supplier intelligence not being better to crisis-proof supply chains . Without knowing who is doing what and where further into the network , organizations have less time to mitigate potential disruptions . Digital capabilities can enable real-time visibility , dynamic planning and provenance .
The pandemic also highlighted supply chains and organizations ’ dependence on brave frontline workers and the importance of preparing them to operate where and when needed . It also highlighted the difficulty of finding workers to fill current manufacturing and supply chain positions . Such constraints should persist in the coming years . Digitization makes it possible to shift people from dangerous or repetitive tasks to more challenging and rewarding functions . During 2020 , industrial users , for instance , increased investments in robots by nearly 30 %.
Almost every transportation mode has also faced and imposed constraints . For instance , Los Angeles and Long Beach ports , responsible for about 40 % of the inflow of sea cargo into the country , faced lines of over 100 ships waiting to dock . Transatlantic air cargo capacity at the onset of the pandemic was down over 50 % compared to the previous year . Organizations can leverage digital capabilities to gain visibility into available logistics capacity . They can make real-time transportation mode decisions based on costs , route and volume at more sophisticated levels , as Amazon is increasingly doing .
Of course , investing in supply chain and organizational digitization can help mitigate various risks while also creating new ones . As organizations build digital capabilities and
employ a robotic-assisted workforce , Internet of Things and wearables , the security risks grow . All sectors face a surge in ransomware attacks . By some estimates , cybercrime will cost the world an alarming $ 10.5 trillion annually by 2025 .
Experimenting with digital technology and building capabilities requires an innovation and entrepreneurial mindset . Larger companies can often more readily innovate and create digital capabilities . However , due to the interconnected nature of supply networks , it is to their benefit to also invest in developing their smaller suppliers ’ technological capabilities .
Many organizations and initiatives in the Mountain State form a robust innovation ecosystem of resources that organizations can tap . They include many resources at WVU , including the John Chambers College of Business and Economics ’ expertise in analytics and cybersecurity , Wehrle Global Supply Chain Lab , Morris L . Hayhurst LaunchLab , Dr . Thorsten Wuest ’ s lab and resources at the Benjamin M . Statler College of Engineering and Mineral Resources , as well as programs at Marshall University , the Robert C . Byrd Institute and others .
Global supply networks are increasingly vulnerable to disruption . Digital capabilities can help companies understand , diversify , reconfigure and make their supply chains and operations more resilient . Moreover , those with more mature digital capabilities are coping better with the global crisis . Digital innovation is not about technology or replacing human labor , however . Instead , it is about creating capabilities to augment human potential and enable superior value creation . •
UniCare Health Plan of West Virginia , Inc . serves more than 195,000 Medicaid and CHIP beneficiaries living in West Virginia .
For more information about UniCare , visit unicare . com / wv .
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