Viewpoint: Experiment, learn as you go

Every year at this time I ask a few of the market’s most trusted supply chain technology analysts what trends they’re following—and, more importantly, what should be top of mind for logistics professionals looking to put software and technology to work inside their operations.

I ask each of them questions in their areas of expertise to create our annual Technology Roundtable—one of our most anticipated features and one of our best webcasts of the year. It’s a simple process, but the result is the most comprehensive snapshot of the trends and issues shaping the future of logistics and supply chain management.

Because they live in the technology space on a daily basis, the roundtable allows us to validate buzz terms and put context around concepts that you hear bandied about at conferences or read in trade media. In fact, as I fielded responses from this year’s panel, the terms “Internet of Things (IoT),” “visibility,” “interoperability,” “collaboration,” “connectivity,” and “maturity” all came to the forefront.

The common theme advocated by all four panelists is this push toward what I’ll call “hyper-interoperability,” where technology, people, and process all collaborate to create true supply chain visibility, accurate orders, and happy customers. To get there, they say, logistics professionals need to shed any remaining trepidation.

What’s driving this? Look no further than the ongoing race to meet fickle customer demands in our brave new omni-channel fulfillment world. I don’t need to remind retailers that today is often considered too late in the mind of an e-commerce customer, while manufactures are finding their linear supply chains transform into a supply web of global sources that’s as complicated to manage as any e-commerce fulfillment operation.

According to panelist Steve Banker, who heads up the supply chain and logistics consulting team at ARC Advisory Group, the evolution of an IoT is going to greatly improve tracking and decision making for both retailers and manufacturers on the way to omni-channel success. The key, he says, is to not let the futuristic context of IoT—or any of the buzz terms—intimidate you.

“The acronym is new, but the concept isn’t—particularly in logistics,” says Banker. “For example, an RF gun, voice recognition, and RFID in the warehouse all provide IoT-style sensor data. The good news is that prices on sensors, networking, and other key parts of this technology stack are falling quickly…and we’re making progress.”

As Banker points out, applications that didn’t make sense five years ago are having a strong payback today due to users brushing off fear. Panelists Norm Saenz of St. Onge, Britt Dayton of Deloitte, and Gartner’s Dwight Klappich build on this call for courage when applying the technology necessary inside the four walls and throughout transportation networks.

“We see organizations allow more experimentation, embody empowerment, and are unlikely to punish employees who take informed risks,” says Klappich. “Keep in mind that there’s little notion of a best practice at this point in omni-channel because companies don’t have the luxury to wait for the concept to mature. The truth is that most organizations are flying by the seat of their pants, simply learning as they go.”