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Fictron Industrial Supplies Sdn Bhd
Fictron Industrial Supplies Sdn Bhd

Is the Supply Chain Ready for Robots?

19-Apr-2019

Supply chain automation as a technique to maintain up with consumer demand and lessen costs is no new concept.  What is new, however, is the handiness of the latest generation of robotics and automation solutions. At the moment, 72 percent of enterprises use robotic automation, and usage is increasing, accelerating deployment of intelligent machines across manufacturing, warehousing and distribution to a record pace.
 
The babble effect is a host of new opportunities and challenges for supply chain organizations, the most significant of which is protecting the skills required and changing the way people work in a more digitized industrial environment.
 
Each chapter of the Industrial Revolution reveals a normal ebb and flow in the number and makeup of jobs. As early as the steam engine, innovation displaced specified workers with new ones who, for example, had cognitive skills like creativity and problem-solving. This continues with robots. According to the World Economic Forum, by 2022, the shifting labor division between humans, machines and algorithms will result in 75 million dropped job roles, but also an addition of 133 million job roles, netting 58 million.
 
Amazon exemplifies this dynamic. The company had about 45,000 employees when it launched robots in 2014. Now, with upwards of 80,000 robots in operation, Amazon employs more than 600,000 workers. Similar results have been found across the organizational spectrum, from big multi-national employers to small manufacturing companies.
 
Out With the Old, in With the New
 
As technologies advance through each industrial revolution, jobs—and job titles—have shifted to mirror newly required skills. Actually, the latest MIT study concluded that in the past decade, occupations boasting a 10 percent increase in job titles also increased 5 percent faster. Many unheard-of job titles, as an example, emerged through the rise of cell phones, mobile apps, social media and cloud-based services.
 
This development is well underway in the automation age. Job roles characterized as task- or manual process-based are turning down, and even potentially to fade away, in the next few years. Concurrently, traditional jobs, for instance machinists, welders and technicians, are spawning new job roles like “mechatronics,” which combines mechanics and systems design.
 
The quick emergence of new roles presents a huge challenge to companies’ pursuit of automation implementation—and an ever-widening skills gap.
 
It’s Not a Gap… It’s a Chasm
 
Never before has technology disrupted American society at such a rapid clip. The talents gap is projected to leave 2.4 million jobs unfilled between 2018 and 2028, with a potential economic impact of .5 trillion, according to Deloitte. Furthermore, 80 percent of manufacturers report a shortage of experienced applicants for skilled production positions, which could result an 11 percent loss in annual earnings. Even as 80 percent of manufacturing managers are willing to pay more than market rate to fill positions influenced by the skills gap, 60 percent of those positions remain unfilled.
 
New Ways of Learning
 
Experienced individuals are key to corporate success and global economic development. Then again what skills are needed for a future of automation? As Deloitte puts it, digital skills like programming and technology must marry human skills such as for example critical thinking, emotional intelligence and creativity. But if there is one skill to encourage among future workers, it’s the ability to keep learning and adapting.
 
Between 75 and 375 million force out employees may need to change occupational categories and learn new skills by 2030. For the supply chain’s automation age, learning can take different shapes:
 
•             AR and VR can display information across a worker’s field of vision to mimic real-time.
•             Companies can use simulation training for highly complex tasks or dangerous jobs where errors can be lethal.
•             More learning systems will migrate online.
 
The changes will keep coming in the age of robots. Some may perhaps be evolutionary, as workers switch to new technologies, while others will be revolutionary, leading to new industries and job roles. The goal, however, continues to be the same: ensuring that the evolution of our human skills keeps pace with automation.
 
This article is originally posted on tronserve.com
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