Rapid Power for tomorrows Challenges: Quantum Computing reimagining Supply Chains

Is quantum computing the solution to the supply chain manager’s big data challenge?

Make no mistake, the exponential growth in data volumes and complexity that supply chain managers have to cope with is only going to continue. The internet of things alone will set off a tsunami of sensor data in the coming years. Supply chain managers will need new capabilities to cope with the massive challenges ahead. Is quantum computing (QC) the answer?

Supply chains – an ideal early adopter of quantum computing

QC will deliver far higher computing speeds. More than that, it will be capable of tackling problems that even today’s fastest conventional computers cannot hope to solve. To put it into perspective, while the power of a conventional computer can be roughly doubled by doubling its transistors, a quantum computer’s power can be roughly doubled by adding one qubit. 

QC will thus effortlessly crunch through the ever-growing masses of data needed to effectively manage today’s highly complex supply chains. It will also be able to handle new and far more sophisticated computational models and algorithms. Imagine real-time tracking and visualization of materials flows or fleet vehicles with ultra-fine-grained data. Or think of on-the-fly rescheduling of inventories and production systems in response to high-precision predictions of changes in demand. It is difficult to overstate the impact that an increase in computing power of several orders of magnitude will have on the way we run and manage logistics operations.

Route planning

Quantum computers are ideally suited for solving precisely the kinds of complex optimization problems that supply chain logistics face daily. Quantum systems will have little trouble dealing with the ever-rising complexity conventional systems are increasingly struggling with today – from advanced route planning and flexible rescheduling of shipments on multi-stage supply chain networks to scenario analysis and back-testing with historical data to enhance organizational structures. 

Take Volkswagen: the automotive group is already demonstrating the practical application of QC in a pilot project for traffic optimization in Lisbon. The company is equipping the city’s buses with a system powered by a D?Wave quantum computer capable of computing practically in real time the fastest route for each individual bus in its test fleet. As a result, QC-powered buses will be able to detect traffic congestion early and avoid it, substantially decreasing commute times even during peak traffic hours.

Predicting demand

Powerful computers running on subatomic architectures will have no trouble recognizing causal patterns underlying changes in demand. Picture a system capable of instantaneously recognizing the drivers of demand for specific products, from economic fundamentals and extreme weather events to the ever-present possibility of virus outbreaks we have all become painfully aware of in recent months. 

But also consider the implications at the level of individual consumer demand. To what extent could a cognitive model fed with the right data accurately predict the future behavior of consumers and as such inform high-precision supply chain planning? Backed by QC, companies could ensure that they have the right products and supplies in the right place at the right time and in the right quantity, thereby optimizing revenue while massively lowering inventory costs.

Greater security

The growing adoption of IoT and Industry 4.0 capabilities, coupled with the ever-increasing incidence and sophistication of cyberattacks on businesses, poses a major challenge for supply chain managers. Current data encryption protocols are vulnerable not only to future quantum systems, but also to ever-more powerful binary computers. The shift to quantum-secure encryption is therefore inevitable. 

The probabilistic nature of quantum information means that it cannot be precisely copied. This is game-changing with respect to data security, as it permits the development of encryption methods that are fundamentally unhackable by virtue of the laws of physics in contrast to the current reliance on complex algorithms.

The quantum future will catch many by surprise

Advances in QC are coming hard and fast. Big players, among them Google, Amazon, IBM, and Microsoft, are investing heavily and resolutely in developing large-scale QC hardware. Small-scale QC systems are already operational today. Some industry insiders are confident that qubits will soon begin to replace binary systems in specific use cases, and supply chains are an ideal candidate for early adoption.

Qubits will revolutionize the logistics sector, with quantum-based optimization leading to vastly reduced costs in manufacturing and faster delivery of materials. The ability to adopt and integrate quantum capabilities will prove a major stress-test for all businesses dependent on high-performance supply chains. 

What can you do to prepare? Start identifying and talking to the QC experts in your organization. They can already begin to experiment with the cloud-based quantum computers available today. Consider the most likely use cases. Feel free to reach out if you need a sparring partner to test your ideas. Above all, keep track of the QC space and don’t let it catch you by surprise.