Artificial Intelligence in Supply Chain: What happened when we asked three AI experts to cut through the noise
Artificial Intelligence (AI) is rapidly transforming supply chains, transforming operations across industries – but 70% of business implementations fail, due to a lack of understanding, poor data quality, and a lack of total-business buy-in, a whitepaper released today by supply chain consultant TMX Transform has revealed.
Dr. Kim Oosthuizen, Head of Artificial Intelligence at SAP ANZ, and PhD in the business of AI; Aaron Ling, Founder and CEO of California-based transformation company LXOpt Ltd.; and Glen Borg, Head of Simulation at TMX Transform, were interviewed for the paper AI in Supply Chain: An Indispensable Ally (download the paper here).
Aaron Ling, whose previous roles include Head of Data at Ancestry.com and senior data and analytics roles at Salesforce, emphasised that AI is not an off-the-shelf product or standalone entity – it must become an integral part of operations.
“AI is only as good as the entire organisation working behind it, requiring everything to work together – people, process, and technology,” Mr Ling said.
Dr. Kim Oosthuizen, whose 2022 PhD explored how AI transforms the retail value chain via a more iterative and data-focused approach, says AI can automate a staggering 60% of existing work processes.
Glen Borg, former CEO of supply chain software company Dematic, urges businesses to direct their AI efforts towards “the points of difference that make a difference” so time, effort, and resources are spent wisely, and not wasted on ineffective or low-impact areas.
Key insights:
AI is not an off-the-shelf or “slap-on” product – it can fundamentally address, improve, and solve business problems.
Don’t become a statistic – 70% of businesses fail when implementing AI. A holistic, top-down approach, training, trust, and quality data are essential.
Don’t implement AI for the sake of AI. Implementation demands a strategic and thoughtful approach applied to a specified business problem.
Beware the ‘Black Box’ mentality. Certain outputs of AI are challenging to interpret, raising concerns about accountability, ethics, and bias in AI decision-making. Combining AI with business intelligence (BI) is a good solution.
Meet Employee 2.0: AI can automate about 60% of existing work processes. But Aaron Ling emphasises that AI does not reduce the value of human work: “All businesses are going to use AI – if we go back 20 years, we had bookstores, now we have Amazon. We had DVDs and Blu-Ray, and now we have Netflix.”
Waiting now equals a loss of competitive advantage. A top-down approach is needed – the support of leadership is required for AI success.
The paper also highlights how AI can significantly improve customer experience, operational costs, warehouse automation, demand planning, and inventory management in the supply chain. While the application and use cases vary, the value is regardless of industry.
Discover more insights in the AI in Supply Chain: An Indispensable Ally whitepaper from TMX Transform, available now.
