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Supply Chain Innovation Continues, But Slowly

Global electronics OEMs are faced with a daunting number of technology offerings, including block chain, artificial intelligence, artificial reality, robotics, and more. Choosing the right offerings to transform their logistics offerings can be daunting but slow and steady experimentation is moving organizations into this brave new world.

“Nobody sees the direct promise of these new technologies and so tend to be cautious about adopting them,” Kristi Montgomery, vice president of innovation at Kenco told EBN. “We have to get out of the mindset as corporations of the traditional IT way of looking at things, that it will be a multiyear project that costs six figures and is complicated. People are looking for project that are more iterative. It is not going to be a big bang approach and throwing money. Instead, they try new things and improve along the way.”

In its second annual 2018 State of Supply Chain Innovation Survey, Kenco looked at the state of supply chain technology innovation and found that innovation is happening, but that it is iterative rather than explosive. Change is related to the increasing realization that when technology improves processes, it also boosts profits. Visibility is a key objective for most organizations when embracing new technologies.  

High-tech organizations have been among the first to jump on the bandwagon. “The electronics industry is often ahead of the curve, especially with reacting to e-commerce trends,” said Montgomery.  “In that space, customers demand immediate delivery and the products are often high value items.”

In addition to reducing risk, this iterative approach allows technology to be tested and the results measured. Organizations can then extend and deepen the use of solutions in other parts of the organization or in other applications.

Going forward, new technologies and use cases will continue to emerge. “We are seeing the piloting and success of wearable technologies like AR glasses, and increased excitement around larger-scale concepts. While two years ago, blockchain was not even part of the industry vocabulary, now its wide- scale implementation is imminent,” the report said.

Take a look at the infographic below to see the highlights of the survey.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

1 comment on “Supply Chain Innovation Continues, But Slowly

  1. MelBrandle
    October 29, 2018

    I don't think that I have ever seen anybody jump into a new technology head first unless they have some stake in it themselves. I reckon that people would be more convinced to have something implemented into their operations or business systems if they can see first hand how it is working for someone else. That's going to be hard for the developers to demonstrate but it's not impossible! You just have to get the right angle of presentation to get people on board too!

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