Generative AI: Why smarter supply chains are here
October 05, 2023
October 05, 2023
Considering that supply chain roles have a 43% potential for transformation, let me run through some of the principal ways in which generative AI supports people – and the potential impacts it could have:
Just like AI up to now, I’m convinced we’ll see the most transformational results from generative AI when it is scaled across enterprise supply chains. One example? Think about the benefits for supply chain resiliency and agility.
In one real-world use-case, generative AI virtual assistants are being used to help supply chain managers secure new visibility into and control over supply chain disruption. Having alerted managers to possible disruptions to shipments (using AI-driven news reports), the virtual assistants can identify which suppliers are most likely to be impacted and prepare emails for rapid and seamless transmission to them (including suggested questions to help managers better understand planned mitigation initiatives.)
Or take another example: the impact on manufacturing and technical operations. Today, technicians gather supporting documents for key assets and systems from a fragmented knowledge base and use this information to support critical incident solving, maintenance and troubleshooting.
Using generative AI, they’ll have access to a single interface providing a new, integrated knowledge base and rapid cognitive insights. This will guide troubleshooting and root-cause analysis, provide key transactional information and trigger actions, and facilitate shift handover management. Our research finds that 25% of total workhours in Installation, Maintenance and Repair will be affected.
To get the adoption journey underway, CSCOs and CPOs should identify the potential of AI (with a focus on generative AI) in their existing processes. For those processes with higher potential, they should evaluate the automation impact as well as the new value generated.
This “2 by 2” matrix will show where they need to prioritize their efforts from the outset. In other words, to scale generative AI faster and move to a new performance frontier, supply chain leaders should take a “think big, start small” approach.
We’ve identified a number of imperatives that should underpin the adoption and scaling of generative AI. I’ve summarized them here, but it’s well worth diving into the PoV to take a closer look:
Generative AI marks a step-change in how and where organizations, and their supply chains, use AI. The opportunities are, frankly, enormous. And the time to start testing them out is now.
I’d love to hear your thoughts, so please get in touch. Thanks for reading.