AI in the Chain

The traditional notion of a “stable supply chain” is fading into history. Once anchored by predictability and efficiency, supply chains today face a relentless barrage of disruption—from geopolitical conflict and regulatory shocks to climate disasters, cyberattacks, and demand volatility.

Rather than striving to restore a lost sense of normalcy, leading companies are building a new operating model for a world where disruption is constant, and agility is the competitive advantage.

This article explores what that model looks like, why it matters, and how AI is powering the next generation of supply chains.

Why the old model no longer works

For decades, global supply chains were built for scale and optimization:

• Centralized production hubs in low-cost regions
• Long lead times driven by just-in-time systems
• Rigid planning cycles based on historical data
• Limited transparency beyond Tier 1 suppliers

This model delivered efficiency in a stable world. But it was brittle.

Today’s supply chain disruptions aren’t occasional anomalies. They’re systemic:

• The Red Sea shipping crisis has rerouted global trade lanes
• Semiconductor shortages persist despite capacity investments
• Trade tensions and export bans fracture tech and energy flows
• Climate events repeatedly shut down ports, warehouses, and factories

According to McKinsey, over 90% of companies experienced a significant supply chain disruption in the past two years. The majority of firms still lack visibility into their extended supply networks.

The lesson: resilience, adaptability, and visibility are no longer nice-to-haves—they’re core capabilities.

Introducing the new supply chain operating model

In this new era, the supply chain is no longer a backend function. It’s a dynamic, intelligence-driven system tightly linked to business strategy.

Key principles of the next-generation model:

1. Distributed networks
   Diversification of sourcing, manufacturing, and logistics nodes to reduce single points of failure. This includes nearshoring, friend-shoring, and multisourcing strategies.
2. Real-time decision-making
   Static planning is replaced by dynamic execution. AI and analytics enable organizations to react to demand, risk, and market changes as they happen.
3. End-to-end visibility and orchestration
   From raw material to customer delivery, organizations deploy control towers and data integration platforms to see, understand, and act across the supply chain.
4. Modular and flexible design
   Supply chains are rearchitected to be plug-and-play: easily reconfigurable in response to shocks.
5. Resilience as a performance metric
   Beyond cost and service, companies now track time-to-recovery, supplier risk, and scenario readiness.
6. Sustainability and compliance built-in
   New regulations (such as the EU Deforestation Regulation and CBAM) require traceability and carbon intelligence embedded into daily operations.

AI at the core of the new model

AI is not just a tool in this transformation—it’s the infrastructure.

1. Cognitive planning
   Machine learning enhances forecast accuracy, detects shifts earlier, and supports autonomous planning processes.
2. Predictive disruption management
   Natural language processing and anomaly detection monitor events globally—flagging emerging risks before they hit operations.
3. Autonomous sourcing and procurement
   AI evaluates supplier risk, ESG scores, and pricing in real time—supporting automated negotiation and contract management.
4. Digital twins and simulation
   Companies simulate disruption scenarios and test strategic changes without touching physical assets.
5. Inventory and logistics optimization
   AI dynamically adjusts inventory levels, replenishment triggers, and transport modes based on real-time data.

AI prompt examples for the new operating model

Prompt: “Analyze current supplier network. Identify single points of failure and suggest diversified sourcing options by region and risk score.”

Prompt: “Simulate impact of China export ban on rare earth materials across all product lines. Identify alternate suppliers and lead time.”

Prompt: “Create a digital twin of EMEA distribution network. Stress test for port closure, fuel shortage, and demand spike scenarios.”

Prompt: “Generate resilience scorecard for top 50 SKUs—include time-to-recovery, supplier redundancy, and risk exposure.”

Prompt: “Optimize current inventory across APAC warehouses considering demand volatility and cross-border restrictions.”

Case example: Maersk’s operating model transformation

Global shipping leader Maersk is transforming from a container company into an end-to-end supply chain integrator. To achieve this, it:

• Acquired visibility and logistics tech firms (e.g., Visible SCM, Pilot Freight)
• Built AI-driven digital platforms for real-time customer visibility
• Integrated inland logistics, warehousing, and customs services

Maersk’s model reflects the future: integrated, intelligent, and insight-driven.

Strategic takeaway

Companies that cling to legacy operating models will struggle in the years ahead. The winners will be those that embrace volatility, embed intelligence, and design for agility.

Supply chains are no longer built to run—they are built to adapt.

References
McKinsey & Company – Future-proofing the supply chain
https://www.mckinsey.com/capabilities/operations/our-insights/future-proofing-the-supply-chain

Boston Consulting Group – Cost and resilience: The new supply chain challenge
https://www.bcg.com/publications/2025/cost-resilience-new-supply-chain-challenge

Maersk – Enhancing supply chain resilience
https://www.maersk.com/insights/resilience/2025/02/18/enhancing-supply-chain-resilience-key-strategies-from-risk-to-flexibility

Maersk – Digital Twins for Efficient Supply Chains
https://www.maersk.com/insights/digitalisation/2025/04/11/digital-twins-for-efficient-supply-chains

Maersk – Empower Supply Chains with Real-Time Insights
https://www.maersk.com/news/articles/2025/09/22/supply-chain-real-time-insights-innovation

Deloitte – Enhancing supply chain resilience with proactive risk management
https://www2.deloitte.com/us/en/pages/operations/articles/supply-chain-operating-model.html

Reuters Events – Supply Chain Europe 2025
https://1.reutersevents.com/LP=38514

Wikipedia – Supply Chain Operations Reference (SCOR) model
https://en.wikipedia.org/wiki/Supply_chain_operations_reference