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Cleo 2020 Predictions: AI, Trade Tariffs and Regulatory Disruption

VMblog Predictions 2020 

Industry executives and experts share their predictions for 2020.  Read them in this 12th annual series exclusive.

By Dave Brunswick, VP of Solutions at Cleo

AI, Trade Tariffs and Regulatory Disruption

2019 was a huge year for every business along the supply chain, from manufacturers to wholesalers, logistics and delivery. As the supply chain industry continues to modernize and step away from legacy processes in 2020, we will begin to see an even more distinct shift in the traditional supply chain.

Additionally, economic uncertainty and other uncontrollable factors will create new hurdles to address and overcome 2020 and beyond. Below are a few thoughts about what we can expect to see in 2020:

As the supply chain continues to modernize and enough data is collected as a result, Artificial Intelligence (AI) and Machine Learning (ML) will play an integral role in streamlining traditionally tedious processes:

Because the supply chain industry has historically been slow to adopt when it comes to digitization, there simply hasn't been enough collected data for AI/ML algorithms to make reliable suggestions. As we start to see a more modern supply chain emerge in 2020, AI and ML algorithms will enable a 30,000 foot view of the supply chain and provide valuable insights to ease previously tedious processes like product redirects, new partner and supplier onboarding, order cancellations, oversupply and more

Regulations like GDPR and California Consumer Privacy Act (CCPA) will simultaneously create hurdles for businesses but there will be even more pressure places on regulators to hold businesses accountable:

In addition to CCPA, we can expect host of other regulations coming down the track in 2020 and beyond. Unless there is consistency of approach between states, it will become more difficult for companies to comply with all the different policies out there. If regulation is too restrictive and variable across state boundaries, it could create a significant barrier for expanding businesses. On the flip side, if regulation is too loose and doesn't have real teeth when organizations don't comply, then there is little point in implementing it since it will not materially affect behavior. The challenge for states is to plot a course through the middle.

Recent trade tariffs and other economic events will continue to create friction with international trade partners and businesses will need to be agile and resourceful in times of uncertainty: 

Unpredictable events like international trade tariffs, project yellowhammer and no-deal Brexit will continue to threaten supplier relations, costs and global supply chain partnerships - with delays at the border for the flow of goods lasting up to six months. Companies will prioritize a superior system of communication between partners and customers to ensure organizational agility and safeguard against potential devastation. Manufacturers, retailers and logistics companies that achieve tighter integration between systems, partners and applications (and can onboard or offboard each as needed) will build the most resilience during economic uncertainty.

In the midst of change and uncertainty, it'll be more important than ever in 2020 for companies along the supply chain to have full visibility into their operations and streamlined communication with every touchpoint to make sure thing run smoothly despite unexpected changes.


About the Author

Dave Brunswick 

Dave is the VP, Solutions leading Cleo's worldwide pre-sales and solutions team. He brings more than 25 years of experience in technical sales, pre-sales, technology strategy, engineering, product management, and product development. He holds an M.A. in mathematics from Oxford University.

Published Friday, December 06, 2019 8:02 AM by David Marshall
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