THELASTMILE Logistics Outside the Box
Avoiding AI Pitfalls Deploying artificial intelligence in supply chain management was not expected to be easy. Here are some early traps and how to avoid them.
Productivity paradox AI making some individuals more
AI To-Do’s Rethink your GenAI strategy in three key areas : USE CASES: Encourage creativity-based GenAI use cases so supply chain teams can unlock benefits beyond time savings. TALENT STRATEGY: Guide employees on how to deliver on strategic tasks and make use of the time they are saving from using GenAI tools. MANAGEMENT APPROACH: Shift focus from measuring automation to measuring innovation.
Doom loop Dread caused by the head-spinning speed of AI advancements “Chief supply chain officers may be inadvertently creating a productivity ‘doom loop,’ whereby they continuously pilot new GenAI tools, which increases employee anxiety and leads to lower levels of productivity.” – SAM BERNDT Gartner
productive but not the team as a whole “While the use of generative AI (GenAI) within supply chain has enhanced individual productivity for desk-based roles, these gains are not cascading through the rest of the function and are actually making the overall working environment worse.” – SAM BERNDT Senior Research Director, Supply Chain, Gartner
Digital paper pushers Team members using AI without buying into it
TEAM MEMBERS FALL BEHIND 4.11 hours per week Time savings reported by individual desk-based according to a recent Gartner survey of supply chain leaders. BUT team productivity lags: 1.5 hours per team member per week Time savings at the team level. employees who use GenAI tools,
“Companies implementing AI without fundamental process redesign create expensive ‘digital paper pushers’ but even worse, if you do not take your employees on this journey it will fail. AI is not a magic black box that employees will accept and align with. The change management process is equally important as the technological process.” – MARK TALENS Executive Vice President, Chief Strategy & Solution Officer, ParkourSC AI Catch-22 When enterprises find they can’t effectively deploy AI without process intelligence but they need more time and AI to get process intelligence
Data distrust AI output being met with skepticism and concerns about accuracy
Can we ever fully trust AI in supply chain management? Weigh in here: www.inboundlogistics.com/ good-question/
Most supply chain leaders [83%] understand improving processes will help them manage the ongoing change that characterizes supply chains, but many say they are too busy reacting to those disruptions to focus on improving processes, according to a 2025 Celonis report.
Sources: Gartner, Celonis
48 Inbound Logistics • February 2025
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