Last week, I noted the increasing currency of the term “orchestration’’ in various supply chain matters, from automated warehouse processes to the supply chain as a whole (see Maestros Wanted to Orchestrate Supply Chains.)
I discussed how there is now a new class of software that is called “Supply Chain Orchestration Platforms.”
Gilmore Says.... |
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| Metzger then pivots to the red-hot topic of “agentic AI.” These software agents “are poised to redefine supply chain operations. |
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I don’t know much about it. Gartner says such software is used to “power the transition of supply chain management from the back office to confronting and navigating business uncertainties. To enable this transition, these platforms use enterprise data enriched with network insights to prescribe and execute decisions in a governed manner.”
After all of that and some more, I introduced comments from SAP’s Dominik Metzger on this topic, writing on the pages of the World Economic Forum, that were interesting enough I promised I would continue with them this week.
Of course, Metzger says, today this involves “leveraging AI to automate decisions entirely, which enables the orchestration of supply chains by integrating applications, data and new automation technologies into truly agile operations.”
OK, that sounds pretty good. How do we get there?
“Applications trained on industry-specific business data, such as AI agents, can detect threats, analyze their potential impact, recommend mitigation strategies, and even execute responses before disruptions occur,” Metzger writes, adding that “This proactive capability pushes supply chain operations beyond basic digitalization, empowering teams to make faster, smarter decisions.”
So Metzger is saying supply chain orchestration is joined at the hip with autonomous supply chain thinking.
Gartner has been doing some work here too, recently writing that “Amid ongoing geopolitical, technological and talent shifts, CEOs are prioritizing the long-term development of autonomous business to help their organizations pivot quickly and succeed in fast-changing environments.”
Not surprisingly, Metzger says the foundation of supply chain orchestration is high-quality, contextualized business data. But of course, many organizations have created data silos, making it increasingly complex to stitch together data across supply chain domains, such as procurement, logistics, manufacturing or planning. There is often lots of unstructured data that has to be dealt with too.
The problem never changes, does it?
Metzger says that by applying something he calls “knowledge graphs,” this data can be connected across supply chain domains or silos to form the foundation of a digital twin of the entire supply chain, enabling end-to-end visibility and more intelligent orchestration.
He adds that “It is critical to have a clear strategy for collecting external data, such as supplier data e.g. advanced shipping notice or shipment statuses as well as unstructured supply chain risk and disruption data like port congestion or natural disasters”
 Agreed. But it is a lot easier said than done, as usual.
Metzger then pivots to the red-hot topic of “agentic AI.” These software agents “are poised to redefine supply chain operations. These task-driven tools interpret complex planning results, prioritize risks and generate mitigation scenarios, analyze impact to demand and inventory levels and optimize supply strategies.”
The result, Mezger says: reactive, rigid processes become proactive, continuous operations.
He then puts some meat on the Supply Chain Orchestration Platforms bones, saying the technology brings together traditional operational data sources (inventory levels, track-and-trace information), risk signals and supplier data (supplier health, geopolitical events, financial risk) and unstructured inputs (emails, meeting notes, market news) to create a comprehensive, real-time view of the supply chain.
Metzger acknowledges that these orchestration platforms are still in their infancy, with limited automation.
“But advances in AI and agent-based systems are set to massively accelerate their maturity,” Metzger argues.
I think I will leave there.
The autonomous orchestrating supply chain is coming, with our supply chain offices increasingly crowded AI agents.
It’s going to be a brave new world.
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