#170: AI in Supply Chain: Closing the Gap Between Data and Results with Pawan Joshi of E2open
Nov 1, 2023
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Pawan Joshi, a supply chain expert, discusses the impact of AI on supply chain operations and the considerations for implementing AI. They also explore the transformative power of AI in automating decision-making processes in supply chain management. Additionally, they discuss the significance of data in AI implementation and the emergence of large language models.
AI can improve supply chain operations and leverage human talent as a force multiplier.
Transforming traditional business processes is essential to fully utilize AI capabilities in the supply chain.
Deep dives
The Role of AI in Supply Chain Operations
AI is seen as a means to improve supply chain operations, turning disruptions into opportunities and leveraging human talent. The focus should be on running operations better and utilizing AI as a force multiplier. This requires a deep understanding of the problem, transparency in decision-making, and access to relevant data in a secure manner.
Demand Sensing and Forecasting
E2Open's demand sensing application, used by various CPG companies, combines historical data, retailer information, orders, and plan treatments to generate accurate forecasts for a 13-day period. The application operates in a lights-out mode, automating the execution of replenishment based on demand sensing results. The ability to self-tune the model further enhances its accuracy and effectiveness.
Transforming Business Processes with AI
The real innovation in AI lies in transforming traditional business processes to leverage the power of compute and connectivity. Existing processes, often built decades ago, need to be reimagined to fully utilize AI capabilities. Breaking down functional silos and adopting integrated planning systems can lead to more efficient and effective supply chain operations.