Just 23% of Supply Chain Organizations Have Formal AI Strategy | Material Handling and Logistics

Without making principled bets on calculated, higher-risk projects with longer payback periods, supply chain leaders miss opportunities to truly transform their organization’s capabilities. Gartner advises CSCOs to develop an AI investment portfolio that balances short- and long-term priorities, ensuring that investments realize value quickly without neglecting transformational initiatives that will power the future supply chain organization.

To effectively balance AI investments among short-term wins and long-term transformational benefits, Gartner recommends the following strategies for CSCOs:

1. Develop a Formal Supply Chain AI Strategy: Establish a defined and documented AI strategy that outlines both short- and long-term objectives, what success looks like, and what needs to be done (and by when) to achieve that success.

2. Adopt the Run-Grow-Transform Framework: Build an AI investment portfolio that includes "run," "grow," and "transform" projects to strategically allocate resources and deliver immediate operational efficiencies, as well as mid- to long-term benefits.

3. Invest in AI-ready Infrastructure: Ensure scalability and adaptability to meet evolving business demands, in collaboration with the CIO and other executive leaders.