Create a free Supply & Demand Chain Executive account to continue reading

Why 95% of Supply Chain Automation Investments Will Fail

83% of surveyed organizations had spent at least $3 million on automating supply chain planning, including AI, with 51% spending between $3-10 million.

Marina M Headshot
Ar130405 Adobe Stock 90554856
ar130405 AdobeStock_90554856

By 2030, only 5% of organizations implementing some form of supply chain planning automation will make at least 10% of their planning decisions autonomously, according to Gartner, Inc.

“Spending millions on supply chain planning automation can expand technical capabilities, but investment alone does not create AI readiness,” says Buse Aras, director analyst in Gartner's Supply Chain practice. “Leaders must establish the necessary decision, talent and technology foundations before scaling AI-enabled planning. Otherwise, they risk funding technology that does not improve the planning decisions that matter most.”

Key takeaways:

 

·       83% of surveyed organizations had spent at least $3 million on automating supply chain planning, including AI, with 51% spending between $3-10 million.

·       The pace of planning autonomy will depend on the type, complexity and risk of each planning decision. architecture before entrusting more decisions to AI.

·       The roles and competencies of planners will need to evolve as organizations move from AI-supported to AI-automated planning. Supply chain planning leaders must proactively redesign roles to transition planners away from being “data administrators” toward becoming “plan orchestrators” who collaborate throughout the value chain.

Page 1 of 192
Next Page