If there has ever been a time to think big, that time is now.
Supply chains, the lifeblood of the modern economy, face intense pressure to increase efficiency, speed, and optimization, all while navigating constant disruptions and increased uncertainty.
In 2025, challenges include uncertain tariff policies, geopolitical instability, trade disruptions, increasing demand volatility, the need for accurate forecasting, and the rising costs of raw materials and transportation, just to name a few pressing problems right now.
For many leaders, trade policy topics are also on the list.
According to a survey of manufacturing and supply chain leaders, 100% of respondents were concerned that trade wars will likely escalate in the next several years.
The stakes couldn’t be higher, as the ability to effectively manage these complexities will directly determine a company's survival and long-term success in the global marketplace.
Artificial intelligence (AI), particularly generative AI (GenAI) and Agentic AI, is emerging as a critical tool for addressing these challenges and transforming operations.
GenAI in Supply Chain Management
Few technologies have captured our collective attention, imagination, and investment dollars as much as GenAI.
It’s already transforming how we work, create, and interact with technology.
Supply chain leaders are no different.
According to Logility’s Supply Chain Horizons 2025 Market Report, 97% of respondents said they use GenAI technology in their existing workflows.
However, just 33% are leveraging supply chain-specific GenAI applications, hindering the 42% of respondents who said they are implementing GenAI into their supply chain management.
Specifically, supply chain leaders believe that GenAI can meaningfully improve transportation/logistics, risk management, supply management and procurement, data management, and inventory optimization.
In other words, supply chain leaders are clearly searching for technologies and processes that can transform their operations.
Overcoming Implementation Challenges
Gen AI can be that technological solution, but stakeholders throughout the supply chain need a practical framework for effectively integrating Gen AI into supply chain management right now.
#1 Start with High-Impact Areas
When GenAI can do “everything,” achieving specific outcomes can be difficult.
Prioritize the application of GenAI to address heavy manual processes or areas where key performance indicators (KPIs) can be significantly improved.
For example, the Supply Chain Horizons 2025 report shows that significant strides could be made in areas like forecast accuracy and on-time in-full (OTIF) delivery.
#2 Take Advantage of What You Already Have
GenAI implies “new,” but many applications have GenAI capabilities built in or readily available as a value add. The answer (or part of it) might be right under your nose.
#3 Don't Forget Change Management
Trying to use new technologies to execute processes in old ways is a recipe for failure. Your teams (up and down) need to buy into the effort and aligned on the goal.Your workforce should understand that GenAI enhances, not replaces, human expertise.
#4 Experiment
Smaller-scale GenAI projects allow you to test, learn, and build your business case. Industry and business-specific chatbots (think ChatGPT for your specific supply chain operations) are a great entry point.
They are fast to implement, tangible to use, and have an immediate impact on productivity.
#5 Be Open-Minded About Reinventing Your Processes
Fitting an archaic business process into an AI-driven technology may be suboptimal. Instead, look for opportunities to create new working methods using the power of GenAI and agents.
Experiment with new workflows, try GenAI and agentic solutions, and continually refine your supply chain workflows by sharing wins and developing your team’s collective knowledge.
#6 Look for Solutions That Don't Require Data Science Teams to Manage
GenAI is “AI for everyone.” If you need data scientists to explain it to regular humans, you're likely headed down a dead-end road.
#7 Have an AI-First Mentality
Don’t just say your company is “AI-first.” Make experimentation with the technology a first-principles part of your organization, anticipating that solutions built from the ground up using AI and GenAI are architected for the future.
#8 Identify Partners
Seek out partners who have a long-term vision for AI in all its forms and are curious about what's possible. Ensure those partners also uphold the highest data security standards and assist you in maintaining your data integrity.
Agentic AI Elevates Potential
Even as supply chain entities integrate GenAI into their workflows and outcomes, the technology continues to change, pressing leaders to adapt.
Agentic AI, with its capacity for autonomous decision-making, elevates this even further, enabling machines to perform tasks and achieve specific goals without human intervention.
In warehouse automation, Agentic AI powers autonomous forklifts and robots, streamlining material movement and order fulfillment. Agentic AI also transforms delivery and last-mile logistics by optimizing delivery routes and enabling autonomous vehicles.
The result is increased speed, improved efficiency, and reduced errors across machine handling processes.
AI-Powered Supply Chains on Purpose
The reality is that supply chain leaders are still building their strategies, and there is some good news to be found in that.
The window for creating competitive advantage is still open, but not for long.
To meet the moment, stakeholders must prioritize high-impact GenAI applications, effectively use existing technology, and emphasize change management throughout their organizations.
GenAI’s potential is real. Those who convert it into real impact will be best positioned to outpace the competition.
