61% of supply chain professionals believe that the right technology provides a competitive edge. Amid these complex supply chain challenges, technology emerges as a powerful enabler for manufacturing teams, especially for sourcing and procurement. Automation, in particular, is transforming traditional procurement processes by replacing repetitive tasks with higher-value work through actionable insights that lead to faster and better decision-making.
Automation in decision-Making
Despite the potential of technology, only 16% of supply chain functions currently leverage decision-making automation. This percentage is expected to multiply by 4x in the next three years as increased complexity and a faster paced environment will force organizations to leave behind legacy processes and focus on enhancing cross-site visibility and collaboration to eliminate or reduce inefficiencies. It is that next step that enables supply chain teams to separate execution from orchestration in order to fully integrate activities, decisions, and technology towards a common goal focused on providing the highest positive impact to the organization.
"We (now) have faster methods of calculating safety stocks, it's automated and it happens every single night. I don't need to run a giant Excel report and pull several reports to make those calculations. We can put controls into place and work on the most impactful (actions), the highest dollar impact first and work our way down the list."
Eric Blanton, Global Purchasing Manager at MSA Safety
Unlocking the potential of your workforce
As the number of unfilled supply chain positions continues to increase, the manufacturing industry is now looking at new alternatives that can help increase employee retention by further developing their talent and minimizing time spent in low value tasks. Companies investing in employee development and the right technology infrastructure are seeing their employees are 3.8 times more likely to have a high performance, 3.2 times more likely to stay, and 3.1 times more likely to not experience burnout. In addition, these companies are reporting significant improvements in supply chain efficiency such as:
- 73% greater cost savings
- 67% faster execution
- 47% better supplier relationships
- 67% enhanced risk mitigation
Not to say that change doesn't come with an adjustment period, technology is now offering supply chain teams an opportunity to further grow their careers by developing data analytics skillsets. These skills are not only helping to work with technology but are also further developing the workforce's decision making ability with a direct impact on increasing efficiency; it's a win-win situation.
"Based on where people want to grow, their personal development, and professional development, we slotted people in different projects and collected feedback before we assigned everything. We did all of that over time to create a really cohesive plan. People have projects they want to achieve because it's helping their growth and they know that."
Eric Blanton, Global Purchasing Manager at MSA Safety
Learn more about how global purchasing manager, Eric Blanton utilizes LeanDNA to improve supply chain orchestration and gain efficiencies for MSA Safety
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In conclusion, as the manufacturing industry continues to evolve, those who prioritize efficiency, collaboration, and talent development are poised to lead the way toward a more resilient, efficient, and successful future.
More Resources
Optimizing supply chain efficiency: Navigating challenges >>
How MSA Safety Leverages LeanDNA’s Inventory Optimization Command Center for a Competitive Edge >>
Why you need LeanDNA’s inventory command center >>
Maximizing the value of supply chain talent and performance >>
