Supply chain disruptions are not a new phenomenon. From the ancient world to today’s global economy, supply chain managers have always had to navigate obstacles like weather, wars and resource shortages. These issues still plague us today, but on a larger scale, with added disruptions like port strikes, trade wars and cyber-attacks.

“We cannot control or predict many supply chain logistics interruption eventualities,” explains Karl-Heinz Legler, director for eastern Canada at Rutherford Global Logistics, which has 15 offices across Canada. “Manufacturers can try to manage inventory and have materials on hand for such times, but of course, this will be limited.”

Today’s supply chains are increasingly vulnerable to economic conditions, along with a range of other risks. These challenges have driven companies to seek out technological solutions.

“I think a lot of supply chain challenges that happened in the past year, with the market being really up and down, has played a role in people’s motivation to invest in technology,” says Mike Mohseni, founder of AutoMetrics Manufacturing Technologies. “[It’s] really put supply chain and advanced manufacturing technologies and innovations back on the map.”

Emerging tech trends

Drones are emerging as a potentially transformative technology in supply chain management, offering advanced solutions that enhance operational efficiency, accelerate delivery times and improve logistical oversight. As far back as 2019, Airbus started trials of shore-to-ship cargo transfer in Singapore using large models as an alternate way to load, unload and deliver smaller payloads over short distances.

Additionally, drone cameras now provide real-time inspection and recorded footage of activities at ports, airports and railways, helping improve efficiencies and detect anything out of the norm. This data can also help identify times of day and other factors that contribute to disruptions, enabling proactive solutions to be put in place. Ships can also use drones to help prevent navigational errors or accidents by providing enhanced situational awareness in challenging weather.

Blockchain, a digital record-keeping technology, is another potential game-changer for supply chain resilience and transparency, with early initiatives showing that it can speed up product delivery, cut costs, enhance traceability and simplify financing. But Legler says adoption is slower than anticipated because of slow progress in connecting supply chain partners. While there are already reliable systems in place for tracking cargo, the seamless logistics data flow that will eventually be provided by blockchain and AI will be very useful in both normal and disruption scenarios.

AI is increasingly being used to analyze supply chain data, but for individual manufacturers, challenges remain. For instance, according to the Harvard Business Review, business planners often spend significant time interpreting AI recommendations and updating supply-chain models to match changing conditions. To address these issues, they typically rely on data science teams or technology providers for support, which can be a lengthy process.

However, advances in large language model technology (LLMs) are helping — this is the capacity of some of today’s AI systems to understand questions, access the pertinent data, analyze it and provide a response in plain language. LLMs have the potential to expedite decision-making processes and cut down the time required to produce insights and updates from days or weeks to mere minutes. They can also help enable planners to swiftly analyze data, respond to hypothetical scenarios and modify plans based on real-time conditions.

But, as Matt Weller, Senior Advisor of Supply Chain/Productivity at Excellence in Manufacturing Consortium (EMC), notes, AI will require more — not fewer — humans to manage it.

“I think AI will drive a new supply chain skill set that is both practical and technical simultaneously, and this will displace more traditional skill sets at large firms,” he says. “Also, a larger consideration will be availability. AI requires tremendous energy and processing power, and specialized chips which are scarce and not easily ramped up or duplicated.”

Dealing with data

In addition, with AI’s power being its ability to search through and analyze large amounts of data, its usefulness is directly proportional to how much data it’s given. That data must be very current; otherwise, any conclusions or recommendations provided are useless in that stale data will cause more problems than it solves.

Drew Simons, principal advisor at Roxville Technology in Toronto Ont., explains:

“Our clients, who are freight forwarders for manufacturers, want to book transportation of freight and make sure their customers get what they need on time,” he says. “They want to prevent disruption by preventing delays for their customers. So, we advise them on how to determine the best route to make sure a shipment arrives on time. In order for successful use of AI in this work, we need large amounts of good, up-to-date data from transportation companies, from ports and airports, from all parts of the supply chain – and some of that is not yet publicly available.”

But, according to Simons, progress in data sharing is being made. “There are initiatives at the port level and Transport Canada is also working on this,” he says, adding that Transport Canada contacted CIFFA (formerly the Canadian International Freight Forwarders Association), which then invited members of their team, along with others, to participate in a panel discussion last fall. (Both Simons and Legler sit on the CIFFA Technology Committee and Legler is a CIFFA board member. The Committee has also produced a white paper Unlocking The Potential: An Introduction to Artificial Intelligence.)

“[At the panel], we discussed what data is required, how it can be structured, so that we can use that data to predict when a shipment will actually arrive through different routes,” says Simons. “It’s very exciting to see that there’s a lot of focus on preventing disruption. As data becomes more and more available, we’ll be able to achieve a higher level of reliance on when shipments will actually arrive.”

Shortening the chain

An important way to ensure better supply chain resilience is to create a diversified supply chain across multiple markets, regions and countries, with an emphasis on securing domestic suppliers where possible. Scott McNeil-Smith, VP of Manufacturing Sector Performance at EMC, explains that this minimizes risks associated with a variety of disruptions that may crop up in Canada or beyond:

“Whether it’s weather, health, politics or a domestic issue such as a postal or port strike, manufacturers need to look beyond their sector to develop multiple supplier options who can readily provide the component, ingredient or system required.”

Achieving a shorter, mostly domestic supply chain on a large scale, however, requires excellent visibility of the national manufacturing landscape. That is, companies need to know what other firms can do in terms of their capabilities, volumes and more. EMC has been leading this charge in Canada, connecting industries across its national network with an increased focus on supply chain resilience and productivity. This builds on past EMC success with the creation of ‘evergreen manufacturing intelligence,’ for example, helping industry source skilled talent, and the development of Supplier Manufacturing Innovation Networks as far back as ten years ago.

McNeil-Smith says that EMC regularly helps manufacturers address needs, whether due to internal issues or lost suppliers, through support initiatives like “Member Needs Help.” They are also developing a national database to allow companies to directly connect with solutions and suppliers. EMC is investing in this effort and seeking partners to help expand it, while also updating member capabilities and improving platform accessibility.

McNeil-Smith adds that EMC’s approach could dovetail nicely with other supply chain platforms throughout the world.

“By continuously connecting manufacturers and suppliers,” he says, “highlighting not only what they are currently producing but also what capabilities and capacity they have, this can provide more opportunities for domestic supply as well as opportunities for Canadian producers to access markets and build customers internationally.”

This article was originally published in the Spring 2025 issue of Plant.