How Artificial Intelligence Levels the Playing Field for Automation Distributors
Monday, September 23, 2024
by: Alok Pradhan and Haochen Wei, Turn Co-Founders

Section: Press Releases




AHTD members have been on the front lines of manufacturing innovation and have made major breakthroughs. Yet, for at least three decades, automation distributors haven't seen a true technology revolution - one as impactful as the introduction of electronics in manufacturing and the proliferation of the programmable controller.

We define a revolution as a movement underpinned by innovations so fundamental that they serve as a platform for new generations of products. For example, the fifth generation of PLC technology is built on that first electronic revolution and the sixth continues this evolution.

To illustrate the point, let’s take a short look at previous revolutions.

First Industrial Revolution: Characterized by the use of waterpower to mechanize production around the 1700s. The manufacturing centers of the day were all located in areas where waterpower could be harnessed.

Second Industrial Revolution: An era marked by the introduction of electric power, leading to mass production and further industrialization during the late 1800s. Machinery could start, stop, and sometimes change speed independent of the main system.

Third Industrial Revolution: Focused on electronics and information technology, manufacturers discovered opportunities to automate production in the 1960s. Industries grew more productive through telecom and computers. In many ways, we are still in the final days of this revolution as we continue to generate and share increasing amounts of data.

Fourth Industrial Revolution: Digital and hardware advancements created powerful cyber-physical systems unleashed by sensor proliferation (internet of things) and big data. These rapidly enhanced manufacturing floors with cloud processing power. Leapfrogging improvements in machine learning applications lead to new opportunities that were previously unexplored.

We are facing the dawn of a new Revolution.

Artificial Intelligence (AI) is poised to unleash thousands of new products which will enhance the products and solutions AHTD members sell, but AI has the massive potential to also improve and enhance their business operations . Launched in November 2022, ChatGPT is the most talked about AI platform. At nearly two years old, many industries have already discovered it to be robust enough to work alongside employees and free them from brain-numbing menial tasks. A 2018 article in Harvard Business Review states, “In our research involving 1,500 companies, we found that firms achieve the most significant performance improvements when humans and machines work together.” The information in the article shows that big organizations were using AI long before it became a major focus for distributors and certainly before it was affordable for small and medium-sized wholesale distributors.

As we reflect on past technical revolutions, the companies that capitalized on early opportunities gained competitive advantages in their markets. Mega-distributors view AI not only as a tool to enhance their complex administrative tasks but also to counterbalance the product and application strengths of their smaller, nimbler competitors.

We at Turn are working to harness the power of AI into a computer system (ERP) that provides smaller distributors with the ability to level the playing field with their mega-distributor rivals. Here are some examples of what we are working on (and can disclose while ensuring significant competitive advantages for our users):

Since smaller knowledge-based distributors have fewer administrative employees, “back-office” tasks are more challenging. Automation distributors, specifically, derive their competitive advantage through product expertise more than operational efficiencies. At Turn, we are focused on AI as a productivity tool to level the playing field in this area.

Pressing further, Turn has devoted massive attention to workflow throughout the inside sales, customer service, purchasing, and warehouse functions. This effort allows the ERP system to direct tasks to the right people in the organization, thus eliminating duplication of effort and automating communications. Turn guides employees to better focus on the customer while assisting them with their more menial tasks.

Economic experts forecast that the task of finding and retaining qualified individuals will become increasingly challenging in the years ahead. Turn’s AI component reduces training time and reinforces the overall process of running an effective distribution business. This solves one of the major challenges of the future by institutionalizing tribal knowledge.

Turn is proud to be associated with the many distributor members of AHTD and looks forward to attending meetings to learn more about how we can assist them in driving the future.

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