Seeing is believing in the warehouse and beyond

Don’t miss out on the latest developments in supply chain management.

Greater visibility in the supply chain aids efficiency and the extension of AI looks like the latest positive step on that road – but does it also carry the risk of businesses ‘drowning in a data tsunami’? Ruari McCallion has sought out expert opinion.

(Executive Summary)

Mixed systems’ inefficiency

The challenges are not just hypothetical and there is no reason they should simply be accepted on the grounds that ‘that’s just the way it is’, in the words of the song. We have seen huge advances in technology in the past 30 years, without which many logistics services today would be impossible – but they sit alongside old, manual systems, while the new systems themselves never seem to quite deliver on their promises.

The latest promise is about AI – artificial intelligence. So far, it has proven impossible for mere human beings to create and properly operate a fully transparent supply chain, no longer ‘pregnant with inventory’ but delivering healthy, full-weight, bouncing consignments, on time and to the right place, even with all the IT to hand. Would it be better now to stand aside and let the machines talk to each other and sort things out? AI has made impressive inroads in manufacturing design and development; will it be able to cut the time lost to problem-solving and resolution?

AI: helpful but not perfect

“AI isn’t a magic bullet, but it can play a crucial role in alleviating this complexity and effectively addressing the challenges in modern supply chain management,” said Marc Overton. AI-driven or augmented technologies, like predictive maintenance, demand forecasting, quality control, supply optimisation and automation, can help businesses reduce downtime, boost responsiveness, manage inventory, and remain competitive, he agrees, but it isn’t perfect.

“It still falls short in two critical aspects. First, understanding and interpreting the intelligence generated by AI is not always intuitive for users. Second, taking actionable steps based on that intelligence can be challenging.”

Eliminating lost time

Faki Saadi, Director UK&I at SOTI, which specialises in ‘business-critical mobility solutions’ (mobile management technology, such as handheld equipment), says that effective device management is a critical factor but one that is often overlooked.

“These tools are the backbone of tracking stock movement and keeping operations running smoothly. Yet when they fail, the impact is significant. A recent SOTI study found that workers in the UK’s transportation and logistics sector lose an average of 11 hours of productive time each week due to device issues.”

Such time losses don’t just slow processes; they directly compromise and frustrate the transparency that businesses are working to achieve. It’s not hard to see why mobile devices in warehouse management have to be ruggedised. It’s not just about accidental droppages; the temptation to throw a device that isn’t working, yet again, can be impossible to resist – and smaller companies may find the lure of technology all too easy to resist, having become familiar with such stories.

Step by step

“For smaller companies, the prospect of adopting new technology can feel overwhelming, especially when faced with tighter budgets, but the key is to start small and scale up gradually,” Faki Saadi said. “Rather than overhauling entire systems, businesses should identify specific pain points and focus on low-impact, high-value initiatives, such as digitising manual tasks or implementing mobile workflows.” These will deliver quick wins and lay the groundwork for successful future steps along the technology path.

Francisco Gaffney noted, “Investing in better systems isn’t just about performance, it’s about control. When you know where your materials are, who touched them, and what’s due next, you reduce error, cost and risk in one go.”

Winning combinations

“A combination of AI-enabled optimisation, machine learning, and virtual twin technology can help businesses overcome these challenges,” said Marc Overton. “With this, users gain a deeper understanding of the AI-generated intelligence to make informed decisions and optimise production.” Dassault Systèmes’ offer is its DELMIA suite, which is designed to integrate operations across the supply chain.

“While AI alone may not be a magic bullet, the strategic combination of AI, machine learning and virtual twins – as seen in Dassault Systèmes’ DELMIA suite – has already begun to deliver true transformation potential in making chaotic supply chains more responsive, lean, and ‘just in time’ across the entire network.” Dassault claims real-world reductions of up to 50% in order backlogs as well as significant cuts in holding costs, while increasing the agility and resilience of the supply network.

Marc Overton describes AI’s role in supply chain planning as “mathematically optimising variables to enhance predictive maintenance, production efficiency, and overall supply chain optimisation”. It isn’t just about managing consignment movements. AI fine-tunes the complex attributes of the supply chain to boost efficiency but it also has a crucial value in predicting when machinery or equipment may need maintenance.

Better vision

AI has an essential role to play in enabling supply chains to be ‘digitally twinned’ and to enable companies to model and optimise their supply chain operations in real time, too. Digital twinning means they can test-drive scenarios, identify inefficiencies and make data-driven, real-world decisions. For warehouse management, virtual twin technology can turn real-time visibility and historical analytics into performance across multiple plants.

“Predictive analytics is key to anticipating and resolving supply chain issues in real time and ensuring supply chain sustainability,” Marc Overton said. AI isn’t the magic bullet that will transform logistics overnight but it’s a valuable and, increasingly, essential tool – in the right place and the right circumstances. As with much technology, get the foundations right and then you can build.