What GenAI will not do for our Planning Process!
In the rapidly evolving world of technology, Generative AI (GenAI) has emerged as a powerful tool with immense potential. It can generate creative content, assist in complex problem-solving, and streamline various tasks. However, it's crucial to understand the limitations of GenAI and what it will NOT do for your business.
1. GenAI Will Not Fix Your Data
GenAI relies on high-quality data to function effectively. If your data is incomplete, inconsistent, or inaccurate, GenAI cannot magically correct it. Ensuring data integrity is a foundational step that requires rigorous data management practices and human oversight. Poor data quality will lead to poor insights, regardless of how advanced the AI is.
2. GenAI Will Not Ensure Your Processes Are Correct
Business processes need to be well-defined and optimized before introducing GenAI into the mix. GenAI can assist in executing processes more efficiently, but it cannot rectify flawed workflows or organizational inefficiencies. The groundwork of process optimization and standardization must be laid out by humans who understand the business's unique needs and goals.
3. GenAI Will Not Ensure Excess Inventory Walks Out of Your Warehouse
Inventory management remains a critical area where human expertise is indispensable. While GenAI can provide insights and predictions about stock levels and demand patterns, it cannot physically move excess inventory or make strategic decisions about inventory reduction. Effective inventory management requires a combination of data-driven insights and ensuring hard manual actions are executed by your team.
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GenAI: A Powerful Tool, Not a Magic Bullet
You would be silly to suggest that GenAI is not going to change the way we plan. For sure, GenAI is amazing and offers significant advantages. However, it is not the '101' of supply chain planning. For a business to progress, you need to start with the basics. Solid foundational practices like data integrity and process optimization and execution are essential. GenAI can enhance good practices but it cannot create them.
Conclusion
As GenAI continues to advance and integrate into various business functions, remember that its success heavily depends on the quality of data, the efficiency of processes, and the strategic input of human expertise. Embrace GenAI as a powerful tool in your arsenal, but do not expect it to solve all your challenges overnight. Start with the basics, and build from there.
Striving to make supply chains flow
4 个月I respectfully disagree on every point. Eventually GenAI will take the emotional aspect out of supply and demand planning and beat every human planner - even the ones who use the DDMRP silver bullet ?? I think that GenAI will even disable every ?inventory optimization marketing machine“ there ever was. Strap yourselves in, ddmrp‘rs
Chief Strategy Officer @ Noodle.ai | Supply Chain Planning
5 个月Actually, my experience is that #genAI is extremely good at surfacing #inconsistencies and #anomalies in your #supplychain #masterdata and #timeseries data, far quicker and more consistently than humans. The big #opportunity not mentioned is in replacing the decades old #fixed #rules and #deterninistic math used in all planning engines.
Automotive Professional dedicated to helping industries reach their full potential. My cross-functional experience across multiple industries renders me industry-agnostic.
5 个月Good article Kevin Boake GenAI is an assistant, not a replacement for critical thinking.
Result-oriented and solution-driven Supply Chain Professional / Forecasting / Planning / Purchasing / Inventory & Cost Control / ERP Specialist / Process Optimization / Operation Excellence & Innovation
5 个月Kevin Boake Great insight and can’t agree more. AI won’t deploy wise strategy and have effective processes in place for us. It’s a great tool like great ERP system, but if you have garbage in, it may still spit out the garbage no matter what kind of algorithms you use.
Supply Chain Solution Architect | SAP | Project Manager
5 个月Agreed - get the basics right and then I believe there is a role for GenAI by training the model to aid, guide the planner to issues and how to solve them.