On September 5th at Berns in Stockholm, we opened the doors to the Optilon Supply Chain Conference 2024. It’s no secret that the world is changing rapidly. With the theme Navigating the New Era, we focused on understanding how these changes affect our businesses and how to stay competitive in this evolving market.
The day was filled with valuable insights from several outstanding speakers, along with a matchmaking segment where we had the opportunity to discuss both future challenges and opportunities in the industry.
Did you miss the conference? No worries—here’s a recap of the event!
NAVIGATING THE NEW ERA
The conference began with a breakfast where over 300 supply chain professionals gathered, energized for an insightful day ahead. Afterward, our moderator Sabinije von Gaffke welcomed everyone for the 10th time in a row.
Throughout the day, attendees were treated to a diverse range of perspectives and expertise from industry leaders:
First up was Alexandra Stråberg from Länsförsäkringar, who spoke about how the global perspective is business-critical and how it affects everyday life at national, regional, and local levels.
Vivienne Carney and Jim Thulin from AAK discussed how food safety and contaminant control are more critical than ever before. They explored ways to minimize the disruptive impact these issues could have on our operations and supply chains.
Maria Dahlén from Epiroc shared experiences and insights on the supply chain disruptions Epiroc has faced in recent years, beginning with the pandemic. She emphasized how we can effectively plan and prepare for future disruptions.
Hagen von Petersdorff from IKEA explored the transformative journey of integrating data science into supply chain operations. He highlighted the strategic shift that many companies, including IKEA, are making by bringing key analytics roles in-house.
Henrik Kniberg from Hups & Flitig.ai shed light on generative AI and how we can keep up with this rapidly evolving technology. He explained how both individuals and companies can stay relevant in the Age of AI.
Kim Gaba Jensen from Tesla talked about how Tesla is innovating the industry, manufacturing, and modern car ownership. He also shared the secrets behind Tesla’s staggering 55.4% compounded annual growth rate.
The final keynote speaker was Micael Dahlen, Professor of Wellbeing. He demonstrated how we can get more out of life, our relationships, and our careers. He shared findings from his own research, as well as others, and provided us with tips and tricks that are scientifically proven to help us enjoy our lives just a little bit more.
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MATCHMAKING
This year we introduced a special feature at the conference: supply chain matchmaking. Throughout the day, attendees had the opportunity to network with various professionals in the industry. Those interested in learning more about S&OP, Planning, Supply Chain Design, or AI & New Technology were able to discuss these topics with Optilon experts in the field.
These interactions did not only foster valuable connections but also inspired new ideas and collaborations within the supply chain community.
MINGEL & NETWORKING
In addition to the matchmaking segment, attendees had the opportunity to connect with like-minded professionals while enjoying delicious food and special supply chain-themed drinks. We also had an Optilon reporter mingling with the crowd, who asked the participants questions about future trends—stay tuned for those insights!
KEEP AN EYE OUT
If you missed the conference or want to share it with a colleague, we have gathered all the inspiring keynote presentations and mingling photos, which will be launched soon! Follow us on LinkedIn to be the first to know when they go live.
A lot is happening in the world right now. Understanding these changes, how they affect our businesses, and the critical role the supply chain plays, is necessary to navigate the future and maintain competitiveness in the market. This article outlines 5 supply chain trends in 2024 by supply chain experts Anders Remnebäck and Fredrik Jersby that you shouldn’t ignore.
1. Robotics and autonomous vehicles will revolutionize last-mile delivery
There is a huge wave of technological progress underway, leading to advancements and breakthroughs. Robotics and autonomous vehicles are at the forefront of this transformation, although it has taken longer and proven to be far more challenging than anticipated.
The ultimate challenge lies in achieving fully autonomous vehicles capable of navigating entirely new urban environments without prior training or constraints in that particular area. This involves more than simply getting from point A to point B; it is about mastering complex real-world scenarios.
Similarly, integrating robotics into human environments presents its own set of challenges. But if we can create bots with human-like abilities, from ordinary tasks to understanding nuanced contexts, and combine this with fully autonomous vehicles, last-mile deliveries will be revolutionized.
Having a vehicle that efficiently travels from point A to point B is one thing. Still, the last 20 meters present a unique challenge: delivering the package, navigating to the building, ringing the doorbell, or leaving the package securely. Without solving this final leg, the efficiency of reaching point B is diminished.
It is evident that we are steadily progressing in this direction, leveraging technologies like reinforced learning, and neural networks. Once all the necessary components align, the impact on the entire supply chain will be profound.
As one of the founders of Skype pointed out, this could even make delivering something as small as a single toothbrush profitable. The question is: How long will it take to fully realize this vision?
2. AI and automated decisions will replace humans
In the past year, there has been explosive growth in reinforced learning and neural networks, opening new possibilities for supply chain planning. We foresee that this advancement will pave the way for digital supply chain planners and autonomous supply chains capable of making decisions based on sophisticated models.
We are moving towards a future where human involvement in decision-making becomes less prominent, mirroring previous transitions in technology adoption. Historically, we transitioned from manual processes to automation with the introduction of industrial robots, followed by the integration of Enterprise Resource Planning (ERP) and advanced planning tools.
As more decisions become automated, this shift may lead to a reduction in the roles of middle managers. However, humans will continue to play a pivotal role, becoming more involved in dialogue and collaboration with automated systems. Human expertise will remain essential in guiding and fine-tuning these automated processes to align with strategic objectives and evolving market dynamics.
3. Electrification will impact industries unable to transition fast enough
The transition to electrification is a critical trend that calls for urgency. The scale and complexity of shifting the world from fossil fuels to renewable energy are immense but inevitable. It won’t happen overnight; rather, it will unfold gradually, with hybrid solutions emerging before complete electrification.
And there will be winners and losers. For companies reliant on fossil fuel-driven transportation, understanding and planning for this transition is paramount. However, this requires a certain scale and capability. Companies with legacy investments in outdated technologies will struggle, while others, like Tesla, are poised to accelerate this transition through vertical integration.
In Europe, the failure of car manufacturers to adapt to electrification could have significant consequences on jobs and compliance with new regulations, such as bans on gasoline and diesel cars.
In essence, the electrification trend represents not only a technological but also a geopolitical shift with far-reaching consequences. Only companies that proactively plan and innovate will thrive in this new era of sustainable energy.
4. The transition from on-premise software to cloud will bring challenges
There has been a noticeable shift towards cloud services, with companies increasingly favoring web-based solutions over traditional on-premises setups. Initially driven by consumer-oriented needs, this trend has extended to the entire Enterprise Resource Planning (ERP).
Moving critical transactions and data to the cloud offers significant cost benefits. However, this transition may also introduce limitations on flexibility and adaptability, raising concerns about potential lock-in effects, integration costs, and data accessibility.
One pressing question is whether cloud systems will become more closed and rigid or if customers will demand greater access and interoperability. As companies navigate this transition, it is important to carefully evaluate the trade-offs and consider their long-term strategic objectives.
5. A turbulent world will demand a shift in supply chain strategy
We find ourselves in a new era marked by significant turbulence globally. From war and conflicts to climate change and new legislation. This increased unpredictability has underscored the importance of supply chain and the ability to withstand disruptions.
As a result, the interest in scenario modeling and understanding the consequences of events is rapidly growing. More companies recognize the need to invest in people who understand supply chains and systems that can help them swiftly react to events when they happen – and more importantly – proactively anticipate and mitigate risks.
To reduce risk exposure, many are moving towards more regional and local supply chains. This shift represents a departure from the previous focus solely on cost optimization. While centralizing operations can offer cost savings, there are risks associated with a single point of failure. The expenses of redundancy are now outweighed by the potential consequences of its absence.
At the same time, new sustainability legislation is reshaping supply chains, mandating not just reporting but also restructuring supply chain operations for compliance. This means companies will want to balance sustainability with cost and risk as well as service levels to make trade-offs and conclude when to use which strategy.
To navigate these changes effectively, companies must establish robust foundations for decision-making. Planning is key, and continuously exploring alternatives and scenarios and developing action plans are crucial to meet future challenges.
Authors Fredrik Jersby and Anders Remnebäck have deep knowledge and vast experience in the supply chain field.
Do you need the help of a supply chain expert?
Understanding the ramifications of these changes and trends is paramount. Remaining stagnant is not an option; instead, embracing a forward-leaning approach is essential for adaptation and success. The goal is to create supply chains that are resilient, adaptable, and sustainable, capable of weathering the storms of an increasingly turbulent world.
At Optilon, we are experts in efficient supply chain decision-making. Our solutions help businesses design and optimize their supply chains through well-proven processes and technology. We can help you create a future-state roadmap with scenario comparisons and analyses. We can assist in articulating supply chain complexity and relevant actions, evaluate the consequences and risks, and make decision recommendations. Sounds interesting?
