- Though the strike was short and has been resolved, the lessons learned highlight the importance of bolstering supply chain transparency and security.
The U.S. port workers strike started on Oct. 1 and was resolved, at least temporarily, on Oct. 4.
Though the strike is temporarily paused, its cascading effects have the potential to disrupt supply chains moving forward. The resiliency of many supply chains will be tested, and the companies who have leveraged cutting-edge technologies to manage their supply chains will perform better than their less technological advanced competitors.
It has been reported that the U.S. automotive supply chain would have been one of the most impacted by the strike. It’s estimated that $37.8 billion in vehicle imports have been processed at these ports in the past year alone, meaning the strike posed a substantial risk to the timely delivery of vehicles and crucial auto parts. Many automotive production plants rely on just-in-time (JIT) manufacturing practices, which involves minimizing inventory in favor of close synchronization between parts deliveries and the production line schedule.
It’s crucial to do work today to make your supply chains as disruption-proof as possible so your company can withstand any unforeseen external pressures in the future that can reduce major disruptions.
Deploying the Latest Tools for a Resilient Supply Chain
Real-time business intelligence collection and analysis are crucial. Whether it’s identifying overreliance on single suppliers, regions, or transportation modes or a lack of transparency in where goods are at any point, deploying advanced technological solutions can help.
Though the strike is on hold, it is not the only external factor that can affect supply chains. Hurricanes, pandemics and other disruptions promise to continue for the foreseeable future. Finding an all-encompassing technological solution that allows you to pivot quickly, even in the face of unpredictable outside factors, will be more important than ever.
Fortunately, supply chain technology companies are building new tools every day that make the job easier than ever before. Whether it’s radio frequency identification (RFID) tags, ultra-wideband, cellular tracking or GPS data, technological advances can help secure today’s ever-lengthening supply chains.
RFID remains the standard, and when it’s combined with IoT technology, it can be even more powerful. Adding artificial intelligence (AI) to the mix just enhances what can be done to secure supply chains around the world.
AI’s Impact
AI is one of the most talked about technological advances of the last decade. It may not appear to have an immediate application in supply chain management, but that simply isn’t true. A thoughtful and strategic deployment of AI can empower your team to move quickly and adapt to changing conditions, keeping you one step ahead of the competition.
Under the guidance of a skilled IoT software partner, you can leverage AI to track assets more effectively, reduce friction between different departments, and drive real-time insights to improve the bottom line in record time.
For example, AI can condense massive amounts of data from various work streams into one actionable report. Once your team has the data at its fingertips, they can use AI to forecast trends, offer proactive answers to common questions, and simplify decision-making. The results can be startlingly effective at demystifying and optimizing business processes throughout the supply chain.
The Benefits of AI
Management, working in tandem with the front-line employees, can make fast decisions based on real-time data to engage new suppliers or move assets from one place to another to keep your business from falling prey to outside upheavals. AI can alert your team to common warehouse logistics challenges from shipping lane assignments to stop-ships. It allows your team to adjust in real time and keep the supply chain intact even during unsettled times.
Additionally, your team will be better equipped to decide how to deploy production assets depending on what goods are currently in your warehouse or what is on its way to your facility. The right technology solution should be able to condense large data streams into easily understood visual reports that allow them to prevent problems before they affect your business operations.
The key to using the data, however, is its accuracy. Without the ability to verify the accuracy of your data, your managers won’t be able to make the real-time decisions necessary to keep your business moving smoothly. Some supply chain management software builds its AI modules on a foundation of 99.9 percent accuracy. That level of accuracy is necessary for good management decisions to be made and keep your supply chain safe from external disruptions and unpredictability.
The Future of Supply Chain Management
We believe that the more sophisticated AI becomes, the more it will revolutionize the way supply chains are managed, rendering them much less susceptible to unforeseen external pressures like the port workers strike, and allowing your organization to stay ahead of developments and pivot if needed.
Finding a partner who can provide you with the knowledge and experience to deploy AI and IoT technology properly is crucial for the success and efficiency of your business.
