________________________________________________________________________________________ Artificial intelligence
AI will give organizations an upper hand in identifying suppliers that may be linked to non-compliance when it comes to issues like forced labor . Collaborating with suppliers to solve the problem is then possible , but if the risk to an organization remains high , finding alternative sourcing may be necessary to maintain compliance . precision , businesses can effectively track where future supply shortages may occur and identify alternative sources in advance .
Increasing security through risk-scoring
AI is fundamental to the future of SCRM . Whether it ’ s optimization , increasing accuracy , or identifying vulnerabilities in supply , ongoing innovation makes effective and secure SCRM a possibility for businesses of all sizes . Risk scoring is just one of these innovations . AI can be used to highlight suppliers with vulnerable practices like links to materials originating from China ’ s Xinjiang Uyghur Autonomous Region ( XUAR ), for example .
Through in-depth supplier audits on risk types like compliance or cyber-attacks on IT and OT systems , and the wider supply chain , businesses can pinpoint exactly where their weaknesses lie . As due diligence reporting requirements increase ,
From reactive to proactive
As data becomes even more important to a company ’ s day-to-day operations , a proactive approach to SCRM is even more important . The rise of cyber-attacks is a real threat that could take manufacturing offline and jeopardize supply . Take the example of semiconductor manufacturing in Taiwan . Taiwan produces around 90 percent of the world ’ s advanced microchips , but it faces 15,000 cyber-attacks every second . By staying proactive and addressing weaknesses in advance of issues emerging , businesses will be better prepared for the next inevitable disruption – even avoiding it altogether .
AI ’ s role in improving SCRM is gamechanging , making supply chains more responsive and resilient than ever . But to reap the rewards , businesses must invest in tools like multi-tier mapping and AI-powered 24 / 7 risk monitoring . Only then will they have the tools to improve visibility , pinpoint weaknesses , and remove vulnerabilities in the supply chain . ■
Sumit Vakil www . resilinc . com
Sumit Vakil is the Co-founder and CPO at Resilinc , where he is responsible for Resilinc ’ s product and technology vision , direction , and delivery . With 25 years of experience bringing innovative technologies to market , Sumit has served in leadership roles at successful startups as well as Fortune 500 companies like Brocade and Cisco .
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