Interface Think Tank: I also want to know, in terms of supply chain management and logistics optimization, what are the challenges facing modern factories? What role can advanced technology play?

Federico Torti: Thousands of businesses are facing global supply chain pressures driven by multiple factors, such as changing consumer demands, which require factories to not only increase supply chain transparency, but also increase data sharing and connectivity with suppliers, partners and even competitors. In addition, laws and regulations and requirements for corporate sustainability have increased, and the demand for supply chain resilience has increased significantly.

DC532-1SAP240100R000  In this context, enterprises must deal with complex supply chain issues and increase supply chain resilience. Such as finding alternative suppliers for specific products, raw materials or components, or considering the reconfiguration of the manufacturing base, this also needs to consider the policies of different countries around the world. However, any form of replication means additional investment.

We have examples of how technology can help bridge these gaps and eliminate inefficiencies, particularly in promoting transparency in supply chains. For example, we have recently witnessed the closure of the Suez Canal and the Red Sea, and in March 2021, the Suez Canal was completely closed due to a blockage of a transport ship, causing delays in logistics distribution. Improving the visibility and availability of supply chain data, enabling instant interaction and scenario forecasting, helps reduce the buyback effect and upstream bullwhip effect (a phenomenon in the supply chain where demand variation amplifies the distortion of information flow from the end customer to the original supplier).

There is not enough data visibility for suppliers, making it difficult for businesses to cope with extreme fluctuations in demand and supply data. Data-based AI and analytics tools can reduce and prevent these.

The tasks of manufacturing workers are changing

Interface Think Tank: You just mentioned that AI applications can reduce people’s boring work, how do you think the development of “lighthouse factories” will affect traditional manufacturing workers?

Federico Torti: That’s a good question. Our analysis of data collected from 153 “lighthouse factories” reveals that the tasks of manufacturing workers are being transformed through the right and efficient application of technology. This change creates an environment in which employees can continue to learn and develop, and the types of work or tasks they face are constantly evolving. As a result, each worker and each job exhibits greater efficiency and productivity.

DC532-1SAP240100R000  The work environment has also become more dynamic and people are excited to learn and participate in technological change. The “Lighthouse Factory” work environment significantly increases employee engagement compared to companies that have not been digitally transformed. Moreover, the jobs of workers and their skills will be adapted to the changing needs of both inside and outside the factory, which is especially important in today’s rapidly changing work environment.

Today, we have easier ways to interact with systems, such as a new generation of artificial intelligence based on natural language, and the barriers to interaction between workers and AI systems are being lowered. Systems may instruct workers on how to adjust product designs or configure machines in a particular way, which in the past required a great deal of knowledge and a deep understanding of the job and other people.

It is true that with the continuous development of artificial intelligence and automation technologies, the skills required of workers in the traditional sense are changing. This does not necessarily mean that all workers will need higher education, but it does mean that they will need to have new skill sets, and these skill sets may include interaction and collaboration with AI.

Federico Torti: I understand what you’re saying. It is true that we do not need workers trained in the traditional education system in all cases. Due to the rapid changes in the working environment, it is necessary for companies to provide continuous learning opportunities both internally and in the workplace. Therefore, the learning and skill upgrading of modern workers not only comes from personal educational background, but also requires the ability to adapt to changes quickly. The workplace needs to provide the necessary tools to enable employees to use the system effectively and understand how to use these tools effectively. Relying on the resources available at work, continuous learning becomes more dynamic and necessary, and this education becomes part of a career.

In addition, with the popularity of digital learning platforms, these platforms can be easily integrated into training programs, providing employees with continuous learning opportunities. We expect tools like generative AI to simplify learning, facilitate human interaction, and equip employees with the right tools.