(Photo: Arjun Sharma, Tech Supply Chain Expert)
Supply chain management is a critical function for many businesses, as it involves planning, coordinating, and executing the flow of goods and services from suppliers to customers. However, traditional supply chain processes are often inefficient, costly, and prone to errors and delays due to factors such as manual interventions, siloed data, and lack of visibility and collaboration. To overcome these challenges and meet the increasing demands of customers, businesses need to embrace digital transformation, which is the use of data-driven technologies to improve the performance and value of supply chain operations.
In an effort to find out more about supply chain digitization and how it enhances supply chain efficiency, Tech Times reached out to a well-known tech supply chain expert, Arjun Sharma.
Arjun, an accomplished Supply Planning Manager with Google's cloud division, has a proven track record of driving operational efficiency through capacity deployment metrics and inventory management. His collaborative approach has led to the creation of an effective inventory management system, benefiting a diverse range of clients. Prior to Google, Arjun played a key role at Apple, where he successfully launched 3 iPhone models, managed substantial budgets, and achieved significant cost savings through strategic planning and negotiation skills.
Arjun's impressive leadership capabilities were honed during his time as an officer in the military, where he excelled in coordinating complex logistics operations and was recognized for his exceptional management skills in challenging environments. In a telephonic interview, Sharma mentioned how digital transformation can enable supply chains to become more efficient, agile, and customer-focused, by leveraging the following capabilities:
Digital technologies: These are the tools and platforms that enable the collection, analysis, and exchange of data across the supply chain network. Some examples of digital technologies are the Internet of Things (IoT), which connects physical objects and devices to the Internet; artificial intelligence (AI), which enables machines to perform tasks that require human intelligence; and blockchain, which is a distributed ledger that records and verifies transactions in a secure and transparent way. These technologies can help streamline operations, reduce costs, and enhance overall efficiency within the supply chain.
Data analytics: These are the methods and techniques that enable the extraction, processing, and interpretation of data to generate insights and support decision-making. Data analytics can help optimize supply chain management by providing actionable information, forecasting demand, improving inventory management, and making data-driven decisions to enhance efficiency and responsiveness. For example, data analytics can help businesses understand customer preferences, predict market trends, optimize pricing and promotions, and adjust production and distribution plans accordingly.
Arjun's role in managing a large-scale inventory in the Indian Army was marked by his exceptional use of data analysis. He skillfully managed the complex demands of a vast inventory essential for over 200,000 soldiers, utilizing advanced real-time data analysis to accurately forecast their needs. This approach resulted in an impressive 99.2% availability rate for the inventory, reflecting the efficacy of his data-driven decision-making.
By prioritizing purchases within a substantial $200 million budget, Arjun demonstrated the vital role of data analysis in optimizing resource allocation. His ability to maintain operational efficiency and readiness in this challenging environment underlines the importance and impact of data analysis in enhancing the efficiency of large-scale supply chain operations such as military logistics.
Automation: This is the use of machines and software to perform tasks that are repetitive, routine, or complex without human intervention. Automation can help improve supply chain operations by increasing productivity, accuracy, and speed while reducing human errors, labor costs, and safety risks.
Some examples of technologies that drive automation in supply chain operations are robotics, which are machines that can perform physical tasks; autonomous vehicles, which are vehicles that can operate without human drivers; and machine learning, which is a branch of AI that enables machines to learn from data and improve their performance over time. These technologies can help automate various aspects of the supply chain, such as picking, packing, loading, transporting, and delivering goods and services.
Discussing his tenure at Google, Arjun Sharma reflected on his initial project, which involved collaborating with cross-functional (XFN) teams to develop features that significantly reduced manual labor used to identify Google shopping listings that did not meet the strict Google standards of safety.
This initial success paved the way for his subsequent appointment to spearhead the creation of an advanced inventory allocation and replenishment recommendation system. This innovative system empowers merchants to maximize the efficiency of their fulfillment assets, marking a significant milestone in their career at Google.
"There is a deep, unspoken joy in revolutionizing established methods, ingeniously boosting efficiency while artfully reducing labor costs and other expenditures, creating a harmonious blend of progress and cost-effectiveness", says Sharma, who is working on further optimizing Google Cloud Supply Planning systems and delivering a more competent model.
However, according to Sharma, implementing digitalization in supply chains is not without challenges. Some of the obstacles and potential drawbacks that businesses might face include:
Cybersecurity risks: As supply chains become more connected and data-driven, they also become more vulnerable to cyberattacks, which can compromise the confidentiality, integrity, and availability of data and systems. Cyberattacks can cause disruptions, damages, and losses to supply chain operations and customers, as well as reputational and legal consequences. Therefore, businesses need to implement robust security measures and protocols to protect their data and systems from unauthorized access, manipulation, or destruction. Google Cloud safeguards its supply chain customers from cybersecurity threats through tailored measures.
Key strategies include encrypting supply chain data both in transit and at rest, adhering to supply chain-specific compliance standards like ISO 28000, and providing real-time monitoring tools for immediate threat detection. Access control is rigorously managed to prevent unauthorized access to sensitive supply chain information. Additionally, Google Cloud employs advanced AI and machine learning to identify supply chain-specific threats proactively.
In the event of a breach, specialized incident response protocols are in place to quickly address and mitigate any impact on supply chain operations, ensuring minimal disruption and enhanced security.
Integration complexities: As supply chains involve multiple stakeholders, systems, and processes, integrating them with digital technologies can be challenging and costly. Businesses need to ensure that their digital technologies are compatible and interoperable with their existing systems and processes, as well as with those of their suppliers and customers. They also need to manage the change and transition from legacy to digital systems and processes and ensure that they are aligned and coordinated across the supply chain network.
Workforce upskilling: As digital technologies and automation replace or augment human tasks and roles, businesses need to ensure that their workforce has the necessary skills and competencies to adapt and thrive in the digital environment. This requires investing in training and education programs, as well as creating a culture of learning and innovation, to equip employees with the technical, analytical, and soft skills that are essential for the digital supply chain.
Businesses also need to address the potential social and ethical implications of digitalization, such as job displacement, inequality, and privacy concerns, and ensure that their digital transformation is inclusive and responsible. During his logistics tenure in the Indian Army, Arjun undertook a thorough analysis of past client orders, identifying key trends in critical errors. Leveraging this data, he crafted and led several targeted training modules for 300 client representatives.
His objective was to equip them with the necessary skills and insights to minimize order-placement errors. As a result of Arjun's well-structured training programs, there was a notable 50% reduction in these errors. His initiative not only resolved immediate challenges but also significantly enhanced the representatives' proficiency, ensuring sustained improvements in the accuracy and efficiency of their order processing.
Resistance to change: As digital transformation involves significant changes in the way supply chains operate and deliver value, it can encounter resistance from various stakeholders, such as employees, suppliers, customers, and regulators. Resistance to change can stem from factors such as fear of the unknown, loss of control, perceived threats, or lack of trust. Therefore, businesses need to communicate and engage with their stakeholders and involve them in designing and implementing their digital transformation to gain their buy-in and support and address their concerns and expectations.
Despite these challenges, digital transformation can offer significant benefits to supply chains. Digital transformation is a key enabler for enhancing supply chain efficiency, agility, and customer focus by leveraging the capabilities of digital technologies, data analytics, and automation. However, digital transformation also poses some challenges and requires changes in how supply chains operate and deliver value. Therefore, businesses need to adopt a holistic and strategic approach to digital transformation and address the technical, operational, and human aspects of their supply chain processes. By doing so, they can reap the benefits of digital transformation and gain a competitive edge in the market.
