This week at ASCM CONNECT, I had a great time connecting with so many engaged and inspiring supply chain professionals in Austin, Texas. We explored numerous trending supply chain innovations, but none were more prevalent than artificial intelligence. AI’s transformative potential spans demand forecasting to inventory optimization to risk mitigation and so much more. It's clear that AI is no longer a futuristic concept; it's a reality that’s reshaping the way we work and compete every single day.
Keynote speaker David C. Edelman of Harvard Business School delved into AI with a focus on helping supply chain organizations personalize customer strategy. He discussed three essential skills in the world of AI. They include:
- Curiosity. AI offers supply chain professionals a wealth of possibilities, but to truly harness its power, we must be curious. By asking the right questions and exploring different avenues, users can uncover valuable insights and unlock the full potential of AI applications.
- Understanding data. Supply chain professionals must grasp the full range of data available both within and outside their organizations. This includes understanding data types, sources and reliability. By having a clear understanding of the data landscape, you can make informed decisions and ensure AI models are based on accurate and relevant information. This knowledge also helps users identify potential data security issues and protect sensitive information.
- Unwavering accountability. You can’t just have AI give you an output and then run with it. Edelman urged: “There are numerous optimizations that need to happen to help mitigate potential risks of bias, hallucinations and other challenges. You must be accountable for your AI outputs and take responsibility.”
The next day, KPMG’s Samantha Young shared her expertise to help attendees "focus on the AI short game.” She noted that, as companies advance their long-term efforts, compound volatility causes stress in the near term. Mastering the short game requires agility to make complex decisions quickly, and AI is a key enabler. For instance, Young says it can “de-risk” single sourcing by simulating alternate supply scenarios, mitigate productivity risk by predicting employee attrition, and reduce shelf-life loss by refining shipments for sell-through.
Another highlight was the session featuring HP’s Pedro Neto, Ph.D., and Yuangie He, Ph.D., professor at Cal Poly Pomona. After an interactive discussion with attendees, some fascinating discoveries were revealed about where supply chains really are with AI today. “Some companies are seeing efficiency gains,” Neto says, “while others are still figuring out how to translate AI hype into real results.”
These speakers also recommend starting small, saying, “With the right steps, we can turn potential into reality.” Specifically, they suggest focusing on practical use cases such as demand forecasting and inventory optimization, then building on those successes.
And speaking of the many benefits of small steps, keep an eye out for ASCM’s Supply Chain Signals next week, where you can read all about my chat with Arianna Huffington, renowned author and business leader. She shared the concept of "micro-steps" to achieve greater wellness and wisdom, and her strategies really resonated with attendees. I’m sure you’ll enjoy learning about them as well!
Your first small step
Given the potential of AI in reshaping the supply chain landscape, it's imperative for you and your team to stay ahead of the curve. Position your organization for success in our AI-driven future with ASCM's comprehensive resources. Start by reading 7 Things Supply Chain Professionals Need to Know About AI, a collection of ASCM content curated by Editor-in-Chief Elizabeth Rennie, which provides valuable insights into essential AI trends and applications. Then, take the next step and sign up to earn the ASCM Supply Chain Technology Certificate. Upon completing the program, you'll be ready to tap into the power of AI for innovative solutions and insights that will enable you to truly transform and advance your supply chain.
