Gen Z to Boost Supply Chain Autonomy Through Hyperautomation

Future supply chains need to apply advanced strategies to stay competitive in today’s dynamic technological environment. Let’s dive into a recent Gartner study to understand the impact of hyperautomation on traditional supply chains. 

According to a studyOpens a new window by Gartner, Inc., supply chains are gaining autonomous stature as Generation Z (Gen Z) members have started to enter the workforce. Gen Z’s involvement has brought significant transformation in traditional supply chains as its evolution continues to peak.

“Born between 1997 and 2012, the oldest Gen Zers have just started their careers. In 10 years, they’ll be supply chain managers,” said Pierfrancesco Manenti, vice president analyst with the Gartner Supply Chain practice. “This generation has grown up with digital technologies, so today’s supply chain leaders expect them to be innovators that accelerate supply chain digitalization and pave the way towards hyperautomation.”

Organizations use business-driven hyperautomation to quickly identify and automate businesses that traditionally called for human intervention or judgment. Hyperautomation combines the merits of various technologies, including robotic process automation (RPA), machine learning (ML), artificial intelligence (AI), and many others.

According to a recent Mckinsey supply chain 4.0 surveyOpens a new window , there are more than 50 logistics technologies under development that could automate some part of the future supply chains.

.aligmentchange p {display: inline-block !important; width: 100% !important;}

Logistics Technologies Under Development
Source: Mckinsey Supply Chain 4.0 Innovation SurveyOpens a new window

Gartner believes that supply chain leaders should hire more Gen Z individuals to yield results through supply chain digitalization. They need to design a future supply chain strategy by adopting automation, augmentation, and driving innovation. Let’s look at each one in detail.

Automation of Repetitive Human Tasks

Supply chains need to first identify areas that involve redundant human activity and add no additional value to their operations. These include tasks and processes such as procure-to-pay and customer claim management. Supply chains can automate such workflows by employing RPA rigorously.

Besides, supply chains can employ automated guided vehicles (AGVs) in warehouses for cargo transport. As AGVs move faster than humans, they can potentially move more goods at once. It can even identify the most optimal route to pick up the necessary products.

“Over the next five years, supply chain leaders will roll out more coordinated and impactful RPA initiatives, as the technology is maturing very rapidly, and we’ll see mainstream adoption,” Mr. Manenti said.

Also read: Transforming Supply Chain With Smarter Logistics

Augmented Intelligence Is Set to Rise

Gartner predicts that various hyperautomation technologies will mature around 2025 to 2030 and play a pivotal role in modern supply chains. These technologies involve a creative mix of data, analytics, and artificial intelligence (AI). Owing to these features, they will automate supply chain decision-making by augmenting human judgment.

Hyperautomation techniques will boost accuracy and optimize the speed of the decision-making process. Consider, for example, a scanning technology. It could scan huge amounts of real-time data and provide deep insights into the status of the supply chain. This would allow decision-makers to make quick decisions on the fly. This is potentially impossible for humans alone.

Hence, this is the appropriate time for Gen Z employees to take up more leadership roles. It will fasten the process of hyperautomation adoption as Gen Z members show clear acceptance for such technologies.

Also read: Does the Future of Trucking Lie in Combining AI With Cloud?

Focus on Supply Chain Strategy and Innovation

The modern supply chains are expected to automate low-value human activities. As a result, future supply chains will have minimal direct human involvement and interference from a work perspective. Such an approach will also suit the expectations of Gen Z employees. With automation in place, employees will focus on critical tasks, such as scrutinizing the supply chain strategy, driving innovation, managing customers, and AI operations.

All supply chain leaders interviewed by Gartner agreed that at some point beyond 2030, most supply chain activities will become autonomous and self-healing. Yet, many were skeptical about supply chains taking-off with ‘no people’ at all.

“They agree that hyperautomation is an opportunity to free up people’s time for the value-added work that only humans can perform. The ingenuity and empathy of the human brain can’t easily be replicated,” Mr. Manenti concluded.

Also read: COVID-19 Vaccines: Moderna and IBM Join Hands to Strengthen the Supply Chain

In conclusion

Supply chain firms manage complex workflows and processes. This has called for a new supply chain framework where the workforce needs to be capable enough to handle this complex work format. However, for organizations to sense disruptions and respond quickly, employees need the skills and technologies to react with agility.

Considering these supply chain requirements, the tech-savvy Gen Z seems to be apt for the present times. Besides, more Gen Z population venturing into supply chains comes as good news for the future supply chains. This will not only change the mindset of employees but also shake the very foundations of traditional supply chains. It remains to be seen where the future supply chains will end up with more Gen-Zers joining the workforce. 

Do you think hyperautomation technologies will completely automate the future supply chains? Comment below or let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to hear from you!