Embarking on the AI journey in the realm of supply chain management may seem daunting, akin to a deer caught in the headlights. However, contrary to popular belief, the key to success doesn’t lie in delving headfirst into deep learning or generative AI. Instead, set sail with a solid foundation—understand your company’s supply chain and data. This forms the bedrock upon which the edifice of AI strategy should stand.
Setting Sail: Understanding Your Supply Chain
One crucial aspect is steering away from islands of isolation. To maximize impact, integrate AI seamlessly into your supply chain, aligning results from end to end. The change needed often revolves around empowering your team to use technology more effectively, rather than crafting it from scratch.
In the words of a seasoned supply chain executive, the AI journey doesn’t have to be a solitary expedition. Collaborate with a trusted solution provider who can illuminate the path tailored to your starting point, fostering evolution along the way. The power of AI can be wielded by planners within your company, seamlessly integrated into the workflow of an end-to-end supply chain solution.
Why AI in Supply Chain?
The impetus for AI adoption in supply chain management is multifaceted. CEOs, recognizing the competitive advantage, believe that generative AI will play a pivotal role. Talent scarcity in the supply chain domain is a persistent challenge, driving the quest for increased productivity. Legacy technologies often hinder planners, with almost half finding them ineffective, as per a survey by the boom! Global Network.
AI’s ability to discern patterns and predict outcomes at an unparalleled scale makes it indispensable. From forecasting for retailers with vast sales records to automating lead time predictions, AI outshines human cognitive capacity. It not only saves time and money but enhances forecast accuracy and granularity by incorporating diverse signals beyond sales history.
Demystifying Generative AI
Generative AI (GenAI) opens doors to productivity by allowing users to seek assistance in natural language. Yet, beneath its seemingly magical communication lies a probabilistic sentence completion machine, devoid of true understanding. Context, collaboration, and conscience—qualities intrinsic to humans—are lacking in AI, reinforcing the need for human guidance.
Humans at the Helm: The Power of Understanding
AI, for all its prowess, lacks the essence of human capabilities—context, collaboration, and conscience. Understanding your supply chain and its data becomes the bedrock upon which AI must be built. A robust planning system, enhanced by AI, accelerates decision-making by saving time and offering insights. However, it’s human expertise and institutional memory that fill the gaps AI cannot grasp, as exemplified by P&G’s nimble response during a hurricane.
Connecting AI Islands: The Breakthrough
Isolated insights lead to limited impact. The real breakthrough lies in connecting AI islands of isolation and aligning the nodes of your supply chain. Concurrency combined with AI ensures real-time collaboration, eliminating silos. The value of AI insights is fully realized when seamlessly integrated into the planner’s workflow, breaking down barriers and enhancing productivity.
Leading Change: Humans Guiding AI
AI adoption is evolving, moving from artisanal to industrial. Companies are embracing platforms with built-in capabilities, and techniques like automated machine learning and citizen data science are gaining traction. The vision is “touchless planning,” where AI handles the routine, and human understanding is reserved for nuanced decision-making.
In conclusion, AI adds horsepower to the supply chain engine. There’s no need to fear the unknown—start where you are, understand your business and data, connect isolated islands, and lead your team to leverage AI’s potential.
Source: logisticsviewpoints/Polly Mitchell-Guthrie
