2896: The Role of AI in Enhancing Supply Chain Efficiency and Security

[00:00:00] Could today's technology be the key to enhancing both productivity and wellbeing in the workplace?

[00:00:09] Well in today's episode of Tech Talks Daily I want to explore the intersection of human

[00:00:13] centred management and innovative technology within the supply chain sector.

[00:00:20] Because joining me today is Matt Gregory, he's the Managing Director of Northern Europe

[00:00:25] for Corber Business Area Supply Chain and he brings with him over 17 years of industry

[00:00:32] expertise to this conversation.

[00:00:34] And I'm going to ask him to share his insights on how he is seeing technologies such as AI,

[00:00:40] robotics and digital twins that are not only optimising warehouse operations but are also

[00:00:47] crucial to improving overall employee satisfaction and retention.

[00:00:52] Now I think this is such an important topic because there's a lot of nervousness around

[00:00:56] technology taking jobs and we're seeing the rise of smart warehouses.

[00:01:01] I want to learn more about how technology and humans are not competing against one another

[00:01:06] but actually complementing each other.

[00:01:09] So buckle up and hold on tight as I beam your ears all the way to Milton Keynes here in

[00:01:14] the UK where Matt is waiting to join me.

[00:01:18] So a massive warm welcome to the show.

[00:01:21] Can you tell everyone listening a little about who you are Matt and what you do?

[00:01:25] Yeah, thanks Neil.

[00:01:26] So great to be with you today.

[00:01:29] My name is Matt Gregory.

[00:01:30] I'm the Managing Director in Northern Europe for Corber Supply Chain Software based in

[00:01:36] the UK.

[00:01:37] So I've got a team of about 150 people based out of the UK that focus their lives and daily

[00:01:44] activity around supply chain technology and it's great to come and join you today to talk

[00:01:49] about some of the trends that we're seeing in the market.

[00:01:53] Well thank you for sitting down with me today.

[00:01:55] Every day I always say technology works best when it brings people together and we often

[00:02:00] get so distracted by the shiny next big thing and we often forget the human element to that

[00:02:05] as well.

[00:02:06] And one of the things that attracted me to you is that you've emphasised that employee

[00:02:10] wellbeing is pivotal for successful supply chain management.

[00:02:15] And another thing I try and do on this podcast is get people thinking differently about areas

[00:02:19] that maybe you don't associate with technology and supply chain management is probably one

[00:02:25] of those.

[00:02:26] So can you elaborate on how Corber's solutions prioritise wellbeing and in turn drive productivity

[00:02:33] and retention in the warehouse environment because it feels like there's so much going

[00:02:38] on here, you know?

[00:02:40] Yeah, happily.

[00:02:41] And for me, wellbeing and what I call really the human factors about enabling our people

[00:02:48] to turn up every day and do a great job and enjoy what they're doing for me is the critical

[00:02:55] success factor for any system.

[00:02:57] I think when we talk technology sometimes we can get caught up with the technological

[00:03:03] solution of how does the software work?

[00:03:07] How does the automation work?

[00:03:09] How does robotics work?

[00:03:11] But at the end of the day, the only reason we're using these tools is to enable our people

[00:03:17] to turn up every day, enjoy what they do, love what they do and contribute positively

[00:03:23] towards a great customer experience.

[00:03:25] And for me, I've been in supply chain around 20 years.

[00:03:30] We've made great strides in really understanding that we can design the best systems and processes

[00:03:37] in the world.

[00:03:38] But if we do that in isolation without actually understanding who's going to be using this,

[00:03:44] how do they need to use it?

[00:03:46] And what are we actually asking them to do with it day in, day out?

[00:03:51] We're missing the opportunity to actually ensure this is actually successful.

[00:03:56] If you look at the warehouse and supply chain space, outside of the military, it's probably

[00:04:02] one of the largest employers of people across the globe.

[00:04:07] So for me, the human factors and the human elements of how we use technology in the supply

[00:04:12] chain is critical for us to actually be successful in what we're trying to achieve with it.

[00:04:19] And I suspect we will have a lot of people listening around the world in various industries

[00:04:23] that very seldom think about the rapid advancement of warehouse technologies.

[00:04:28] But it is a huge space for innovation and disruption at the moment.

[00:04:32] And as someone right in the eye of the storm here, I'm curious, what recent trends have

[00:04:37] you observed?

[00:04:38] And any predictions of how warehouse technology will continue to evolve and transform in the

[00:04:43] next few years?

[00:04:44] Because again, a lot of people listening, they'll be blissfully unaware of what's happening

[00:04:48] here.

[00:04:49] I think in the last 10 years, if you think of the rise of e-commerce and some of the

[00:04:53] challenges we had in those pandemic years has really put warehousing technology and warehousing

[00:04:59] and supply chain on a lot more people's radars.

[00:05:02] They've understood that actually the ghost in the machine that ensures that the products

[00:05:08] arrive on the shelf is that warehouse and that supply chain space.

[00:05:12] And they've understood the size of the industry and the number of people that work day in and

[00:05:17] day out, sometimes antisocial hours to ensure that those products and services get delivered

[00:05:24] have become far more visible.

[00:05:26] So what we're certainly seeing is certain warehousing trends in the market is we've

[00:05:33] seen adoption of technologies to enable those individuals.

[00:05:38] So what do I mean by that?

[00:05:40] We've seen adoptions of technologies such as voice directed work to help people operate

[00:05:46] hands free and eyes free in a busy environment such as a warehouse.

[00:05:52] We've seen adoption of automation and robotics, not to replace the human workforce, but actually

[00:05:58] to augment and support them.

[00:06:01] And what we're starting to see now is a really growing need of technology operating systems

[00:06:08] to start to tie together these disparate technologies.

[00:06:12] And for us, I think that's really interesting.

[00:06:14] You've got a lot of incredibly complicated systems that are working very hard to ensure

[00:06:19] we're efficient, we're effective, and we're asking people to use their time in the most

[00:06:24] efficient means and method.

[00:06:27] However, with that rise in the complexity, when the rise of uses of different pieces

[00:06:34] of technology, we've got to make sure that it's coordinated, it's orchestrated.

[00:06:39] And for me, the big trend I'm seeing is a need for a common platform and a layer that

[00:06:46] sits across the software systems that run our supply chains, the technology and the

[00:06:51] tools that we're asking our people to use, and the tools and mechanisms we can use to

[00:06:57] actually give our people feedback in how they're performing as they're going through their

[00:07:02] daily tasks.

[00:07:04] So for me, that common middleware, for want of a better word, or a universal platform

[00:07:11] that sits across the systems, the processes, and the people that allow us to orchestrate

[00:07:17] that effort and to ensure that we're not creating silos.

[00:07:23] Another topic I wanted to explore with you today is technology's role in job creation,

[00:07:28] because there is a common concern out there, especially with the rise of AI, that technology

[00:07:34] and automation, etc., might displace workers.

[00:07:37] We are seeing certain evidence of that in some industries.

[00:07:40] But based on your experience, how is technology actually creating more opportunities for

[00:07:45] employees within the supply chain sector specifically?

[00:07:49] What are you seeing here?

[00:07:51] I think probably to really understand this point, I think it's important for us to realize

[00:07:55] that we have a shortage of people across the supply chain.

[00:08:01] So technology is actually necessary for us to meet the demands for the supply chain.

[00:08:09] And technology is there to augment, support, and enable us to be more efficient with the

[00:08:15] people that we have.

[00:08:18] If I think about the tasks that we are asking people to do in a very manual way, if we go

[00:08:25] back 20, 25 years, everything was manual.

[00:08:30] Everything was paper-based.

[00:08:31] We were asking people to walk long distances.

[00:08:34] We were asking them to fill out pieces of paper.

[00:08:37] We had whole back office teams manually inputting data into multiple different systems.

[00:08:43] So we had people doing a whole range of tasks that quite frankly were not particularly fulfilling.

[00:08:48] They were necessary.

[00:08:49] They were needed.

[00:08:51] But really what we're seeing now with the rise of technology in the supply chain is

[00:08:56] we're able to take away some of those mundane tasks and allow people to focus on the tasks

[00:09:02] that we actually need them to focus on.

[00:09:04] The focus on the more interesting tasks, focus on ensuring that we get the product out to

[00:09:12] the end customer, package beautifully and organize correctly to meet the deadlines that

[00:09:18] we need.

[00:09:19] We try to minimize things like walking time, trying to allow people to work with automation

[00:09:25] and robotics just enables us to be more agile, more dynamic and to operate a little bit faster.

[00:09:31] For me, technology isn't taking jobs, it's enabling jobs.

[00:09:37] What comes with the use of technology is also roles for functions that didn't exist 20 years

[00:09:43] ago.

[00:09:44] You've got teams inside warehouses today that are specialists in automation.

[00:09:49] You've got teams that are specialists in adapting and configuring their warehouse management

[00:09:54] systems to adapt to changes in demand.

[00:09:58] You've got teams that are sat there that are working alongside robotics.

[00:10:03] All of these supporting functions, these roles didn't exist 25 years ago.

[00:10:08] So really it's about the evolution and changing space.

[00:10:15] It's not around automation is taking jobs out of the market.

[00:10:19] It's a necessary tool to enable us to keep pace with the market.

[00:10:22] I was sat at a supply chain event, must be 10 years ago now.

[00:10:29] And the prediction was in the next three years, we're going to need three times more warehouses

[00:10:34] than we have and 300% more people than we have.

[00:10:39] Technology is only allowing us to try and keep pace with that demand.

[00:10:44] It's certainly not taking opportunities out of the market.

[00:10:47] If anything, it's creating.

[00:10:49] Just to bring to life what we're talking about here and help people listening understand

[00:10:53] the value of AI and supply chain efficiency, et cetera.

[00:10:58] How can businesses better leverage solutions and technology to enhance efficiency and productivity

[00:11:04] right across their supply chains?

[00:11:05] Is there anything you can share around here that would just bring that topic to life?

[00:11:10] We talk a lot about AI and the efficiencies that it can bring.

[00:11:15] And for me, warehouses have had a phenomenal 15 years of embracing technology in the way

[00:11:23] in which they've put in modern warehouse management systems, modern warehouse control systems.

[00:11:30] They put in technologies such as voice and robotics.

[00:11:34] Where I see the opportunity for technologies such as AI is to put in more of a proactivity

[00:11:42] in how those tools and systems are used.

[00:11:45] So for the last 15 years, we've done a great job of providing supply chain leaders, ship

[00:11:50] supervisors, supply chain managers with great real-time data to enable them to make decisions,

[00:11:58] to adapt to changes in their demand, to adapt to challenges that come at them on a daily

[00:12:03] basis.

[00:12:04] But we've still been very dependent on those individuals making those decisions.

[00:12:10] We've been dependent on saying, here we are, Neil, this is what's happening in the market.

[00:12:14] Do you want to change how you've configured where certain products are in your warehouse

[00:12:19] to mean that when the orders come in, can we pick them more quickly?

[00:12:23] Can we get them out to our customers more effectively?

[00:12:26] What I'm seeing with AI and our new supply chain technologies is we're actually able

[00:12:32] to make some of those decisions on their behalf.

[00:12:36] We're doing a better job of guiding them and giving them better information.

[00:12:41] I think where we're going to see that evolving is to the systems are now getting capable

[00:12:46] of making that proactive suggestion or amendment.

[00:12:51] And the supply chain leaders are there essentially just to say, stop if they disagree with it.

[00:12:57] As opposed to having to come up with that solution.

[00:13:00] And that's giving them more time to work with their people, more time for them to work with

[00:13:04] their business.

[00:13:05] So for me, it's a really exciting evolution.

[00:13:08] It's not a revolution.

[00:13:09] We're not saying that we need to stop using our brains and allow the computers to make

[00:13:15] the decisions for us.

[00:13:17] It's enabling us to make better decisions more effectively and more efficiently.

[00:13:21] And that's where I see the role of AI.

[00:13:24] And from a security standpoint, it often feels like somewhat of a double-edged sword because

[00:13:29] the integration of AI can present new opportunities for sure and also additional threats for supply

[00:13:35] chain security.

[00:13:36] So what role do you see these technologies playing in better safeguarding the supply

[00:13:41] chain and how businesses can effectively navigate some of these challenges?

[00:13:46] Because it is a bit of a concern, isn't it?

[00:13:48] And it is a big target sometimes.

[00:13:51] It is.

[00:13:52] It goes back to the point I just made around over-dependency.

[00:13:56] It's a decision support tool.

[00:13:59] It is not a black box.

[00:14:01] And I think if you use it as such, you're using it with the confines of your existing

[00:14:07] data pool.

[00:14:08] You're not opening up to the wider internet.

[00:14:12] You're still using it within the pool.

[00:14:14] And when you do that, you're taking a very smart and considered approach to data security.

[00:14:19] All you're actually doing is using AI to interpret this data you already have.

[00:14:27] And as an organization, we're making sure that when we approach this, we're doing it within

[00:14:31] the confines of our warehouse management system or automation systems to make sure that we're

[00:14:36] just saying, here's the data, here's a suggested path forward.

[00:14:41] Does this work for your business?

[00:14:43] When you start to actually go too far down that route and go, actually, let's start connecting

[00:14:48] everything.

[00:14:49] Let's start using tools outside of our systems, then I think you've got a risk.

[00:14:54] I think at the moment it's about leveraging enhancements to existing systems rather than

[00:15:01] opening up to the wider environment.

[00:15:03] So I think a cautious cybersecurity-led approach will give benefits to supply chain.

[00:15:14] It needs to be used in context of what you need from a system.

[00:15:19] I would also add that automated systems are crucial for managing supply chain complexity

[00:15:23] and of course, supporting business growth.

[00:15:26] Incredibly important right now.

[00:15:28] How are you seeing smart warehouses continuously evolving to meet those needs?

[00:15:33] And also, any key factors in successfully implementing such systems?

[00:15:38] We hear a lot of hype around smart warehouses.

[00:15:40] A lot of people know what they need to do, but implementing, things can quickly get complicated,

[00:15:45] can't they?

[00:15:46] As with any tech project.

[00:15:48] I think, for me, most of the warehouses we meet today, Neil, are smart warehouses.

[00:15:53] They've taken that investment into technologies and into configurable and flexible solutions.

[00:16:00] If I go back over a few years, we've really seen a 360 from the supply chain and warehousing

[00:16:08] space being there to support retail and supply retail.

[00:16:14] What we're now seeing is that supply chain and warehousing systems, particularly smart

[00:16:19] warehouses are enabling retail.

[00:16:24] Our consumers are quite rightly demanding flexibility in how they engage with our brands.

[00:16:30] They want to engage through bricks and mortar stores.

[00:16:32] They want to engage through e-commerce and online, but they don't want to engage with

[00:16:37] them independently.

[00:16:38] They want to engage with them as one.

[00:16:41] By doing that, supply chain is enabling that to happen.

[00:16:45] The smartest warehouses that we have today are the ones that can deal with changes in

[00:16:49] demand.

[00:16:50] The ones that can deal with the fact that actually, as we're coming up to peak events

[00:16:55] such as Black Friday, I've got the ability to support my workforce with additional automation

[00:17:02] to make sure that I can increase throughput.

[00:17:05] I also have the flexibility to deal with changes in demand that if my product makes changes

[00:17:11] dramatically, I have flexibility in my system to make quick changes to adapt to that.

[00:17:17] So gone are the days of building a design, spending nine, 10, 12 months really getting

[00:17:24] it right and crossing your fingers and hoping it's going to be the same for the next 10

[00:17:29] years.

[00:17:30] Our customers and our systems are being built with flexibility and adaptability in mind.

[00:17:36] Our configuration tools that we provide to our customers are designed not only for us

[00:17:41] to be able to make changes on their behalf, but for them to be able to make changes on

[00:17:46] their behalf.

[00:17:47] And it loops back to our point around the roles inside a modern business that has a

[00:17:52] supply chain and a warehousing element is they are so broad now.

[00:17:57] We've got people inside our customer base that are adapting and configuring the system

[00:18:03] on a regular basis to adapt to changes.

[00:18:06] They could bring in a new supplier, they can have a new product mix.

[00:18:09] They could decide to put in a new area of their warehouse and having those adaptability

[00:18:13] tools built in allows the system to be flexible.

[00:18:17] And extending that out to not just the system, but actually the user interfaces and the technologies

[00:18:23] that we're using.

[00:18:25] Very few warehouses are one size fits all when it comes to the technologies and tools

[00:18:30] that we give to our team that work inside the warehouse.

[00:18:35] Let's use barcode scanning where it makes sense.

[00:18:37] Let's use voice where it makes sense.

[00:18:39] Let's use robotics where it makes sense.

[00:18:41] Let's use traditional automation.

[00:18:44] For me, that's what a flexible smart warehouse relies on is that flexibility and adaptability.

[00:18:53] Of course, we are seeing a continuously increasing customer demand.

[00:18:57] There's also this increasing need for high throughput operations.

[00:19:01] I don't expect you to name any particular company here, but how are you seeing software

[00:19:06] and automated solutions being successfully leveraged to create those future-proof retail

[00:19:11] environments we're talking about and what that successful implementation looks like?

[00:19:16] I would imagine you picked up quite a few stories and seen a lot of things over the years,

[00:19:20] but what are you seeing now?

[00:19:22] You do have very high throughputs and every organization has a different strategy of how

[00:19:27] they want to service those.

[00:19:28] Do they want to do that from a central operation and do they want to do that from a distributed

[00:19:35] operation?

[00:19:36] What we spend a lot of time doing with organizations right at the very beginning is simulating the

[00:19:42] options.

[00:19:43] We've invested in digital twin technologies and tools that allow us actually to try out

[00:19:50] different options and different ways of configuring the systems, building the systems to allow

[00:19:56] us to see that ahead of time in terms of the implementation.

[00:20:01] Test out those theories in a safe space before putting pen to paper.

[00:20:07] For us, that really is enabling those organizations to make great decisions at the start of a

[00:20:11] major project, but it's also enabling them to go back to that same model once a system

[00:20:19] has been put in, once it's running.

[00:20:22] But if they're then considering a change to how they're operating, giving them really

[00:20:27] a whiteboard for want of a better word to start testing out new ideas whilst the operation

[00:20:33] continues.

[00:20:34] So for me, that digital twin concept of having a virtual environment to start changing and

[00:20:41] adapting your system has become really important.

[00:20:46] When we have that, when we get into that implementation mode, we find it's far, far

[00:20:53] faster and it meets the needs of the business because the business has been able to physically

[00:20:58] see what it is they're getting.

[00:21:01] Well, I cannot thank you enough for taking the time to sit down with me today, share

[00:21:05] your insights.

[00:21:06] But before I let you go, I'm going to ask you to leave everyone listening with one final

[00:21:10] gift.

[00:21:11] We have an Amazon wishlist here.

[00:21:12] I always ask my guests if there's a book that means something to them or just something

[00:21:16] that they would recommend that anyone listening will check out and I'll add it to our list.

[00:21:20] But what would you like to leave everyone listening with and why?

[00:21:24] So the book that's probably had the biggest impact on me in my career is a book called

[00:21:30] Turn the Ship Around by David Marquet.

[00:21:33] And for me, it's around turning followers into leaders.

[00:21:38] And I think based on our conversation today, Neil, the most important thing for any supply

[00:21:44] chain organization to ensure they do is turn those followers into leaders, enabling people

[00:21:52] at every level of the organization to make a positive impact, enabling that 18 year old

[00:21:58] that walks onto the warehouse floor for the very first time with the best opportunity

[00:22:02] for success from day one.

[00:22:04] And this book is a great example how principles of leadership, ownership and autonomy can

[00:22:11] be implemented at every single level of an organization.

[00:22:15] So it's a great read and I highly recommend it.

[00:22:18] Wow, what a great choice.

[00:22:19] I'll get that added straight to our Amazon wishlist.

[00:22:22] And for anyone listening just wanting to dig a little bit deeper, find out more information

[00:22:26] about Corber Business Area Supply Chain and the great work that you're doing there, what

[00:22:31] is the best place for them to start, especially if they want to contact you or your team?

[00:22:36] So please reach out via our website.

[00:22:40] We've got our team available to respond back to those questions or demands.

[00:22:45] Please reach out to myself directly and we'll put our team in contact with you.

[00:22:50] We just love to have a conversation.

[00:22:51] We've been doing this for a long time.

[00:22:54] We love spending time with other people in the space, just talking about what they're

[00:22:58] doing and seeing if there's a way in which we can help them.

[00:23:01] Excellent. Well, I will get links to that added to the show notes so people can easily

[00:23:06] click on there, find you nicely.

[00:23:07] We covered so much there from productivity and wellbeing in the warehouse, AI in the

[00:23:12] supply chain, smart warehouses, managing supply chain complexity and ultimately creating

[00:23:18] future-proof retail solutions and even had time to leave us with a cracking book too.

[00:23:23] But thank you so much for sitting down and sharing your story and insights today.

[00:23:27] You're very welcome.

[00:23:29] What a great conversation.

[00:23:30] And if anyone wants to dig a little bit deeper on anything we talked about, please visit

[00:23:35] corbetsupplychainsoftware.com.

[00:23:38] That's K-O-R-B-E-R, corbetsupplychainsoftware.com.

[00:23:44] We covered a lot of ground today, discussing everything really from the role of AI in

[00:23:48] supply chain efficiency to how smart warehouses adapt to meet those evolving customer

[00:23:54] demands. And for me, I think it's clear that technology can be a powerful tool for

[00:23:59] enhancing productivity and employee wellbeing.

[00:24:04] And yes, it presents new challenges, new complexities, but what are your thoughts on

[00:24:09] using technology to both support and advance the workforce?

[00:24:13] Because this is a topic I don't think gets talked about enough.

[00:24:16] So please share your views with me.

[00:24:18] Let's keep this conversation going.

[00:24:20] You can email me techblogwriteratoutlook.com, Twitter, LinkedIn, Instagram at

[00:24:25] Neil C. Hughes. Nice and easy to get hold of.

[00:24:27] But let me know your thoughts.

[00:24:29] So yes, today with supply chain, our technologies like AI, robotics and digital

[00:24:35] twins are not only optimising warehouse operations, but proving to be crucial for

[00:24:40] improving employee satisfaction and retention.

[00:24:43] Tomorrow, I've got a completely different topic to discuss.

[00:24:47] But once again, we'll talk about how technology works best when it brings people

[00:24:52] together and complements the human workforce rather than competing against it.

[00:24:56] So hopefully you'll join me again tomorrow.

[00:24:58] It's another great one. But thank you for listening today and until next time, don't be a stranger.