The location of low-cost labor largely shaped today’s global supply chains. But that has changed dramatically in the past five years. Technology is finally ready to replace human labor across a broad range of supply chain activities, which will provide companies with more opportunities to operate where they choose and reduce their dependence on Asia.
Savvy companies are busily exploring how they can employ a host of new technologies to make their end-to-end supply chain much more resilient yet still competitively cost-efficient. Those that succeed will take an artificial-intelligence-plus-human intelligence (AI + HI) approach. They will revisit what customers really value and bring the supply chains for higher-margin products closer to home first.
The Current Challenge
Today’s global supply chains were designed to operate with high reliability, at the lowest possible cost, in a steady state environment. Unfortunately, supply chains have lately been…
This article was written by Suketu Gandhi and originally published on hbr.org