Artificial Intelligence

8 Keys to Ensure Ethical Sourcing Standards

An image of gears with text overlay that has ethical statements.

In my last blog, I spoke about ethical sourcing and the many benefits it can have for your company. Seems like a no-brainer, right? When attempting to put in a plan to obliterate unethical practices in your supply chain, it starts to be risky business. The best way to mitigate risk is to set up a solid plan and be diligent about following through with it. 

In my research to find a clear plan to mitigate unethical practices, I found a slew of proposed methods. Unfortunately, I felt that many of them seemed too simple—basically, too easy and too good to be true. I finally came across a solid and thorough plan proposed by Declan Kearney, the founder of 360° Supplier View, who shares tips with companies to ensure ethical sourcing practices in their supply chain.

Do Your Research

Make sure you do your research on your suppliers…and their suppliers. With myriad complex regulations now put in place, go out and learn from case studies and the resources that will act as a survival guide as you attempt to research your vendors and suppliers.

Stay Away from the Fat Cat

Assess whether the higher-ups in your supplier organization are well known or politically aligned. These individuals are more susceptible to bribery or corruption.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG

Getting Smarter with RPA

Machine learning capabilities allow a bot to identify a mistake and apply a fix.

As the Robotic Process Automation (RPA) market matures, enterprises are taking stock of lessons learned and exploring ways to take existing RPA capabilities to the next level.

Early days were characterized by excitement over the dramatic productivity and cost-saving benefits enabled by RPA. Over time, however, the limitations of rules-based bots have emerged. For one thing, basic RPA tools can’t adjust to new conditions or changes in their environment. Even the slightest deviation from the process they’re trained to follow triggers an exception that requires a human to step in, thereby sapping the solution’s productivity.

Another issue is the complexity surrounding deployment of RPA bots. While instructing a bot to perform a task is relatively easy, it does involve a level of programming expertise. Most end users of RPA are on the business side and lack the requisite technical knowledge. That means that setting up a bot requires an RPA programmer. Demand for RPA skills, meanwhile, is through the roof.  (Witness the volume of urgent “we’re hiring” notices on LinkedIn pleading for people with Automation Anywhere, Blue Prism and UiPath certifications.) As a result, because the intervention of scarce technical resources is required, bottlenecks often occur when deploying a bot for a business user.

Alex Kozlov, Director of Content for Softtek US & Canada

Dropping the L in Machine Learning…is Machine Earning on the Horizon?

blockchain

At Singularity University’s Global Summit, keynote speaker David Roberts posed the question, “What if machines made more money than people?” Sounds crazy…but is it? With Blockchain, could that be the way of the future?

I confess that when he asked the question, I still didn’t feel comfortable enough with the concept of blockchain to have an informed opinion on the viability of it. So I did what 77% of people do when seeking information on the Web…I Googled it…and I kept Googling it until I found articles that dissected the concept well enough that it made sense. If you are equally confused by the term, hopefully this analysis will benefit you as well…because rest assured, you WILL need to understand it—especially if you work in sourcing, outsourcing or supply chain as the potential is unlimited.

Fundamentally, blockchain allows consumers to transact directly with one another without the need for an intermediary, like a bank. If you use Paypal and select “eCheck” as your payment method to reimburse a friend for say a concert ticket, it appears to go directly from you to them. In actuality it first has to clear your bank, which can take 3-5 business days, or up to 8 days if another country is involved. Blockchain removes the middleman by using digital currency (aka cryptocurrency) which can be spent with companies or people who are set up to accept it as a form of payment. The digital currency can be converted to cold, hard cash, but with thousands of companies now taking digital payments it is not really the norm.  

Sarah Holliman, Chief Marketing Officer, SIG

The Impacts of Artificial Intelligence on Medicine

Our world is shaped by technology. From the second we wake up until the moment our heads hit the pillow at night, we are constantly interacting with technology to manage our lives, to get us from point A to point B or to check in on our loved ones through social media. We interact with Artificial Intelligence (AI) so often that most of us don’t even realize that we’re doing it. And if you’re anything like me, it’s easy to get distracted or overwhelmed by the new, flashy inventions that seem to be released daily. AI makes our lives easier, can even make a person’s life safer and in some cases, it can extend it.

I’m currently seeking my nursing degree and in my Essentials of Nursing class, it was discussed that in the US alone, 50% of all adults are living with at least one chronic disease. These illnesses not only have an impact on a person’s overall health and their independence, but it can also pose an enormous financial burden. In 2015, the total national health expenditures were $3.2 trillion and those costs are continuing to increase, especially as our population ages. Within 10 years, the population of people above 65 years of age will exceed the number of children under five for the first time in human history.

Brittany Miller, Marketing Analyst, SIG

Getting Started with RPA

The Hackett Group, in conjunction with Symphony Ventures, recently published a whitepaper regarding Robotics Process Automation (RPA). (You may recall that Symphony Ventures conducted an excellent RPA proof of concept at the SIG 2017 Spring Summit with American Honda.) In this whitepaper, the authors provide a blueprint for selecting sourcing opportunities appropriate for RPA. Any sourcing professional worth their salt, should be considering RPA as a viable strategy after reading this statement, "Individual tasks of such processes may be fully automated with RPA, eliminating 100% of labor and up to 90% of cost. The total efficiency improvement achievable through holistic transformation using RPA across end-to-end transactional process can add up to 50% to 75% of baseline cost."

Mary Zampino, Senior Director of Global Sourcing Intelligence, SIG

Are Smart Devices Making Us Dumb?

I used to have many phone numbers memorized. It was second nature to pick up the phone and dial someone’s number. Now the term “dial” even seems a little obsolete when it comes to phones. How many millennials have even seen a rotary phone with an actual dial? But it has made me start to wonder…is the ubiquitous use of smart devices making us actually think less?

I suppose that in some ways it was inevitable. Calculators made it possible for people to quickly arrive at answers to problems that previously took a lot of time and many steps to complete. And in much the same way, every technology that connects to another technology to give us immediate access to information we weren’t easily able to get otherwise, eliminates our need to use our brain to find it. Now I'm not saying this is a bad thing…but I do think it makes us a little lazier.

Case in point…one of my daughters has Type 1 diabetes. When she was diagnosed, we agonized over every meal; figuring out what she was planning to eat, counting the carbs in the meal, factoring out the fiber and then calculating the amount of insulin she’d need based on her current carb-to-insulin ratio to keep her blood sugar levels in check. In the beginning, I incessantly worried that we would give her too much insulin and send her in to diabetic shock or worse. Over time, we learned how to do it and got pretty good at calculating math in our heads…especially helpful for my then-11-year-old daughter. But as soon as she went on an insulin pump, we stopped having to actually do the math, and now if she takes a “pump break” I find myself having to really think…and it makes me nervous.

Sarah Holliman, Chief Marketing Officer, SIG

Disruptive Changes with 3D Printing

3D Printing

Let’s discuss accretive manufacturing. What? Haven’t heard that term yet? That’s because accretive manufacturing is just a fancier name for 3D printing. You may never hear it referred to as accretive manufacturing, but mark my words…the supply chain industry is about to be disrupted to an unrecognizable extent by it. In 2016, Honda released a single-seat “micro-commuter” vehicle with the body and majority of the panels having been 3D printed. In the meantime, Boeing expects to shave $2 to $3 million off each 787 Dreamliner's manufacturing costs by 2018, thanks in part to 3D-printed titanium. So if Boeing can now 3D print parts to an airplane and auto manufacturers are now 3D printing dashboards—and even entire vehicles—how long do you think it will be until we require almost no inventory because we can 3D print on demand any item we desire?

At home if I break a spatula, I can now 3D print a replacement. Granted, I am only printing with plastic and lack the tools to print an exact replica, but when it only takes an hour to print with specifications that are available for free online at a cost of only 15 cents (plus a little electricity)…isn’t it worth considering?  Even Amazon Prime same day delivery (not available where I live) can’t beat that timeline and price. 

Dawn Tiura, President and CEO, SIG

RPA: A Brave New World

As I sit here at my desk listening to the glorious whirl of robotic process automation taking place at my feet (my Roomba is vacuuming diligently), I think back to SIG's last Global Summit in Amelia Island and how RPA was at the forefront of our discussions.  

Now, of course not everyone is as fond of certain types of automation.  My dogs for instance, who are getting old, a little deaf, a little blind and a little senile, get spooked occasionally by this little disruptive digitalization in their lives.  And my 4 year-old daughter thinks it's cool, (calls it her puppy) but if it gets too loud or in her way, its process quickly becomes terminated prematurely. 

As I write this my Roomba signals with its happy little tune that it has completed cleaning the room and silence almost ensues, except for the faint hum of my newly installed ceiling fan (it’s a truly glorious sleek modern contraption) and it occurs to me that this too, a more common example of process automation, also brings me great joy, convenience and comfort.  At one point both these items were the newest technology and people doubted their need and also questioned how many jobs would be lost at their hands.  Not unfortunately, these days you do not find too many personal fanners (picture Cleopatra being fed grapes and giant palm fronds), but in its stead fan designers, engineers, installers, repair servicemen and salesmen. And whereas only a small minority of the population could afford a professional fanner back in those days, ceiling fans are common place and found in abundance due to technology and manufacturing improvements, making them less expensive and more easily accessible. 

Liz Mantovani, Sourcing Intelligence Manager

Into the wind…

It was recently announced that full tests of driverless cars will take place on UK roads (including motorways) within the next two years. The UK is lagging in this area behind some other countries, especially the USA, where the likes of Google have been taking automated cars out on public highways for several years. However, it's another landmark for technology which looks set to utterly transform human transportation over the next couple of decades.

At the same time, as I walk along my local High Street the windows of employment agencies are plastered with signs calling for drivers - of vans, minibuses, HGVs; indeed, one agency has only these jobs on display. 

Obviously, any transition to automated vehicles (especially the large ones on which the logistics industry relies) will take time (how much time has yet to be seen, and many issues remain to be decided before the shift can fully take place); however, it seems both interesting and unsettling that anyone approaching an employment office wondering which roles might be most in demand would come away with his or her thoughts pointed towards an industry on the verge of radical transformation involving the eventual removal of exactly those roles currently being yelled for.

A couple of weeks ago, I published a blog entitled ‘Automation and the Human Touch’, looking at some of the challenges the automation revolution is set to throw our way regarding future employment opportunities and the education and training of our next generation(s). That blog provoked some very interesting thoughts from readers:

Jamie Liddell, Editor, Outsource

Is There a Huge Hidden Cost to Retail Innovation?

The mini-supermarket at the bottom of my road is closed for a couple of weeks for refurbishments (this may seem like an incredibly mundane topic with which to start a blog, but bear with me). The signs announcing this closure were only put up a couple of days beforehand, and somewhat surprised I asked the cashier - with whom, like many in my neighborhood, I have a friendly relationship – what was behind the chain. The shop is part of a very large national chain, but has a "local" atmosphere unlike, in my experience, most such establishments. She replied that the shop is being redesigned to include several self-serve tills - and was, of course, unwilling or unable to answer when I inquired if that means job losses amongst the current staff.

An elderly man being served next to me then said something which got me thinking: "It's computers, isn't it? Everything will be run by computers soon, and there'll be nobody left to talk to." In this particular instance, at least in the short term, that gentleman was of course being premature - that shop will still have a complement of human staff, and won't be entirely based around self-serve points of sale (POS) - but there as everywhere else in the country, technology is driving vast change in the retail sector, with ramifications that go far beyond that industry and which have the potential to affect the whole fabric of society.

Jamie Liddell, Editor, Outsource

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