Supply chains must balance artificial intelligence with human talent

TO Bart De Munck

The views expressed here are solely those of the author and do not necessarily reflect the views of FreightWaves or its affiliates.

Stories about artificial intelligence often focus on its potential to automate jobs and replace humans. In supply chain, however, a more nuanced reality is emerging: AI and human talent are not adversaries, but partners in a symbiotic dance.

While AI undoubtedly brings automation and efficiency to supply chain operations, human expertise remains indispensable. As Gartner aptly notes, “access to labor continues to be a major constraint in supply chains.” This highlights the urgent need to attract, retain and empower talent in this increasingly challenging environment.

AI: a catalyst for attracting and retaining talent

Rather than replacing humans, AI can make supply chain roles more desirable. By automating routine and repetitive tasks, AI frees people up to focus on higher-value activities that require critical thinking, problem solving, and creativity. This not only increases job satisfaction, but also makes these roles more attractive to digitally savvy employees.

Retail, a sector already leading the way in AI adoption, is well positioned to take advantage of this advantage in the war for talent. By offering roles that combine technology and human expertise, retailers can attract and retain qualified talent who are committed to working at the forefront of innovation.

Beyond Automation: AI as Augmented Intelligence

The true power of AI in supply chains lies in its ability to complement human intelligence, not replace it. AI-powered tools can provide valuable insights, predictions and recommendations, enabling supply chain managers and their teams to make better, faster and more informed decisions.

Think ChatGPT in the freight industry. It can help with tasks such as providing real-time information, answering questions about delivery status, tracking information and potential delays. It can help generate reports and summaries by collecting data and generating reports on key performance indicators. It can further facilitate communication and collaboration by translating documents, summarizing complex information, assisting with customer requests, and sharing this information with multiple stakeholders.

While these capabilities are valuable, human control is still critical. Complex situations, ethical considerations, and critical judgment still require human intervention. In this context, AI acts as a powerful assistant that enhances human capabilities and allows for more efficient and effective decisions.

Changing the approach to work

The synergy of AI and talent has the potential to fundamentally change how supply chains operate. By breaking down functional silos and enabling more connected processes, AI enables a more collaborative and flexible work environment. For example, AI can help bridge the gap between planning and execution by providing real-time feedback on the impact of planning decisions on downstream operations. This allows for more dynamic configuration and better alignment between different functions, resulting in greater efficiency and responsiveness.

The benefits of human-artificial intelligence partnership

This collaborative approach offers a number of benefits:

Increased performance – AI automates tasks, freeing people to focus on higher-value activities.
Improved decision making – AI provides data-driven information and recommendations, allowing people to make more informed decisions.
Increased maneuverability – AI allows you to respond faster to disruptions and changes in demand.
Advanced Innovation – AI fosters a culture of innovation by providing tools and insights that fuel creativity and problem solving.
Attracting and retaining talent – AI makes supply chain roles more attractive and rewarding, thereby attracting and retaining the best talent.

The future of supply chain success depends on harnessing the power of artificial intelligence and human talent. By viewing AI as augmented intelligence, a tool that enhances human capabilities rather than replacing them, companies can create a more efficient, flexible and innovative supply chain. This requires investing in talent, fostering a culture of collaboration, and harnessing the transformative potential of AI. By striking the right balance, businesses can usher in a new era of supply chain excellence, driving growth and success in the years to come.

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About the author

Bart De Munck is an industry leader with over 30 years of experience in the supply chain and logistics industry. He has worked for large international companies including EY, GE Capital, Penske Logistics and PepsiCo, as well as several technology companies. He also spent eight years as Research Vice President at Gartner and most recently served as Chief Industry Officer at project44. He is a member of the Forbes Technology Council and the CSCMP Inner Circle of Leadership.