Impact of COVID-19 on Manufacturing and Supply Networks — The Case for AI-Inspired Digital Transformation

Abstract

Manufacturing and supply networks worldwide are undergoing digital transformation under the umbrella of Smart Manufacturing and Industry 4.0. Just as companies embrace digital technologies and leverage the opportunities presented by Artificial Intelligence (AI) forming digital supply networks, the world has been hammered by one of the biggest interruptions in the modern history—the COVID-19 pandemic. Many businesses are facing existential threats and scrambling to survive in the short term. Conceivably, some are inclined to scrap AI initiatives and projects as non-essential in these horrific times, as evidenced by canceled and delayed consulting contracts with the projected loss of US$30 billion in 2020 alone. In this article, we make the case that digital technology and AI can mitigate the adversities and strengthen the resiliency and preparedness of manufacturing and supply networks in the future.