What is “Cognitive Automation” (CA) and why is it the essential ingredient that might save the planet from mass starvation, rioting and total economic disaster? In short, CA is the ability for every supply chain stakeholder to see real-time shortfalls and make real-time adjustments.
For example, if a provider is unable to produce its usual supply of milk, another can instantly increase its production – and all other providers can see that information. The same goes for logistics. If trade restrictions, lack of personnel or other factors prevent a transporter from being able to pick up and deliver food, another transporter can know that instantly and assume that piece of business.
Problems in the food supply chain have hit close to home during this pandemic. The Tyson Foods plant in Logansport, which produces 19% of the pork in the U.S., had 900 coronavirus cases at the beginning of May – accounting for 40% of the workforce at that location – and thus needed to close its doors.
Fortunately, the “farm to fork” industry recognized problems in the supply chain pre-pandemic and solutions were in place when 2020 hit with a fury. Innovations such as Internet of Things (IoT) sensors, multi-party collaboration and dynamic route optimization have yielded notable time and cost improvements in food and beverage transportation.
A recent article in The Economist (registration required) eloquently states as follows: “Today, thanks to fleets of delivery lorries filling supermarket shelves, you can binge-eat as you binge-watch. This capitalist miracle reflects not a monolithic plan, but an $8 trillion global supply chain adapting to a new reality, with millions of firms making spontaneous decisions, from switching rice suppliers in Asia to refitting freezers. … [T]he food network is so far passing a severe test.”
The same article cites that the global food system accounts for 10% of world GDP, employs 1.5 billion people and has nearly tripled since 1970 at a time when the world population has doubled to 7.7 billion.
The pandemic has hurt restauranteurs. Last month, McDonald’s earmarked $40 million in aid for franchise owners that are in crisis following the COVID-19 lockdown, but the company’s U.S. President Joe Erlinger advised franchisees that they may still need to sell as revenue is down an estimated 20-40% from last year.
On the other-hand, big retailers have adjusted to the “new normal” by leveraging data and satisfying demand. Amazon’s grocery e-commerce capacity, for example, has risen by 60% as online food shopping has increased by nearly 40% from before the pandemic.
But CA goes beyond simple supply and demand calculations. It wraps in other information such as weather forecasts, changes at ports or in transportation routes and more. The automated process sends back key information to everyone in the chain so that they get a clear picture of where things stand.
Think of it like a football team – your starting quarterback and offensive line are stricken with the flu and are suddenly unavailable, but there are bench players standing by who can take their place. CA can act like the coach, getting everyone into place instantly, with the same playbook, calls and signals to ensure everyone can “play” together successfully.
Food supply and delivery have benefited from CA, which is a teaching moment for other sectors such as energy, telecom, medicine and industries that are reluctant to share data. We don’t know who will be impacted most by the next crisis, but we all need to be prepared to help the “next man up” when the time comes.
