How are AI and automation changing the demand for skills in procurement and supply chain?

During the last decade, we have seen a continued increase of AI within manufacturing processes but they are now also creeping into the procurement and supply function. We are slowly headed towards a future where AI and automation are fundamental in the planning, forecasting, scheduling and eventually the purchasing of raw materials and components that are required in the manufacturing process.

Once this technology is implemented in the sector, some of the benefits we might see include reduced costs throughout the supply chain, faster communications across the globe and more efficient decision making. The applications of this technology in procurement and supply chain, while not fully realised as of yet, have the potential to completely revolutionise processes and procedures. But what has this meant for the sector so far and how might jobs evolve looking forward?

Evolving demands of a role in procurement and supply chain

While we have not yet seen the introduction of new roles within the procurement and supply chain specialism as a result of the rising use of AI and automation, these new technologies have meant that the demand for certain skills and experiences have changed. Employers looking to hire are requiring a greater level of systems knowledge and automation. Modern ERP systems are increasingly being deployed as real end-to-end solutions, joining automated planning and forecasting modules with sales and financial data to more accurately plan and operate shop floor production. 
Knowledge of supply chain IT systems has become more important. For many supply chains that utilise multi-location/country and time zone production, for example, a multi-tiered supply chain where manufacturing value is added and the component/subassembly is then passed to the next manufacturing tier, the ability and experience to manage data securely (sensitive product data via international boundaries using cloud-based systems) is becoming increasingly important.   
Recent PageGroup research, in partnership with Foresight Factory, found that upskilling will be of utmost importance for employees to ensure they remain up to speed and employable as the world rapidly adopts more and more AI and automated processes. However, while jobs will change, and we will undoubtedly rely more on new technology, the most valuable asset to any business will continue to be their people. 
In terms of what skills businesses will require in the longer term, Nicola Strong, occupational psychologist and MD of Strong Enterprises had this to say:
“Recently, at a conference on applied robotics, I asked the panel of 10 academics (all leading courses in engineering and robotics) what skills they hope their students would attain with their degrees.
"They cited: inquisitiveness, creativity, curiosity, flexibility, human values, practicality, proactivity, drive, self-awareness and passion for life. It’s a challenging list to measure, but none the less would seem to be aligned to what many employers are looking for now and in the future.”
As AI and automation are further integrated into other business areas, the role they playinn procurement and supply chain will continue to evolve. Of course, new skills and training will be required as this occurs but these new technologies will reshape the way we work, allowing us to run smoother more efficient processes and enable our people to be more involved with problem-solving and decision making, as well as allow for more time to be spent building strong relationships with suppliers. 
Based on conversations we have with employers day in and day out, we have pulled together the top five skills that are shaping procurement and supply chain in 2018. Our consultants are experts in their sector and with access to a global network of talent, are able to provide a boutique service with the support of a national database.
If you would like to discuss this topic further or to see how we can help with your recruitment processes contact us today. Alternatively, submit a job spec and one of our specialist consultants from your local market will be in touch.
Rob Bales
Operating Director, Michael Page
T: +44 121 230 9381