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January 2 2023

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Januar y 2, 2023 | Journal of Commerce 109 EXECUTIVE COMMENTARY 2023 ANNUAL REVIEW & OUTLOOK Logistics logistics industry is automation working in tandem with STP and ensuring the systems have the knowledge. There are areas, however, that cannot be automated, including anything that requires human touch. The human component of working with suppliers cannot be replaced, as relationship building, responsiveness, and being likable with stakeholders throughout the processes play a key role in business success. The future for supply chain visibility is similar to Ethernet availability. In 1995, Ethernet was not standard on PCs, and those who wanted to be tapped in to access the internet had to purchase an adapter, made by several compa - nies at the time, for the capability. had faded. However, the companies that provided true optimization and solutions fared well. This proves that some companies and technologies make it out of the hype cycle, and some don't. Organizations should be embracing automation, and many already have. However, there are many supply chain leaders who still look to antiquated industrial pro - cesses when evaluating their own productivity, hindering their profit margins without even realizing it. The core principle for logistics is harnessing straight-through processing (STP), where there is no human intervention needed for 99.5 percent of operations. Automation exists with delivery vehicles, dark warehouses, and even in some port terminals, but the future of the Highway" will more closely resem- ble a switchboard rather than a rest stop. If data comes to rest in a centralized data store, even for a moment, latency and decay places all dependent parties at risk. Operational necessities force data integrity within the execu - tional systems of record. Access to instantaneous actionable informa- tion, as opposed to "rested" data, gives intermodal stakeholders the ability to leverage applications, tools, and automated processes, fed in real time, to become more of a direct controlling party to the freight orchestration. Commercial value will be created as operational layers are removed and executional decision-making shifts to the appro - priate parties. Blume Global Pervinder Johar CEO Machine learning (ML) and artificial intelligence (AI) are driving inno- vation and remain largely untapped. Our world is heavily paper-based, and a lot of the industry knowledge and processes still live in people's heads. With ML/AI, there are so many applications of it show - ing progress in systemizing this information and bringing organiza- tions to the next level. Conversely, many technologies experience a hype cycle, and visibil- ity is one that has plateaued. Having worked through three or four major recessions in my career, visibility pops up repeatedly. Whenever the economy is in a growth period, and when demand is greater than supply, organizations make it a point to focus on visibility. However, visibil - ity phases out in a recession, which is an area we are entering now with demand experiencing issues, not supply. A good example would be the dot-com boom in 2000, when a lot of visibility companies popped up; by 2002, a lot of those companies Association for Supply Chain Management Abe Eshkenazi CEO No supply chain organization made it out of the pandemic unscathed or unchanged. As the chaos turned to complete pandemonium, it became apparent that visibility must rise to the top of company priority lists as a mission-critical capability. But this leaves a few key questions to be answered, the most pressing of which is "How?" With a keen eye fixated on emerging trends, it's clear that many organizations are starting to prioritize and pursue supply chain visibility through a number of different (yet often connected) avenues. A good example is the introduction of smart logistics and making use of internet of things (IOT) devices to improve insight and agility across each supply chain process. Not only does accessing near-real-time trans - parency offer valuable information, but collecting data related to shipment location, speed, atmospheric conditions, and more enables supply chain teams to improve planning activities and manage disruption across their networks. The adoption of digital supply chain technol- ogy further perpetuates these visibility initiatives through advanced automation. Large-scale IOT sensor deployment and implementation leads to better insight, and automation can enable supply chain organizations to pivot more easily during uncertain or unpre - dictable periods. This also spills into risk, resilience, and security, offering a more complete view of supply chain processes and enabling companies to develop a layer of immunity in the face of adversity. It's critical to note that as compa - nies invest in technology, they should match that investment in talent. Competent and capable human capital can provide insight into data inputs and outputs leading to more informed decisions, which should enable greater transparency and visibility. To give supply chain visibility a nudge in the right direction, ASCM has sponsored the Economist Intel - ligence Unit to develop the Resilient Supply Chain Benchmark. This tool assesses performance and analyzes operational and strategic supply chain resilience to identify the most promising solutions. ASCM members also have access to the Supply Chain Visibility microlearning, enabling them to achieve a high-visibility supply chain, adjust quickly to unantic - ipated change, and enjoy a clear view of internal data, data from supply chain tiers, and data from end cus- tomers — establishing essential transparency among all stakeholders. "It's clear that many organizations are starting to prioritize and pursue supply chain visibility through a number of different (yet oen connected) avenues." ◀ "The future of the logistics industry is automation working in tandem with straight-through processing." Pervinder Johar

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