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AI is Top Planning Tool for Supply Chain Leaders

AI is Top Planning Tool for Supply Chain Leaders

Sept. 30, 2024
Gartner advises companies to broaden AI techniques to optimize planning.

For supply chain planning (SCP) leaders, composite AI and supply chain data governance are the highest impact technology trends, according to Gartner, Inc.

"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," said Eva Dawkins, director analyst in Gartner’s Supply Chain practice practice, in a statement.

"Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation,” said Dawkins.

SCP leaders are tasked with developing a roadmap that demonstrates how technology investments can help their businesses remain successful and drive competitive advantage, despite growing uncertainties and economic pressures. This task is complicated by frequent disruptions and the rapid pace of technological innovation.

To increase and accelerate the realized value of technology investments, Gartner recommends facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products. This includes establishing a clear governance process that engages different stakeholders and solicits their feedback for using and prioritizing supply chain planning technologies.

Top Technology Trends for Supply Chain Planning

As supply chain decision-makers look to improve the decision making process, they are targeting supply chain technology investments. The top technology trends for SCP leaders are both directly supportive of this objective.

These include:

  • Composite AI: This trend is increasingly important to SCP leaders as uncertainty, complexity and the drive for automation must factor into their plans and objectives. Broadening the portfolio of AI techniques used (rather than seeking a one-size-fits-all approach) is the first step to optimizing and automating SCP activities. Once organizations have a broader portfolio available, they can define and implement composite strategies to leverage the wider variety of techniques.
  • Supply Chain Data Governance: This trend ensures data quality by formalizing the framework in which supply chain data is identified, defined, controlled and accessed, both internally and externally. Establishing or evolving supply chain data governance capabilities is often a preparatory activity for organizations embarking on a digital transformation journey. Relevant, accurate and complete data is necessary to establish trust and encourage adoption by end users.

“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected return on key technology investments.”