In our recent report on managing labour shortages in the supply chain, we explored how businesses can respond to workforce pressures through a combination of recruitment, retention, workforce development and technology adoption. As labour shortages persist, automation, AI and digital tools are increasingly becoming a key part of the solution, helping organisations improve productivity, reduce reliance on manual processes and support employees in higher-value activities. 

However, as more businesses invest in these technologies, a new question is emerging. If competitors can access similar tools, what will set organisations apart? 

Access to technology is becoming less of a differentiator 

Technology remains a critical enabler of supply chain transformation. Businesses continue to invest in automation, AI and digital solutions to improve efficiency, strengthen resilience and reduce costs. However, technologies that were once considered differentiating are becoming more widely available. Across planning, warehousing, transport and supply chain visibility, solutions that were once associated with only the most advanced operators are now being adopted by more businesses. 

As technology becomes more accessible, the challenge shifts from acquiring tools to extracting value from them. In the coming years, competitive advantage will increasingly depend on an organisation's ability to integrate new technologies into decision-making, embed them into day-to-day operations and develop the capabilities required to realise their full potential. 

Technology is changing what supply chains need to succeed… 

As operations become more automated, more data-driven and more digitally connected, demand is growing for a different mix of skills and capabilities. Data analysis, AI literacy, automation engineering and systems integration are becoming increasingly valuable. This shift creates an important distinction between labour shortages and capability gaps. A business may successfully recruit into roles while still struggling to build the expertise required to maximise the value of new technologies. 

…While a successful implementation requires even more consideration 

The successful implementation of an AI planning solution, for example, requires more than software deployment. Supply planners may spend less time manually adjusting forecasts and more time interpreting AI-generated recommendations, assessing the implications of alternative scenarios and understanding when to override automated decisions. 

Additionally, successfully deploying new technology is not just a skills challenge. While technical expertise is important, extracting value from technology will often require organisations to redesign processes, establish new decision-making frameworks, adapt leadership behaviours and build confidence in technology-enabled ways of working. 

Businesses that invest in capability alongside technology are likely to be better positioned to realise value from those investments. Those that focus primarily on implementation may find that expected benefits take longer to materialise or fail to reach their full potential. Over time, this could create a widening capability gap across the industry. 

The questions leaders need to be asking 

As supply chains evolve, workforce capability needs to be embedded into strategic discussions and long-term planning. Supply chain leaders should consider: 

• Are we treating capability development as strategically as technology investment? 

• Do we currently have the capabilities needed to maximise the value of our technology investments? 

• How prepared is our workforce for the technologies we plan to adopt over the next five years? 

• Are we developing those capabilities internally as well as recruiting for them externally? 

These questions are becoming increasingly important as organisations seek to maximise returns on technology investments while preparing for a more digital future. 

Looking beyond technology 

Technology will remain a critical component of supply chain transformation. However, as access to these tools becomes more widespread, businesses may need to pay closer attention to the capabilities required to use them effectively.  

The organisations that lead tomorrow will not simply be those that invest in the most advanced technologies, but those that are best able to develop the skills, expertise and ways of working needed to turn them into meaningful value. 

 

Looking for more insight on this topic? 

Subscribers can access the following insight: 

• Supply Chain of the Future looks to identify supply chain issues and uses data-driven insights to identify opportunities to stay competitive. 

• Labour optimisation and AI: In conversation with Brian Weiner, Rebus covers our conversation with Rebus.io’s head of sales, marketing, and partnerships and how AI is supporting warehouse productivity gains. 

• Artificial Intelligence and cybersecurity provides an end-to-end view of how AI is transforming supply chains and what business need to know to remain secure.