How AI and Automation are Reshaping the Global Supply Chain

How AI and Automation are Reshaping the Global Supply Chain

At ProMat 2025, Ananta Islam, CEO and Region President, Americas, at Körber Supply Chain shared insights on the rapid transformation of supply chain driven by artificial intelligence and automation. As businesses adopt Industry 4.0 technologies, supply chain become more efficient, resilient, and data-driven.

The Growing Role of Automation in Supply Chain

Automation has shifted from a luxury to a necessity, especially in labor-intensive industries. The transition toward digitalization has enabled companies to improve machine uptime, leverage remote analytics, and integrate technologies like digital twins. These advancements provide a digital layer on top of mechanical systems, allowing companies to make real-time decisions and optimize operations. The demand for automation is industry-driven and customer-driven, with businesses expecting higher efficiency and reliability.

Debunking the Myth: Automation and Job Losses

One common misconception about automation is that it leads to job losses. In reality, automation enhances workforce productivity by automating repetitive and labor-intensive tasks. Many businesses struggle to secure human capital for these roles, and automation allows them to redeploy employees into more valuable positions. Instead of replacing workers, automation enables them to concentrate on higher-level decision-making, problem-solving, and strategic functions.

Balancing Automation with Human Oversight

Finding the right balance between automation and human oversight is key. Automation adoption has no universal threshold, as each business must assess its specific needs, investment returns, and operational goals. Companies look at automation not just as a tool for replacing manual work but as a way to improve consistency, minimize downtime, and increase operational efficiency. The decision to automate is typically tied to business performance metrics and long-term strategic planning.

The Role of Strategic Partnerships in Supply Chain Innovation

Collaboration and strategic partnerships play a vital role in accelerating innovation within supply chain. Companies that engage in co-development initiatives with suppliers, customers, and technology partners gain a deeper understanding of industry challenges and opportunities. Investing in research and development allows businesses to integrate automation in a way that aligns with their operational needs while ensuring compatibility across supply chain networks.

Sustainability: From Optional to Essential

Sustainability has also become a critical aspect of supply chain transformation. A decade ago, sustainability efforts were often seen as an optional initiative, but today they are an essential component of corporate strategy. Companies are increasingly incorporating sustainability requirements in supplier contracts and procurement processes. Many organizations are setting clear sustainability targets, such as reducing carbon emissions, optimizing energy consumption, and minimizing waste. These efforts not only meet regulatory requirements but also improve long-term business resilience and customer trust.

Lessons from Other Industries

The evolution of supply chain automation and AI has parallels in other industries, such as food and pharmaceuticals. A key takeaway from these sectors is the importance of structured growth. The rapid rise of e-commerce, for instance, has demonstrated the need for businesses to scale responsibly. Companies must balance investment in automation with a well-defined strategy to ensure long-term efficiency and operational stability.

The Future of AI and Automation in Supply Chain

The integration of AI, automation, and digital technologies is reshaping the supply chain landscape. Companies that embrace these advancements will gain a competitive edge by improving efficiency, minimizing risks, and responding faster to market demands. As AI capabilities evolve, supply chain will become increasingly predictive, adaptive, and interconnected.

Businesses that invest in scalable automation solutions, foster collaboration, and prioritize sustainability will be well-positioned to thrive in this new era of supply chain innovation.

About the author

This article was written by Greg Orloff, Industry Executive, IIoT World. Greg previously served as the CEO of Tangent Company, inventor of the Watercycle™, the only commercial residential direct potable reuse system in the country.