Supply Chain Discussion: The Data Quality Trap

In this discussion with Russell Goodman, Anand Medepalli, chief product officer at Shippeo; details how supply chains can be made "anti-fragile."

Defining his terminology, Medepalli says anti-fragility is the notion that resilience is no longer enough in supply chain. An issue we have spoken about here. Gone are the days when there were a handful of supply chain disruptions, he says. “Now, they're faced with thousands of disruptions each day, and that's not an exaggeration.”

Likening the supply chain to the human body that is “resilient” because of a flu shot, he asks, “Wouldn’t it be great if your body's DNA evolves so that you don't have to take another shot? That's being anti-fragile. Therefore, what we want supply chains to do is to not only learn how to deal with a disruption at a time, but have the ability to deal with any disruption that is coming their way.”

Complete visibility in the supply chain is mandatory. It leads to having high-quality data in hand. Engaging that in a smart way is how to achieve anti-fragility, he says. Nucleus would also argue that not being beholden to any single carrier or service provider would be another. Something we have talked about here.

“It all starts with data, and that's the reason why focusing on that as a primary requirement is supremely important,” Medepalli says. “Get the right data quality, and everything else starts to fall into place. Wrong or inaccurate data is a trap.”

Of course, every plan begins to fall apart the moment you publish it, he says. “When you put a plan together, you have to have alternatives, scenario planning and capabilities.” Practicing different scenarios illustrating what can go wrong, say, with shipments, can pinpoint network weaknesses or areas likely to fail if disruption occurs.

Turning to artificial intelligence, he says AI is good at communication and has a positive supply chain role to play. “Remember, supply chain is one of those systems where an incredible amount of trust is placed in everyone. AI has the ability to be the communication center.”

But Nucleus will add, that AI may struggle to solve the supply chain problem that $100 and smart executives have been unable to solve. The problem of aligning incentives.

Source: Supplychainbrain