Powering Performance | AIAG

Invest in Human Capability Development for Supply Chains

Written by Parisa Salkhordeh, EY Americas Supply Chain Principal | Aug 7, 2024 7:19:22 PM

Supply chain leaders are confronting an unparalleled triple threat: generative artificial intelligence (GenAI) is altering job roles; consumer expectations are shifting; and global disruptions are challenging the fabric of supply chain operations. Adding to the pace of change, by 2035, 45% of supply chains are expected to be mostly autonomous (e.g., robots in warehouses and stores, driverless forklifts and trucks, delivery drones and fully automated planning).1 While supply chains must transform to meet these challenges, it is crucial that the supply chain workforce also keeps pace as technological progress and innovation accelerate exponentially.

The integration of AI in the supply chain is not a distant prediction but an ongoing reality. For example, in a 2024 EY survey, 72% of respondents say their employees are using AI at least daily in the workplace.2 As more companies begin to integrate AI use cases into their supply chain, job requirements are rapidly shifting. Traditional roles are being redefined, necessitating a shift in skill sets, where adaptability and technological fluency become critical. In fact, while “AI and big data” rank only 15th as a core skill for mass employment today, it is listed as a top-three priority in company training strategies for the next three years.3

As these strategies are rolled out, one challenge stands out: the growing skills gap. Supply chain organizations are challenged to find talent within and outside their organization that is equipped for the demands of modern supply chain operations. Closing this gap is not optional but essential. Without a human-centered approach to supply chain transformation, the talent gap will be further increased and organizations will fail to realize the benefits of supply chain investments.

Read full article here.