. It’s like we got caught with that cigar you snagged from the neighbors house when you were 15 The facts are, we are stuck. We are stuck in an archaic yesteryear of technology at an enterprise level as it would essentially be the labor, time, and energy equivalent of at least 4 dozen inflatable human resembling figures with long arms, outside of a car dealership for 2 years straight. Or possibly digesting this previous sentence 19 times over would be a relevant comparison. Anyways it would be a real pain to drop the system that was installed 4 years ago to input new technology to stay relevant with the times as the system would likely be elderly in comparison to its peers by the time it was implemented and live across a company consuming more than $1B annually. As we were. WHAT OPTIONS DO WE HAVE? Well, it’s hard to tell because from what I can see it is a multiple-choice question that must go something like this. Question 1. What can we do once we discover the system which we have in place is based on technology which is aging beyond reasonable functionality and our performance as well as that of our suppliers is being greatly impacted? Clients are super annoyed too. 2

Option A. Keep hiring and don’t look back. You have a broken-down car; you can’t get a new one. You can’t fix this one. Add more bodies to push this 92' Toyota Corolla faster in some general direction. Option B. All the above. A pre series funding round is right around the corner. The financial ask was anything that has two commas to add 18 people and really get this thing moving. So, this is what it would do. It ensures that businesses function smoothly while fostering customer-centric practices capable of providing maximum satisfaction. Artificial intelligence, neural networks, and machine learning have had a significant impact on logistics in the recent decade. With increasing demands for faster delivery, lower prices, and more environmentally friendly operations, the logistics sector is undergoing a paradigm transition. To stay 3

competitive in supply chain management, it is necessary to utilize cutting-edge technologies. The supply chain’s reliance on digital technology was accentuated by the uncertainty caused by a worldwide pandemic in 2020. COVID-19 accelerated the digitization of numerous business processes by 20–25 times. (McKinsey survey). More than 80% of organizations choose to ramp up their digital transformation initiatives. (Boston Consulting Group (BCG). These technologies assist in real-time monitoring and timely and accurate delivery turnaround times. Every day, huge volumes of data are generated. On Google alone, each minute sees 6 million searches. Mobile gadgets like smartwatches, mobiles, and iPad generate a lot of data every day. With enough information available, it needs sophisticated computational techniques to collect, classify, clean, and analyze it. Achieving success in supply chain management depends on three factors: innovation, logistics, and analysis. In recent decades, this process has evolved as a result of the introduction of new technology, resulting in a process that is more efficient, transparent, and collaborative. Supply chain management is utilizing several growing technical trends, techniques, and innovations, some of which include: 4

If you want to know the name of each rock, contact Spencer Steliga. Artificial intelligence and Automation — AI and machine learning automate operations. The optimization stimulates logistics forecasting, budgeting, execution, and administration by augmenting human productivity and competence. AI provides comprehensive supply chain insight for better oversight of key performance indicators (KPI) along with assisting in the automation of stock control, transportation operations, and enhancing customer experience. Automated manufacturing processes using digital technology can speed operations, safeguard data transmission, and improve supply chain efficiency. Integrating systems increases collaborative efforts to keep things moving quickly. Rapid chain breakdown response saves time and 5

money, improving output and results. More than 70% of firms polled by Oxford Economics are using artificial intelligence (AI) post the year 2020 (The Pandemic Year). AI can make smarter judgments and has previously been utilized to assist eliminate unproductive cargo journeys or to plan workers, for instance. AI-enabled organizations outperform others that have not kept up with technology improvements. The volume of data — With data science and analytics, businesses may acquire significant knowledge from data and amplify their supply chain management. Big Data aids businesses in Inventory management, supply and demand, weather patterns, real-time rollout, storage utilization, control and improvement, and cash flow forecasting. Data gathering and analysis in real- time enable rapid decision making, detecting and correcting issues before a major breach happens anywhere in the manufacturing chain, from inception to buyer’s hands. Data gathering is also safe, accurate, and storable via portable handheld devices and automated procedures, helping companies optimize operations. Improved communication through better connectivity’s/5Gs — Supply chain management cannot be successful unless there is adequate and consistent communication between all parties involved. These intricate networks rely on synchronicity and many reciprocal participants to function properly. Communication is essential for connecting each link in the chain and ensuring a smooth flow of inventory, with no hiccups that might detract from the overall quality of the finished product. When connectivity is limited, getting real-time data is tough. As a result of the integration of 5G into supply chain management, internet speed and network for manufacturing operations will be 6

significantly improved. In 2019, cellular phone carriers throughout the world started using this technology. Nearly 2 billion people across the globe are expected to switch to 5G in the next five years. When 5G links humans, organizations, materials, and gadgets, new user experiences emerge, and highly optimized results are delivered. One of the main benefits is that it fixes problems that might otherwise be made worse by the substantial delays in time. Cloud Computing — A company can keep track of merchandise along the whole supply chain, get real-time information, and update consumers on the progress of their orders because of Cloud Computing. Storage of data, interoperability, encryption, and knowledge transfer are all benefits of cloud- based solutions. Throughout the supply chain, Product Lifecycle Management (PLM) software — a cloud-based software, keeps track of data and procedures at every step of manufacture, maintenance, and sale. The objective of PLM is to deliver better-quality goods into customers’ hands more quickly. With PLM, manufacturers may address a wide range of difficulties that they experience throughout the lifespan of a product. PLM helps align and integrate important resources so that information can be distributed to the workforce in a timely and correct manner for analysis and solutions. Internet of things (IoT) — Industry experts predict a 24.9% annual growth rate for the Internet of Things industry by 2027. More and more products will be networked and integrated to provide insights into supply chain management, therefore. Wearables and handheld platforms enable a “touchless” value chain by alleviating the labor-intensive methodology to fulfill client transactions. Additionally, IoTs help warehouse and logistics management keep inventory records and streamline stock availability. Manufacturers in discrete, process 7

and transportation industries are expected to spend heavily on IoT installations to take advantage of enhanced manufacturing operations, production asset management, freight monitoring and fleet management. Blockchains — The use of blockchain technology assures the verification, recording, and encryption of all transactions. They speed up tedious, time- consuming manual operations and increase the level of accountability in the supply chain. In the manufacturing industry, blockchains are being used to handle supply chain management challenges, such as tracking the ownership of items, which were originally designed for bitcoin transactions. Transactions are recorded and distributed to other network members throughout the globe using this internet-based technology as an independent, digital ledger. These transactions are encrypted, assuring the highest level of security and instantaneous transmission. The term “blockchain” refers to the chain-like structure that each block or transmission forms. Sophisticated supply chain management technology — To survive and thrive as market leaders, logistics providers must keep up with technological advances in their supply chains. With the evolvement of technology, the enhanced use of Supply Chain software has helped companies to minimize mistakes, make alterations to orders, communicate across several media channels, and automate shipping. Industry Insights — A survey conducted on over 500 SCM professionals revealed that over 38% of the supply chain companies are scaling up their technology to ramp up their entire value chain. By the year 2024, about 50% of the organizations engaged in Supply Chain will be using Artificial intelligence 8

(AI) and advanced analytics. In sectors where the supply chain is critical, more than 50% of Executives believe success is one of their top three strategic growth ambitions, and a 1/3 imagine the supply chain will be a driving force behind that growth. (Gartner). Oracle’s research has found, Technology in the supply chain has yielded a three-fold return on investment, a 20% decrease in time to market, a 40% boost in productivity, a 35% reduction in wasteful labor, and an improvement in customer satisfaction that was 8 % higher with on-time delivery. According to the Boston Consulting Group (BCG), digitized supply chains may slash costs by up to 20%, raise EBITDA by up to 6%, and improve customer experience by up to 30%. Over half of warehouse operations will utilize robots and dynamic analytics to aid with storage optimization by 20 % of work order processing time in half by 2023, according to the International Data Corporation (IDC). FUTURE TECHNOLOGICAL ADVANCEMENTS IN THE SUPPLY CHAIN INDUSTRY Futuristic mode of Delivery — Drones/Driverless vehicles — Companies can solve a multitude of problems using driverless and drone delivery alternatives. Reducing the amount of human involvement, not only lowers expenses but also improves accessibility to rural places that are otherwise difficult to reach. Given the ever-increasing scarcity of qualified human operators, this technology may prove to be a game-changer shortly. Fleet Collaboration — Truck manufacturers and shippers may invest in production and cooperation software solutions in anticipation of a recession or to take synergy advantage. Trucking firms may improve their ability to monitor 9

the sector, streamline workflows, and save expenditure by using more complex technology. Inventory Distribution — Companies are having a hard time keeping up with new shipping expectations since current inventory software doesn’t seem to be able to provide the necessary analyses. The Distributed Inventory Flow Forecasting (DIFF) tool forecasts the flow of materials, making it possible for firms to optimize order fill rates and have a smaller inventory. Robotics in Supply Chain — Autonomous Mobile Robots (AMRs) may foster as a tool for optimizing the picking process, while warehouse management systems will continue to handle things like loading and unloading schedules. Artificial intelligence-enabled robotic process automation is expected to be used by more than 60 % of the world’s manufacturers by 2023, according to a variety of studies. Printing: 2D TO 3D Transition — 3D printing is getting a lot of attention these days, thanks to the growing demand from customers for customized items and the movement toward custom manufacturing and regional production. Decentralized manufacture and assembly of components in regional assembly hubs are becoming more feasible due to the increased use of novel materials, metal multiplicative production techniques, and lower-cost hardware by supply chain actors. In today’s world of self-fulfillment, the ability to decrease logistics and transportation costs, lower carbon footprint, avoid geopolitical concerns and avoid tariffs that come with global sourcing gives a firm a competitive advantage. 10

Digital Supply Chain Twin — A digital supply chain twin (DSCT) is a real- time digital simulation of the physical distribution network and thus, is a powerful tool. Using all the information gathered across the supply chain, it is calculated. DSCT decision-making is based on the DSCT from beginning to finish. When it comes to the supply chain, digital supply chain technologies (DSCTs) are an essential component. Through increased survival, it acts as a link between the two realms. Conclusion As they mature, digital supply chains will be profit centers rather than cost centers, and they are at the heart of the development of wholly new forms of trade. There are two steps to developing a company’s digital capabilities: first, real-time data into valuable insights, then from knowledge and insight to strategic planning and quick decision making, which allows for automated planning, inventory optimization, and other important activities to be carried out more efficiently. As supply chain professionals advance in their careers, they will learn how to handle and utilize these real-time data flows. To stay relevant and competitive in the face of a pandemic that wreaks havoc in 2020, companies had to rethink their operations and embrace innovation to avoid interrupting demand and profits and keep “doors open” in new ways. Digitization and automation must be implemented because of this. Artificial intelligence and robots are being used in advanced manufacturing, not to replace humans, but rather to improve methods, allowing for greater precision and efficiency using artificial intelligence and robots, which are working alongside humans to improve business and increase the bottom line. Large 11

corporations have a harder time implementing supply chain management systems. Although there are risks involved, the benefits are apparent, with mobile devices and digital transformation opening the door to new industrial eras that are more competitive than ever before. Organizations must adopt the most current methods. Machine learning and automation are revolutionizing the industrial industry and the world of commerce, respectively. Faster turnaround times with the same high-quality outcomes are expected by consumer groups, who want more accuracy, quality, and speed. By using modern supply chain management techniques, a company’s competitive advantage is enhanced by continuous visibility of all production processes from warehouse to processing operations to delivery ensuring optimal efficiency and eliminating needless steps resulting in higher customer satisfaction. Thank you for all you do. Sincerely, Spencer Steliga Founder & CEO redturn, a sustainable movement with some harmony. 12