Supply Chain Digital Magazine May 2025 | Page 120

SUPPLY CHAIN STRATEGY

“ There’ s enormous potential to leverage AI in procurement, especially around validating supplier suggestions against critical benchmarks such as diversity, sustainability and ethics”

STEVE LEVY, VICE PRESIDENT OF ENTERPRISE ARCHITECTURE, INFOR
At the same time, AI is transforming SRM, shifting it from manual to automated processes. Critical skillsets include identifying automation opportunities that can reduce 40-hour tasks to four-minute workflows, understanding how to combine discrete and generative AI and managing data lakes for automated decision-making. Success requires expertise in stakeholder management, change leadership and advanced problem-solving. The focus shifts from transaction processing to creating strategic value through AI-driven efficiency and innovation.
What metrics should leaders prioritise when evaluating AI-powered risk assessment systems in multitier supplier ecosystems? The metrics should assess the effectiveness of risk mitigation strategies and the system’ s capacity to maintain operations during disruptions. At Infor, we’ ve identified critical areas such as weather impacts, labour strikes,
port congestion and cybersecurity risks. The system should provide clear metrics on supplier performance, ESG compliance and financial stability. It’ s essential to measure both the system’ s predictive accuracy and its ability to provide actionable insights that enable quick response to potential disruptions. The metrics should also track the effectiveness of risk mitigation strategies and the system’ s capability to maintain operational continuity during disruptions.
As Gen AI adoption grows, what safeguards ensure AI recommendations align with both commercial objectives and ESG commitments? It’ s a great question – and increasingly critical as Gen AI becomes embedded in supply chain decision-making. First, organisations need to implement robust ethical AI governance frameworks, ensuring that models don’ t optimise purely for cost or speed at the expense of sustainability or ethical labour practices.
120 May 2025