Top Supply Chain Organizations Utilize AI at Double the Rate of Underperforming Peers

Supply chain organizations are increasingly investing in artificial intelligence and machine learning (AI/ML) to optimize their processes, with top performers leading the charge. A recent survey revealed that high-performing organizations are adopting AI/ML at more than twice the rate of their lower-performing counterparts.

The report, titled “Supply Chain Executive Report: Future of Supply Chain 2024” published by Gartner on January 30, highlighted that 40% of high performers are using AI/ML for demand forecasting, compared to only 19% of lower performers. Similarly, 31% of high performers are utilizing AI/ML for supply planning, while only 12% of lower performers are doing the same. The gap widens further with 27% of high performers leveraging AI/ML for logistics and distribution, compared to just 8% of lower performers. Additionally, 24% of high performers are using AI/ML for sales/operations planning, while that number drops to 10% for lower performers.

The largest disparity was seen in order management and fulfillment, with 33% of high performers utilizing AI/ML for these processes, while only 8% of lower performers are doing so.

Ken Chadwick, Vice President Analyst of Gartner’s Supply Chain Practice, noted that top-performing organizations are making investment decisions with a different perspective, focusing on enhancing productivity and leveraging intangible assets. He emphasized that unlocking productivity lies in optimizing supply chain data with AI/ML applications to drive value.

The survey, which included 818 supply chain professionals interviewed from August to October 2023, identified 119 professionals from high-performing organizations and 569 from lower performers. This underscores the growing trend of top supply chain organizations embracing AI and ML technologies to stay ahead in the industry.

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