Why Data-Driven AI is the Real Gamechanger for Supply Chains
Is supply chain disruption the new normal?
At Syren, we don’t think so! We have helped leaders build supply chains that can think and anticipate disruptions.
Vasim Mohammad, Syren’s Chief Operating Officer, in his thought leadership article: “Want to Build a Supply Chain That Thinks? First, find the right balance between Data and AI.” talks about how AI can transform a good supply chain into a strategic powerhouse, eliminating the possibilities of disruptions in the volatile business environment.
Tariff fluctuations, geopolitical instability, and pandemic-induced unpredictable customer demands are just a few parameters where supply chains face disruptions. But not all supply chains break down; the intelligent ones thrive.
How?
The answer is AI in Supply Chain. How a digitally mature supply chain harnesses the capabilities of AI, can make all the difference and help businesses anticipate change and adapt at speed.
One compelling case Vasim talks about is PepsiCo. It paints a clear picture of how AI can enhance customer experience by removing latency, blind spots, and gut-feel dependencies that have been major challenges in the traditional planning approach. He talks about how PepsiCo layered AI on top of a robust data foundation to get precision forecasting and inventory levels with smarter retail collaboration and better inventory outcomes.
So, what does AI-readiness in the supply chain look like?
As our COO says, it’s about a lot more than technology. It begins with asking the right questions:
- Is your data environment scalable and reliable?
- Can your data teams work with and share data without getting in the way of the IT organization?
- Are you applying AI to the right problems, ones with an attachment to quantifiable business value?
- Do your models provide explainability and build user trust?
AI alone doesn’t solve the problem. Vasim explains how enterprises need to have a strong foundation before implementing AI in supply chain.
He emphasizes how starting small and testing rapidly will enable self-healing automation with constant feedback. Also, giving a proof-of-concept (POC) of how Syren’s Power Platform and Modular ML framework solution for a Fortune 500 enterprise enabled an inexpensive and low-risk method for experimenting, learning, and iterating.
From Thought to Action: The Syren Way
At Syren, these ideas aren’t theoretical, they’re embedded in how we help clients transform with expert data engineering solutions.
Vasim shares the success story of a large CPG client that faced inventory issues and excessive write-offs due to static planning systems. By implementing an ML-driven forecasting engine over their existing data environment, Syren delivered:
- A 22% reduction in write-offs
- 30% improvement in forecast accuracy
- Increased planner productivity through auto-generated insights
Conclusion
AI and ML are transforming the way supply chains think, behave, and evolve. But they succeed on more than code, they succeed with properly governed data, aligned organizations, and a well-defined sense of business intention.
As Vasim concludes: "If your data already works for you, AI can help it work for your future."
Whether you're venturing into AI for prediction, distribution planning, or more intelligent decision support, this article gives you a clear-eyed perspective on what it takes to make that journey a success.
