Innovating in the Transportation Systems Sector
Sam Houston State University’s Institute for Homeland Security
The Institute for Homeland Security (“IHS”) at Sam Houston State University fosters collaboration between public and private sectors to enhance Texas' critical infrastructure resilience. This is achieved through strategic partnerships, applied research, and education & training. Our focus is to offer transformative solutions that add value to organizations.
Recently, IHS published two papers highlighting the evolving landscape of supply chain management. The first, “Adapting to the New Dynamics of Digital Supply Chains” by Willow Liu Yang, Pamela J. Zelbst, Milo D. Berg, and Kenneth W. Green, focuses on the impact of Industry 4.0 technologies on supply chain efficiency, security, and skill requirements. It emphasizes the widespread adoption of technologies like artificial intelligence (“AI”), the internet of things (“IoT”), blockchain, robotics, and machine vision and their transformative effect on manufacturing and logistics.
In a survey conducted for the research project, 97% of manufacturing organizations had implemented at least one of these technologies, and 76% had adopted all five demonstrating widespread adoption of emerging technologies as an increasingly mainstream practice.
- Machine Vision: Used primarily for defect detection from raw materials inspection to intermediate component evaluation, and ultimately, finished product examination.
- IIoT: Serves as a digital nerve center for real-time monitoring and data exchange. Manufacturers use it to accelerate new product introductions, dynamically respond to changing demand, and for real-time optimization.
- AI: The analytical engine of supply chains, enabling advanced supply chain oversight, real-time responses to production and logistical variances, and preemptive strategies. It’s used for overseeing supplier production, tracking logistics, and mitigating risks related to supplier business considerations.
- Blockchain: Enhances trust and transparency with secure and immutable records. The survey shows manufacturers use blockchain to securely record transaction data, reduce transaction time and cost, and enhance security and privacy.
- Robotics: Crucial for automating repetitive tasks and improving precision in manufacturing. Its application ranges from unloading to delivery of finished goods.
The study found statistically significant interconnections among the five key Industry 4.0 technologies and their collective impact on the resilience of firms, enhancing their ability to anticipate, navigate, and recover from various threats. While Industry 4.0 technologies bolster security, they also introduce new vulnerabilities that must be carefully managed. Examples include reliance on data, the potential for algorithmic errors, and robotic malfunctions.
Even with advancements, the human element remains critical. Comprehensive training is needed to equip employees with both foundational and technical skills to leverage these new technologies. The digital transformation requires a workforce with augmented skills encompassing core supply chain skills, technical and digital proficiencies, and soft skills including adaptability. Organizations must be proactive in upskilling the workforce, establish robust and responsive IT infrastructure, foster a culture of agility and learning, and focus on sustainability and ethical considerations.
The second article, “Supply Chain Mapping for Emergency Management Decision Making” by Mark Scott, demonstrates that supply chain disruptions are an increasing problem for public sector emergency managers. Communities rely on these systems, which are primarily privately owned and operated for essential goods and services for daily life and survival. There is a growing awareness of the need for active surveillance of supply chains as they operate in real time to facilitate risk analysis and early detection of problems. Scott argues that supply chain mapping is the key to gaining this visibility.
The importance of building stronger public-private partnerships and learning from private sector mapping practices is stressed, and supply chain shocks are classified into four categories:
- Unanticipated catastrophes
- Foreseeable catastrophes
- Unanticipated disruptions
- Foreseeable disruptions
This classification highlights the range of potential threats for which emergency managers must prepare. Catastrophes are historically remarkable, large-scale, and can lead to trillions of dollars in losses. Disruptions, while serious and potentially costly, are localized and present a smaller scale interruption than catastrophes.
The paper emphasizes the need for supply chain visibility to understand how supply chains operate, as mapping the supply chain is the key to gaining this visibility into the system. Mapping focuses on:
- Supply nodes, where commodities originate
- Demand nodes, where consumers go to get those commodities
- Supply-demand links, how commodities get from supply nodes to demand nodes
Supply chains also have upstream, midstream and downstream components, while specific map elements include suppliers, processors, distribution centers, transportation, retailers, and consumers.
Mapping includes the examination of factors which impact resilience such as geographic distance, relative diversity of supply, and concentration of production capabilities. Managers are advised to identify the primary crucial suppliers, the supply chain nodes within the scope of the review, and the ultimate destinations of goods. They should also identify infrastructure systems that provide critical support and overlay these with key threats and hazards.
Mapping enables managers to assess supply chain risks, strengthen preparedness, improve timely response to emergencies, enhance engagement with private sector owners and operators, and promote inter-jurisdictional coordination. Mapping is challenged by lack of data, the subjectivity and scope of the mapping process, the dynamic nature of supply chains, and the reluctance to share information from private sector entities emphasizing the importance of public-private partnerships. The paper highlights that companies with more visibility across their supply chains perform better during periods of disruption. It also discusses key concepts including structural visibility, knowing what the supply chain looks like, and dynamic visibility, knowing what's happening in real time.
Public sector officials and corporate emergency managers are urged to prioritize mapping the supply chains for their lifeline commodities, build meaningful public-private partnerships, and use mapping to conduct stress tests.
These sponsored research papers collectively paint a picture of a rapidly evolving supply chain landscape driven by technological innovation and increasing vulnerabilities. Success in this environment requires a holistic approach that integrates digital technologies strategically, fosters collaboration, and prioritizes both security and resilience. These papers and the entire library of topics can be accessed here.
Grant Threatt
Transportation Systems Program Manager
gat019@shsu.edu
Sam Houston State University
Institute for Homeland Security
A mechanical engineer, Grant Threatt earned his undergraduate degree from Auburn University and has decades of experience in both the aerospace and oilfield industries. He earned his MBA from the University of Texas at Dallas and has also served in the Texas State Guard, rising to a leadership role in the Medical Brigade out of Galveston County.