Caleb Thomson, senior director at Gartner, discusses how supply chain managers can move from AI experimentation to operational value.
Thomson isn’t surprised efforts to implement artificial intelligence into supply chains often fail to scale because they’re much like the stories he’s heard throughout his career about poor data quality, lack of organizational readiness, and challenges to integrating newer solutions into existing system architecture.
Data alone isn’t the answer to operational value, he says. “Technology alone won't change the conversation within the organization.” Careful consideration of the experiences, expectations and understanding of technology of one’s workforce is required. It’s imperative, he says, to recognize operators’ issues with future-state technology visions and road maps.
Today, supply-chain orchestration has become the new “north star” in driving toward more frictionless and highly automated operations. But first things first, Thomson says. Leaders must understand where operational friction exists in their organizations. That could be related to poor data quality, misaligned data sources or outcomes resulting from decision gridlock.
As organizations process data maturity and grow into greater cross-functional optimization, they can think about how technology can help remove people from day-to-day activities to focus on long-term high-value strategic opportunities.
Thomson says to ask how individuals can create even more value as they get out of decision gridlock and mundane activities, such as approving stock transfer orders. Can they focus more on developing stronger relationships with suppliers? Can they focus on value creation through partnering with finance and sales?
Don’t believe that 100% of one’s supply chain data needs to be completely accurate all of the time, Thomson says. You must start incrementally, and as you achieve data governance maturity, move the goalposts forward to tackle larger challenges that can realize further value around AI and cross-functional orchestration.
