Luiz Bouças shares his insights with us ahead of Internet of Supply Chain DE 2019.

What are the obstacles faced by companies looking to implement SCM 4.0?

There are many obstacles on the SCM 4.0 environment ranging from which technology to pick to how to define ROI on that space, but before getting to that discussion, I would like call out two issues which I believe need to be addressed before moving to advanced stages on the SCM 4.0.

  1. Data capturing and management:
    1. There is a vast amount of data that are still handled manually and not checked or updated often. I dare to say that some of the data/parameters that can be find on systems were upload years ago and never reviewed.
    2. Because the data is managed manually, translating raw and scattered data into real actionable insights seems an impossible mission. Add complexity, lack of talent and the scenario just gets worst.
  2. Integrated processes and optimization:
    1. Even though companies recognize the importance of having an integrated planning process in place, not necessarily all the information is leveraged to achieve the best planning outcome.
    2. Take for instance the statistical forecast process. A tool provides an unbiased recommendation that lately gets overwritten by commercial teams and planners.

How can organizations justify the costs of IoT implementation/digital transformation?

There is no discussion against facts.

“From my perspective the best way to justify IoT implementation/digital transformation is through demonstrating some real cases.”

Once the results are real tangible, approvals shouldn’t be the problem. I must confess that there is a component related to long term vision that also comes into play.

With AI having the potential to truly transform and optimize the supply chain, what are the key challenges you believe will stand in the way of the AI reaching its full potential?

My interpretation for AI is very simple. It is statistical analysis of previous data transformed into future recommendations. If the data is corrupted or not properly cleansed, the outcome will not be good. Having the data management capabilities in place is a must have to fully leverage AI.

What can solution providers and consultants do to help companies overcome these barriers?

Both have a crucial role on helping organizations to navigate this “new environment”, from designing the right supply chain, ripping off the benefits of technology, but also bringing that to life through piloting and experimenting.

What are you currently working on or are most excited about?

I’m currently working with start-ups and scale ups to bring some innovation to the supply chain environment, which is very exciting for an entrepreneur at heart.

“It is amazing to see how small companies are disrupting the way we manage supply chain through the use of technology.”

Being in contact with these companies is a truly source of inspiration.


You can hear from Luiz at Internet of Supply Chain DE 2019, as he looks at how to overcome internal barriers to IoT adoption. Get a 20% discount off your pass with code LUIZ20.

Secure your pass here today and join us in Berlin on the 9-10 October.