A host of new technologies are set to transform fragile legacy Brazilian supply chains into a robust modern supply network, ISG Provider Lens report says.
A growing awareness of key vulnerabilities in global supply chains that first became apparent during the COVID pandemic and continue to hamper some Brazilian enterprises is driving a fundamental transformation in the way these companies operate, according to a new research report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens Supply Chain Services report for Brazil finds that although the pandemic has been declared over significant supply chain challenges remain, exacerbated by current macroeconomic conditions and geopolitical tensions. The appropriate application of a host of new digital technologies, including IoT, Blockchain, 3D printers and especially Artificial Intelligence, will make it possible to overcome them, the ISG report says.
“Digital Transformation has become a new imperative,” said Bob Krohn, Partner and Industry Lead at Manufacturing, ISG. “Information Technology companies specializing in supply chain in Brazil have played a crucial role in improving supply chain operations throughout various industries.”
Providers offer solutions and services that enable the automation, optimization and integration of processes, boosting operational efficiency, visibility, and more assertive strategic decision-making, the ISG report says. After developing these solutions, providers are also taking on responsibility for maintaining, improving and expanding their use across the business, ISG says.
According to the ISG report, dramatic improvements in supply chain technology have led to a corresponding increase in competitiveness. There is a growing number of digitally native companies that form partnerships with enterprise customers to develop innovative solutions that are then made available to other companies and sectors of the economy.
Of all the available new technologies, Artificial Intelligence will have the greatest impact on the supply chain, the ISG report says. Advancements in AI, including large language models, will allow Brazilian enterprises to move toward solutions that address long supply chains, volatility, and an increasing complexity of variables, the report says. Large amounts of internal and external data, structured and unstructured, stored in data lakes, mined and analyzed, will generate new correlations, insights and decision models.
“The concept of humans and machines working in symbiosis is becoming a reality,” said Jan Erik Aase, Partner and Global Leader at ISG Provider Lens Research. “The potential applications of AI in the supply chain are enormous.”
The report also examines how Brazilian retail companies are using Blockchain technology to aid food traceability and addresses the role ESG plays in supply chains in Brazil.