Supply chain orchestration allows companies to more efficiently address challenges in logistics processes. However, while automation and new technologies optimize operations, they do not replace the role of people.

Juan Arévalo, Head of Digital Supply Network at  Grupo Elektra , explained that using artificial intelligence (AI) requires organizational intelligence, while automation is about enabling people to do their jobs well and “to do more demanding tasks. Digital transformation is never digital, but human .”

During an event held by #SoyLogístico Association , it was recalled that the company faced the increase in operations and clients with Baz Entregas without having a budget that would allow them to cope with the situation.

“We found that things started to pick up and orders began coming in from all over, and we realized that we didn’t have the experience to handle it; we had more incidents and problems with more work, with inefficient processes. Faced with that reality, we had to make a decision: to unleash people’s capacity to do more with less; a company never transforms when they work more, but when they think better,” he commented.

However, he explained that before using technology, they first redesigned their way of working , then chose the type of tool they would use to automate their logistics to carry them out correctly and free up people’s talent to be used in other activities, and then chose the appropriate software .

“Today, we look for patterns to understand. Before, we reacted all the time; today, we predict what will happen and anticipate it. This completely changes the organization. Today, hundreds of decisions are made every day throughout the supply chain that don’t depend on people, but happen automatically. However, automation doesn’t replace people, but rather the work those people should never have done,” he emphasized.

He considered that it is necessary to have a correct business plan in order to choose some type of technology that allows them to improve logistics processes.

For his part, Pablo Suzuri, Operations and Logistics Manager at Natura , considered that the great challenge for companies will be to start using orchestrated logistics , but also for people to know how to manage it in order to have better solutions focused on the end customer.

“Let’s use artificial intelligence, but it’s very important to know what the expected outcome is. AI has the capacity to process scenarios and mathematical models, and what it would leave for people is the strategic vision and critical thinking that accumulates with experience. AI can say this is the best route, but you know from experience that it doesn’t make sense,” he explained.

Therefore, he commented that there should be limits on the use of technology , using it to create scenarios, but the decision will be made by a person.

Meanwhile, Rolando Barajas, Regional Sales Manager of Growth LATAM BMC , indicated that in the supply chain there are various people involved for each process, similar to a symphony orchestra.

“There are different trends for orchestrating business service operations, and AI is part of that, but there’s also a need to leverage data. The reality is that what was previously managed by people is now also being done by AI,” he explained.

He argued that this tool works well, as long as it has the right data, “if the input is wrong, we already know what will happen.”

Comment and follow us on LinkedIn:  @Evangelina del Toro  /  @GrupoT21

El cargo Logistics orchestration: innovation without replacing human talent apareció primero en T21.