Logistics

'The Fifth Industrial Revolution' is unfolding, as AI challenges supply chains

'The Fifth Industrial Revolution' is unfolding, as AI challenges supply chains
Credit: Outlever
Key Points
  • As AI transforms industries, supply chains are under pressure to adapt to its changes at scale.

  • Dr. Muddassir Ahmed of SCMDOJO says overcoming fragmented systems and the lack of seamless data integration are key challenges.

Key Points
  • As AI transforms industries, supply chains are under pressure to adapt to its changes at scale.

  • Dr. Muddassir Ahmed of SCMDOJO says overcoming fragmented systems and the lack of seamless data integration are key challenges.

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The biggest change we’re seeing is in the AI space. It’s advancing much faster than anyone anticipated, and it’s happening at such a rapid pace that by the time many people realize what has shifted, it might be too late.
Dr. Muddassir Ahmed
Founder and CEO | SCMDOJO

As AI rapidly reshapes the foundations of industry, the path forward remains uncertain. For sectors like supply chain, the challenge lies not just in keeping pace, but in adapting to transformation at scale.

We spoke to Dr. Muddassir Ahmed, Founder and CEO of SCMDOJO, and host of The Supply Chain Show, to get his perspectives on the transformative potential—and hurdles—AI presents to the industry.

Revolutionary change: "The biggest change we’re seeing is in the AI space," Dr. Ahmed explains. "It’s advancing much faster than anyone anticipated, and it’s happening at such a rapid pace that by the time many people realize what has shifted, it might be too late. It’s almost like the fifth industrial revolution unfolding right now."

Knowledge is power: To help combat the gap between AI's revolution and supply chain, SCMDOJO is stepping in to provide expert educational content on supply chain management. "We are the only learning platform that has developed a B2B-focused learning module, which has resonated strongly with our business customers. Our content and courses are highly practical, designed to help them save time and money while improving their results. Ultimately, these outcomes ensure that businesses feel confident in their strategic choices, knowing they’ve partnered with the right supplier or platform. It’s not just about making people smarter; it’s about delivering better outcomes and validating the decisions that leaders make."

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Supply chains are inherently fragmented—at the system level, process level, and across various supplier and customer relationships. For AI to work effectively, it needs seamless integration with data, and that’s something the industry is still struggling with.
Dr. Muddassir Ahmed
Founder and CEO | SCMDOJO

The quest for integration: Despite the rapid advancements in AI, Dr. Ahmed notes that adoption within supply chain management remains a slow process. One of the major obstacles lies in the inherent fragmentation of supply chains. From the system level to the vertical level, the lack of seamless data integration makes it difficult for AI to generate immediate returns.

"Supply chains are inherently fragmented—at the system level, process level, and across various supplier and customer relationships," he says. "For AI to work effectively, it needs seamless integration with data, and that’s something the industry is still struggling with," explains Dr. Ahmed. The fragmented nature of supply chains means that AI's potential is not fully realized in the same way it has been in industries like marketing and sales, where automation has quickly standardized tasks like cold calling and follow-ups. In supply chains, the process is much more customized and dynamic, making standardization a pressing challenge.

Streamlining through AI: However, Dr. Ahmed stresses that while AI may not immediately replace traditional roles, its ability to streamline specific aspects of the supply chain holds great promise. "Supply chain functions such as procurement, sourcing, logistics, and inventory management are always going to be essential," he notes. "What’s needed now is for supply chain professionals to improve their understanding of AI and learn how to incorporate it into their processes."

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