Guest: Dwight Klappich of Gartner on the hype cycle for warehouse robots and drones; Global trends in forklift sales; Common mistakes made in reorganizing supply chain teams.
Dec 13, 2024
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Dwight Klappich, a research vice president and Gartner Fellow specializing in supply chain analysis, joins to discuss critical trends in logistics. He explains the 'hype cycle' of warehouse robots and drones, helping listeners determine when to adopt these technologies. Klappich highlights disappointing global forklift sales forecasts and the factors behind the stagnation. He also sheds light on common mistakes leaders make in reorganizing supply chains, advocating for tailored solutions that prioritize balance, strength, and speed.
The Gartner hype cycle provides a framework for businesses to determine the right timing for adopting automation technologies based on their risk appetite.
Recent declines in global forklift sales highlight sector-specific challenges, while a notable shift towards lithium-ion technology indicates potential future growth.
Deep dives
Understanding the Gartner Hype Cycle
The Gartner hype cycle is a tool that illustrates the progression of emerging technologies from initial excitement to eventual maturity. It helps organizations evaluate when to invest in new technologies based on their risk tolerance. For instance, companies that are risk-averse should avoid investing in early-stage technologies that may not deliver immediate returns, while more adventurous firms can explore those innovations earlier. This insight is critical for supply chain management, guiding decisions on technology investments based on the company’s strategic goals and risk appetite.
Trends and Challenges in Forklift Sales
Recent reports indicate a decline in global forklift sales, attributed to stagnation in the European economy and struggles in key sectors like automotive and logistics. Interact Analysis has revised their forecast for 2024 to a mere three-tenths of a percent growth, highlighting the challenges of absorbed backlogs from the pandemic. Despite the current downturn, there is optimism for future growth driven by a shift towards automation and cleaner emissions technologies. The transition to lithium-ion powered forklifts is notable, with a growth rate exceeding 10%, while demand for internal combustion engines continues to decline.
Common Pitfalls in Supply Chain Reorganization
Supply chain leaders are advised to avoid several critical mistakes when reorganizing their operations to enhance efficiency. Key pitfalls include opting for either a centralized or decentralized model instead of a balanced approach tailored to specific organizational needs. Additionally, drastic headcount reductions can weaken long-term capabilities, highlighting the importance of strategic staffing for future demands. Finally, adopting a copy-and-paste approach from other companies overlooks unique business characteristics, which must be considered to create an effective supply chain structure.
Our guest on this week's episode is Dwight Klappich, research vice president and Gartner Fellow at consultancy Gartner, Inc. There is tremendous interest in the growth of robotics and drone applications now being deployed in distribution operations. Is the hype and attention they have received warranted? Klappich defines the "hype cycle" and how it can be a useful tool for determining when is the right time to adopt new automation technologies.
A new report out this week reveals that global forklift sales are sputtering. Lift truck sales are even falling short of their initial forecasts for 2024, according to Interact Analysis, a British consulting firm. That group has now revised their forecast for global forklift sales growth for 2024 down to just 0.3%, which is basically flat. We explain why sales have not met expectations, which sectors are most affected, and prospects for the future.
Many logistics and supply chain leaders are focused on reorganizing their supply chains these days—but as they do so, they should be careful to avoid common pitfalls that can derail their efforts. That’s according to recent research from Gartner that identifies critical organizational design mistakes that will prevent supply chain leaders from delivering on business goals. The research revealed that the most successful projects radically redesign supply chain structure based on distinct organizational needs, while prioritizing balance, strength, and speed as key business objectives.
Supply Chain Xchange also offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. A series of ten episodes is now available on the "State of Logistics." The episodes provide in-depth looks into the current states of key transportation modes, such as trucking, rail, air, and ocean. It also looks at inventory management, 3PLs and more. All ten episodes are available to stream now. Go to your favorite podcast platform to subscribe and to listen to past and future episodes. The podcast is also available at www.thescxchange.com.