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Why AI in Supply Chain Tech Could Fail?

  • Writer: Nirmal Devarajan
    Nirmal Devarajan
  • Apr 8, 2024
  • 2 min read

Updated: Apr 9, 2024


The Promise and Reality of RFID In Supply Chain


RFID Future of Supply Chain Tech, back in 2006, would have been one of the titles for 100s of articles. I was in North West Arkansas, Wal-Mart heartland. The University of Arkansas had an RFID lab (now closed). 


How it started ?


Everywhere I turned, it was RFID. WM was implementing it, and their largest vendors like L'Oreal were implementing it, and the who's who of the supply chain was implementing it. It was going to transform how shelves were going to be replenished.


On paper, it was a no-brainer. I could track the beginnings of AI in Supply Chain tech back to the days of RFID. We would generate so much data that a single action on the shelf would change my forecast hands-free! This was 18 years ago.


I work in Supply Chain Tech, so I am as excited about AI as in 2006 for RFID. So, what is the point of bringing up RFID? History will always repeat itself if we do not learn from it.


What Happened ?


Go to ChatGpt and ask why RFID initiatives failed from a human perspective.

The first two answers ChatGPT gave me are,


  1. Change Management

  2. Training and Skill Development


Relevance with AI


Now, I asked the same question for AI: What are some reasons AI would fail as a supply chain tech from a human perspective?

The first two answers ChatGPT gave me are,


  1. Resistance to Change

  2. Lack of training and Understanding


This could be true for ANY technological implementation in any functional area, which is my point. I have been and still am working with several supply chain professionals who define their productivity by the amount of time they spend in Excel, and they are all not at the end of their careers. 


When a new technology is implemented, the first and foremost discussion should be, "It is not about JOB ELIMINATION, but rather JOB ELEVATION," these need to stop being buzzwords and have a plan and meaning behind them.

What is the point of my post ?

Change management, training and skill development should not happen at the END of technological implementation. It should happen at the same time as solution blueprinting.

Put People First


I am asking my peers to stop considering technologically behind professionals as dinosaurs and rather powerhouses who carried their organisations to profit for the last several decades. I am asking management to consider People -> Process-> Tools in that order, how their job will change and what they will be able to do better should be the first discussion.


I also implore solution providers to provide that perspective. Please remember we have a job because people can buy things. If people don't buy things, we won't have jobs, nor would there be a need for innovations. 

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