Fortune 500 companies are seeking my opinion on what they should do regarding the use of AI within their supply chains. I have researched AI for over five years and much of my research is on the use of AI in supply chains. Although I’m a believer in AI, I am skeptical of the ability of AI chatbots like ChatGPT and Bard from Google, to provide any value related to supply chain management.
In my career, I’ve been fortunate to have taken part in several large IT transformations that included installing software related to transportation management, warehouse management, Sales and Operations Planning, forecasting, and so on. I’m also skilled at using network modeling software to identify optimal logistics networks. My experience has taught me this – companies that implement the use of software without identifying and correcting the underlying structural causes of costs and poor performance within their supply chains, only end up doing bad things faster.
I understand the desire on the part of companies to want to leverage the power of AI. However, instead of jumping on the AI bandwagon, I strongly suggest that companies first embrace the use of Digital Twins to thoroughly analyze their supply chains and identify gaps across people, process, and technology. A ‘Digital Twin’ is a computer model that represents various components and processes involved in the supply chain such as warehouses, transportation networks, sourcing of materials, locations and roles of suppliers, the locations and products provided from your suppliers’ suppliers, manufacturing and capacity, global transport lanes, operations, and finance.
I’ve evaluated the majority of digital twin software on the market. Most companies that market their digital twin technology can only provide level One or Level Two capabilities; such systems aren’t worth the cost to utilize. The only digital twin software I recommend is offered by 345 Global, founded by Mark Edwards. Mark is one of the world’s leading experts on Digital Twins, AR/VR, and AI. 345 Global is the only company that offers Level 7 digital twin capability that maximizes the value of digital twin technology.
An example of a company that would benefit tremendously from the use of digital twin technology is Hasbro, who has a desire to create a best-in-class internal Supply Chain Design Center to optimize global planning. A digital twin of Hasbro’s supply chain would generate unmatched data, analytics, and understanding leading to a much improved supply chain to enable growth. Meredith Brooks Chris Cocks
As for AI…DO NOT TRUST. VERIFY EVERYTHING that ChatGPT or any other AI system provides related to the supply chain. AI is still an infant. It will take time for AI to grow and be useful in managing global supply chains.
Good luck!
