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amount of time supply chain managers
spend “crunching data and staring at
spreadsheets.”
For example, companies could use AI
to assess the accuracy of the forecasting
models they’ve used in the past and make
suggestions about which models they
should use for specific situations—say,
peak versus nonpeak seasons. Similarly,
predictive analytics could be used to cre-
ate much more focused, specific inven-
tory allocation suggestions that could be
customized to an individual store.
Not all disruptive technologies are
garnering the same amount of interest
from retailers, however. According to
Gibson, the sense among most of the
supply chain executives he’s interviewed
is that technologies like blockchain and
the Internet of Things (Io T) are still way
out on the horizon. “For the most part,
they are finding that blockchain is still at
the theoretical discussion stage,” he says.
With the exception of blockchain and
IoT, however, retailers’ interest in disruptive technology is more than just
talk, according to Gibson. He says retail
supply chain leaders are finding it easier
to obtain approval for investments in
automated equipment and technology
than they did in the past. While companies once evaluated spending requests
strictly on the basis of cost, payback
period, and return on investment (ROI),
they appear to be backing off from those
rigid guidelines. Today, they’re more
willing to look past those metrics in
cases where the proposed technologies
have high potential to improve service
quality, boost inventory accuracy, or
help the company better meet deadlines
and delivery dates, Gibson says.
This willingness to invest in their
supply chains is decidedly good news.
Without that new technology (and a
commitment to retaining and developing their talent), retailers will be hard-pressed to keep up with the rapidly
evolving omnichannel commerce world
and compete with the likes of Amazon.
And in spite of this past holiday season’s
success, those that fail to keep up could
next year find themselves in the same
plight as Toys “R” Us, Sears, and other
retailers that didn’t adapt to the times.
tization will improve supply chain
visibility and transparency, which
will in turn lead to better inventory
allocation and customer service.
Artificial intelligence and predic-
tive analytics: As retailers work to
create a common pool of supply
chain data, they’re also hoping that
advances in AI and predictive ana-
lytics can help them use that infor-
mation more effectively. What these
companies ultimately want, accord-
ing to Gibson, is the ability to lever-
age analytics programs and AI to
provide managers with “actionable
information,” thereby reducing the
