Prepare for the Next Disruption Now
CGT: How has AI helped advance the CG supply chain and where is it headed next?
Muthusrinivasan: Artificial intelligence along with deep-learning are becoming the de facto normal in supply chain excellence. Humans alone cannot process the vast amount of data available to drive quick decisions. Today AI can augment a supply chain planner’s workflow to deliver immediate insights, identify new opportunities and outline the best path forward during times of disruption. A living digital supply chain delivers a platform for CG companies to deliver more personalized services while still maintaining the resiliency required to adapt to changing markets. As AI continues to evolve, the ability to provide precise context to data and deliver recommendations to supply chain teams or automate processes will bring about a fundamental shift in how consumer goods companies go to market.
CGT: What are some key steps consumer goods companies must take to achieve functional-AI prowess?
Muthusrinivasan: The use of AI to augment supply chain talent expertise and automate the routine are foundational capabilities where CG companies should focus their efforts. To be successful, look to four key areas:
- Customers. Today’s emphasis is placed on point-of-sale (POS). Shift this thinking to focus on the point of consumption experience. The point of consumption influences a consumer’s satisfaction with the brand and willingness to come back.
- Technology. Data is a key constraint for the vast majority of consumer goods companies. It is vital to have the right platform that can harness data, accelerate innovation and collapse cycle time.
- Organization. It is important to empower the organization, continue to elevate the role of supply chain to the board room, and invest in people to drive success.
- Shared Metrics. Metrics are often confined to one group or department. Metrics should be shared across the entire organization, and a good place to start is the ability to collapse time to market. With velocity of data as the new oil, time is our digital currency.