Interview with Guy Courtin from Tecsys

1. The future of warehouse management is autonomous fulfillment. But we are all aware that AI is not a cure-all. There must be a reprioritizing of work between humans and intelligent systems. To ensure harmony in warehouse orchestration, how do you discern where the ‘human-in-the-loop” processes still remain a strategic advantage- to help avoid any setbacks from the get-go?

Autonomous fulfillment within reason…we will look to automate the processes that are repetitive, tedious, and dangerous.

The human in the loop will continue to be important in processes that provide differentiation in the fulfillment process. We all realize that one of the biggest challenges facing supply chains and specifically the warehouse is labor – finding, training, and retaining labor – remains one of the biggest hurdles.

The more tasks within the warehouse that can be automated, reducing the strain on labor, and freeing up the labor you do have to complete higher value tasks the better. But I do not believe we will gravitate to fully automated fulfillment.

2. Even with the rapid adoption of digital capabilities, supply chain management is not without its hurdles. And the one afflicting the entire industry is the gap between insight and ground-level performance. What do you think is an unrealized inflection point that can help leaders navigate this gap?

The ability to translate what is being observed digitally and how it can translate into relevant actions.

Often there is a disconnect, supply chains believe that if they become more digital that their decision making is solved. What they fail to realize is the importance of ensuring that the digitization provides relevant and timely insights, that is actionable. That remains the key – can I use the insights to take timely decisions.

I remember meeting with a retailer who had a “great” digital capability, but the insights from the digital insights would sometime take up to a week to get to the decision makers, rendering the digitally created information useless.

3. Digital investments have increased visibility across logistic networks- and disruptions. Global supply chains must still deal with erratic sourcing strategies and tariff volatility. Is it because AI’s use case in supply chain enterprise continues to remain short-sighted?

It is not about being short sighted – it really goes deeper into what is at the core of being more digital – data.

While the growing investment in digitization has created an influx of data, and therefore more visibility. It has also placed greater strain on your data infrastructure. How clean, accessible, and actionable is that date? The fundamental challenge remains – what is your data quality and hygiene?

For supply chains trying to improve their sourcing they must continue to strive to ensure their data quality. Only then can they truly take advantage of modern digital technologies such as AI.

4. You’ve mentioned that how an organization approaches digital capabilities determines the success and failure of their methodology- and that people remain the key. What are some of the basics, according to your experience, that leaders should outline before jumping into building an alliance ecosystem- one that moves beyond a ‘bolt-on’ model?

Digital does not mean no more people.

On the contrary, more digital means rethinking how you leverage your labor, not simply eliminating labor. When it comes to leaning on digital to create a greater ecosystem – how do you handle change management? Which focused on how your existing personnel can embrace what digital will bring. Ensuring processes are improved (are the people responsible for this open to this potential change), are you allowing for new processes and use cases to be explored and implemented? This challenge gets amplified when you are thinking about the ecosystem outside your four walls – the network that makes up your supply chain.

5. Tecsys is a category leader- with a strong footing in 3PL and complex distribution, where custom workflows are the norm. With Tecsys leading several highly-regulated verticals, what does instilling trust truly mean- especially when SIs and 3PLs fear alienating their audience from moving away from legacy custom code?

It is a cliché – trust is earned.

Sometimes it is easier with regards to regulated verticals, you are mandated to provide deep information. For example, the pharmaceutical space with DSCSA. You have no choice but to provide the appropriate and timely data. It can be more challenging in industries that do not have as much oversight.

With these industries, trust is truly earned. That requires leaning on the data that your systems consume and create. It also entails being present for your customers. This involves people.

The reality is your systems will not perform perfectly all the time, but how do you react when problems arise. Do you have the appropriate operating procedures and the properly trained personnel tackle these issues. You will not avoid them, how you handle them will determine the good will and trust you develop within your network.

6. Tecsys holds deep dominance in healthcare supply chains and hospital networks. And in such a scenario, a one-size-fits-all alliance strategy is a recipe for failure. Do you believe outlining a static playbook helps navigate the disparate asks of partnering within a clinical environment versus a high-volume retail 3PL ecosystem- in the long term?

I believe there must be a basic playbook. But these is no “one size” fits all in supply chain. Start with what are key tenants within the industry’s supply chain.

But then be flexible to work with individual companies to understand the nuances of their supply chains. What are the use cases and plays relevant each company and their supply chain. This requires a solid team, leveraging data, and digital tools to best craft a relevant strategy.

7. We’re observing a transition in the industry narrative with businesses trying to establish themselves as the standard for ‘autonomous trust’ across healthcare and retail- not just supply chain visibility. But with geopolitical volatility and regionalization becoming the new normal for the global supply chain, should leaders change their approach to success from here onwards?

The notion of “autonomous trust” is just a buzz word. To quote Ronald Reagan – trust but verify.

Companies and supply chains that hand over their validations of processes to digital machines, are taking an unnecessary and dangerous risk.

As mentioned above, data remains the fundamental building block for digital strategy, for more autonomy and for greater usage of digital tools such as AI. Can we increase usage of digital tools to provide some levels of autonomy? Yes. But we always will need a human in the loop. There will always need to be a verification process, dependent on a human to do so.

Today’s geopolitical environment is a reminder of how quickly the environment our supply chains must operate within. Lean on your digital tools to autonomously manage parts of your supply chain but always have the discipline of having a human in the loop. Trust but verify.