08/11/2026
The majority of c-suite and execs are honestly still drowning and struggling with successful AI for SCM implementations. For understandable reasons. But it’s coming and your competitors are or will be embracing it. So, finding a way is essential.
Some quick reminders on why we are here (will be bumpy for a while) and tips to keep you sane and focused on ultimate prize of ROCE improvement.
Why are we here?
Simply put. Vested interests…
There model providers have to hype their high valuation model products on every news cycle. But you can and really should ignore most of it. Unless you need that frontier model for managing 500 million SKUs across 5,000 DCs.
The SaaS (ERP / APS) vendors have to sell you on "AI this" and "AI that" to lock you into old ecosystems, given their short remaining life-spans (many of them).
The big consulting firms have to still sell services so of course you need the 37-step plan over the next 2 years to “properly implement the 15-point AI solution”
But it doesn’t mean you have to surf the hype wave.
You won’t be able to keep up. Only lose focus and become a deer in headlights. If you haven't already.
The reality is your ROI success and ROCE improvement will ONLY materialize following a 1st principles approach to your AI for SCM implementation.
No short cuts.
That’s why despite the hype, swirl and buzz. the BLOCKER remains, a shortage of REAL AI for SCM implementation skill. Can’t out market this reality. As well as limited exec and c-suite understanding of how and what AI really adds value in the organization.
Unfortunately, the noise and hype will continue, as it has done with other technologies in the past.
Despite the noise though, the other (quiet) reality is that there absolutely are a few and growing examples of companies proceeding on the correct path and seeing ROCE improvement results (keep the DMs coming for real examples).
Most recent is a North American omni-channel brand with a 300 – 350 annual net margin basis point improvement on one initiative. By focusing on the areas we call out below.
Your best bet since we can’t bury our head in the sand?
Keep focused on the 1st principles approach.
Establish that cross-functional Tiger Team to identify 2-3 customer-impacting, COGS or Full Price Sale / Extra Sale impacting initiatives to get going.
Why focus on the 50% or Full Price / Extra Sale area?
Leverage.
You need that high impact leverage to still generate +ve ROI after the bumpy ex*****on rollout reality. It WILL be as the tech is just too new.
More importantly, work on something that your competitors probably aren’t doing yet. Or doing well.
So you remain competitive and grab market share now.
Unfortunately, it will be bumpy for the next 2-3 quarters, but burying our heads in the sand is absolutely a non-starter option. So is “pilot posturing”
Stay sane!
AI for SCM smartly! Let’s go!!!
