In our ever-evolving world, the role of technology in improving supply chain performance often takes a back seat to the losses we perceive in the process. However, it is crucial to understand the gains we stand to achieve through technological advancements. In the long run, technology not only adds jobs but also enhances our standard of living and fosters economic growth.
One of the most iconic examples of technology revolutionizing supply chains is the introduction of assembly lines in 1913 by Henry Ford. In 1908, Ford employed 450 people, and by 1925, this number had skyrocketed to 155,552. This incredible increase in employment demonstrates how technology can boost job opportunities both within a company and throughout the entire supply chain.
But the impact of technology extends beyond the automotive industry. It ripples through other sectors, like hospitality, enabling people to travel to hotels more conveniently. Likewise, the airline industry witnessed a drastic shift, reducing the crew members required for each flight from five to just two. This not only freed up capacity for paying customers but also led to lower prices, making air travel more accessible to a broader audience.
The year 2020 marked another milestone as 700 million people worldwide found employment in travel and tourism, showcasing the far-reaching effects of technological advancements. Reduced labor requirements, declining prices, increased production volumes, and ongoing innovations in scale have played pivotal roles in these achievements.
Moreover, technology has not only created jobs but also transformed the nature of work itself. With the need for advanced machinery, electronics, digital devices, and sophisticated systems, more people are being hired to design, manage, and optimize these critical components. This transition is evident in the statistics: from 1910 to 2000, the percentage of professional and technical workers increased from 5% to 25%, while the percentage of managers grew from 6% to 14%.
In conclusion, the impact of technology on supply chains and employment is profound and far-reaching. It fosters growth, enhances efficiency, and opens doors to a myriad of employment opportunities across various industries. Instead of dwelling on what may seem lost, we should celebrate the incredible gains that technology brings to our lives, as it plays a pivotal role in shaping our world and driving us toward a more prosperous future.
Reference: "The Magic Conveyor Belt: Supply Chains, A.I., and the Future of Work" by Yossi Sheffi.