Supply chains must balance AI and human talent

By means of Bart De Muynck

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

The narrative around AI often focuses on its potential to automate jobs and replace human workers. In the realm of supply chains, however, a more nuanced reality is emerging: one in which AI and human talent are not adversaries, but partners in a symbiotic dance.

While AI undoubtedly brings automation and efficiency to supply chain operations, human expertise remains indispensable. As Gartner aptly notes, “access to labor remains one of the most important constraints in supply chains.” This highlights the critical need to attract, retain and strengthen talent in this increasingly complex landscape.

AI: a catalyst for attracting and retaining talent

Rather than replacing humans, AI can make supply chain roles more desirable. By automating mundane and repetitive tasks, AI frees up human workers to focus on higher-value activities that require critical thinking, problem solving and creativity. This not only increases job satisfaction, but also makes these positions more attractive to digitally savvy employees.

Retail, an industry already leading in AI adoption, is well-positioned to leverage this advantage in the war for talent. By offering roles that combine technology and human expertise, retailers can attract and retain skilled professionals eager to work at the forefront of innovation.

Beyond automation: AI as augmented intelligence

The true power of AI in supply chains lies in its ability to augment human intelligence, not replace it. AI-powered tools can provide valuable insights, predictions and recommendations, helping supply chain leaders and their teams make better, faster and more informed decisions.

Think of ChatGPT in the freight industry. It can help with tasks such as providing real-time information by answering questions about shipping status, tracking information, and possible delays. It can help generate reports and summaries by collecting data and creating reports on key performance indicators. It can further facilitate communication and collaboration by translating documents, summarizing complex information, assisting with customer queries, and sharing that information with multiple stakeholders.

While these capabilities are valuable, human oversight remains crucial. Complex situations, ethical considerations and critical judgment still require human intervention. AI in this context acts as a powerful assistant, enhancing human capabilities and enabling more efficient and effective decision-making.

Transforming the way we work

The synergy of AI and talent can fundamentally transform the way supply chains operate. By breaking down functional silos and enabling more connected processes, AI facilitates a more collaborative and flexible work environment. For example, AI can help bridge the gap between planning and execution by providing real-time feedback on the impact of planning decisions on downstream activities. This allows for more dynamic adjustments and better coordination between different functions, leading to improved efficiency and responsiveness.

Benefits of a human-AI partnership

This collaborative approach offers several benefits:

Improved Productivity – AI automates tasks, allowing human workers to focus on higher-value activities.
Improved decision making – AI provides data-driven insights and recommendations, helping people make better decisions.
Increased agility – AI enables faster response to disruptions and changes in demand.
Enhanced Innovation – AI fosters a culture of innovation by providing tools and insights that fuel creativity and problem-solving.
Attracting and retaining talent – AI makes supply chain roles more attractive and fulfilling, attracting and retaining top talent.

The future of supply chain success lies in harnessing the power of both AI and human talent. By viewing AI as augmented intelligence, a tool that augments rather than replaces human capabilities, companies can create a more efficient, agile and innovative supply chain. This requires investing in talent development, fostering a culture of collaboration and embracing the transformative potential of AI. By striking the right balance, companies can enter a new era of supply chain excellence, driving growth and success for years to come.

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About the author

Bart De Muynck is an industry thought leader with more than 30 years of experience in supply chain and logistics. He has worked for major international companies including EY, GE Capital, Penske Logistics and PepsiCo, as well as several technology companies. He also served as vice president of research at Gartner for eight years and, most recently, as chief industry officer at project44. He is a member of the Forbes Technology Council and the Executive Inner Circle of CSCMP.