AI, Omnichannel, and the Future of Supply Chain
Watch on YouTubeVideo summary
This webinar, hosted by Eva Ponce from MIT's Center for Transportation and Logistics and featuring Geodis Americas President Laura Ritchey, examines how companies can navigate the complexities of e-commerce and omnichannel operations through the strategic use of artificial intelligence and advanced technology. The session underscores that the primary objective is no longer merely speed, but rather delivering a seamless customer experience defined by reliability and accessibility, especially since acquiring new customers is significantly more expensive than managing last-mile delivery. To effectively handle volatility and geopolitical uncertainties, such as disruptions in the Strait of Hormuz, supply chains must transition from rigid automation to flexible solutions that balance cost with scalability, often utilizing digital twins for robust scenario planning.
While AI is evolving toward end-to-end orchestration, a significant barrier remains the inability to integrate disparate data sources, leading many current implementations to simply automate flawed existing processes rather than rethinking them fundamentally. Consequently, real return on investment for AI is currently found in managing information flows, such as document matching and predictability, alongside upskilling sales teams, while full autonomous decision-making still requires human judgment to handle exceptions and complex scenarios. This reality shifts the focus toward emerging supply chain roles that prioritize essential soft skills like storytelling to interpret data, empathetic listening, critical thinking, and adaptability over pure technical proficiency.
Successful transformation in this landscape ultimately requires a profound cultural shift where professionals challenge assumptions, learn from other industries, and focus on future-oriented problem solving rather than adopting new tools for their own sake. The event concluded with the speaker expressing gratitude to the global audience for attending and thanking team members Elise Jonica and Cara Greeney for their behind-the-scenes support and resource sharing. Special appreciation was also extended to Laura Ricci for sharing her valuable experience and background, while the speaker emphasized that audience feedback is crucial for improving future webinars and invited viewers to stay connected for upcoming events.
Read the full video transcript
[music]
>> Thank you for joining our open webinar
today.
I'm Eva Ponce. I'm the director of
online education at MIT, the Center for
Transportation and Logistics, and the
founder and director of the MIT
Omnichannel Supply Chain Lab.
Today, we are honored to explore how
companies are navigating some of the key
e-commerce and omnichannel
challenges with Laura Ritchey. Laura is
the president and CEO of Geodis
Americas.
Welcome, Laura, and thank you so much
for joining us today.
Thanks, Eva, for having me.
Okay, thank you. So, in this session, we
are going to discuss how companies, and
Geodis in particular, leverage
technology
and artificial intelligence just to
manage complexity, volatility,
geopolitical uncertainties, and fast
deliveries in omnichannel supply chains.
No small feat.
So, before we begin, let's try to launch
our first poll to better know our
audience. So, please, let us know if
your motivation to join this webinar.
Let's see if you are here because you
want to learn more about Geodis and how
Geodis are facing these e-commerce
challenges. Maybe because you want to
learn more about our wonderful speaker,
Laura Ritchey, today. Or maybe because
you are taking the MITx MicroMasters
Program in Supply Chain Management. Um
you want to apply what you learn
in your day-to-day job. So, let us know
your motivation. While you are
responding to this poll, let me briefly
share with you the plan for this
webinar.
We will start by learning about Laura's
leadership journey and her current role.
Then, we are going to explore how
technology, AI,
is supporting third-party logistic
providers. And most importantly, we will
discuss which capabilities supply chain
professionals need to develop to lead
these transformations.
So, please, share your questions using
our Q&A feature. Include always your
name. We are not going to bring any
questions without any name. So, please,
include your name and position. Um we
will also launch additional polls. Our
idea is to make the webinar as
interactive as possible.
So, let's try to have a look to the
first poll, Laura, just to see
the motivation of our audience to join
today.
Um okay. So, we have that 50% of our
audience are here because they want to
explore supply chain techniques as part
of their upskilling journey, which is
great. We are going to provide some of
this information throughout this
webinar. 30% want to learn directly from
you, Laura. They are here just to learn
about your leadership, about your
experience, your background, and your
day-to-day role. So, which is great. And
then we have also some of our
MicroMasters students. Welcome. You are
always welcome to our webinars. Thanks
for joining us. Perfect. So, with that
in mind,
let's try to deep dive into this
webinar, and let me start introducing
Laura properly. So, Laura is the
president and CEO of Geodis Americas.
Geodis is a world leader in transport
and logistics.
As president and CEO for the Americas
region, Laura oversees the management
and growth of multiple business unit
across North and South America,
including co- contract logistics,
freight, and transportation.
Laura led leads nearly 20,000 teammates
across eight countries: the United
States, Canada, Mexico, Colombia, Chile,
Peru, Argentina, and Brazil. I can tell
you, Laura, that I'm sure that we have
learners from all of these countries
joining us today. Which is great.
So, um
Laura joined Geodis in July 2025. But
pre- previously, she served as the CEO
of Radial. Radial is a cutting-edge
third-party logistic provider
specialized in innovative e-commerce
order fulfillment solutions.
I know, Laura, that you bring more than
30 years of experience, including 15
years in supply chain management, across
both retail and third-party logistic
providers.
You began your career in finance, and
then you transitioned in supply chain
operations. So, you have a great journey
here. Um has been leading initiative, as
I mentioned, in sourcing, distribution,
strategic transportation.
At Radial,
Laura also drove revenue growth and
profitability through a strong focus on
operational excellence. And I can tell
you that Laura is really good at
bringing the teams to achieve this
operational excellence.
I'm particularly excited to explore
Laura's rich background in retail and
e-commerce. Prior to joining Radial, you
also held senior leadership roles,
including chief operating officer at
Centric Brands, um as well as executive
vice president at Victoria's Secret,
among other positions. Laura, welcome,
and thank you so much for joining us
today.
So, before we start deep diving more
into the topics we are planning to
discuss today, anything you want to add
about your background,
um your journey to be here at Geodis as
the president and CEO of the company?
Yes, and thank you for such a nice
introduction. I really appreciate that.
I think what I would add is, if you
would have asked me at different points
in my career, I don't know, the 30 years
seems so long ago, but I'll say, you
know, in the last maybe even 10 or 15
years, would I be sitting here in this
role? I would have said no, because
traditionally in retail, you are never
the CEO of the company because most
often they promote a merchant or
somebody that is more product focused.
And I that was actually became a
self-limiting belief for me. So, I I
would encourage the audience to, you
know, don't necessarily define where you
think you will end, but think about your
journey, and don't limit yourself as
that to the possibilities of what you
can accomplish.
Excellent. Thank you for sharing that.
This is something that we cannot find in
your resume. Yes. So, which is great.
Thank you.
So, let us start the webinar exploring
how companies navigate e-commerce and
omnichannel challenges. Um Laura, we
know that the growth of e-commerce is
bringing many complexities to supply
chains. Just to name some of these
complexities,
can be related to the higher customer
expectation related to fast deliveries,
for example. Can be related to the
higher logistic cost, particularly the
last-mile delivery cost. Can be related
also to the geopolitical uncertainty
that is kind of the day-to-day now. So,
from your perspective, what are the
biggest challenges companies face today
in delivering this seamless customer
experience that omnichannel retailers
promise to their customers?
I think that's a great question, and I'm
actually going to start from the
customer and move backwards, because I
think in supply chain, it's so easy for
us to talk about, you know, how quickly
we get something through a warehouse or
how quickly last mile really happens.
But if you think about it from the
customer back, the e-commerce
experience, the last touch in that
journey, is logistics. So, either you
got the product in the package correctly
or not, you presented the unboxing
experience in a way that is enjoyable
for the customer, and you're really
actually creating brand loyalty for that
customer. So, for me, the quality in
which we execute and we deliver what we
say we will when we say we will, is
where we should start, right? And all of
course, all of those other things are
the building blocks to do that. So, yes,
customers do want things faster, but
they're willing to wait as long as they
know when it's going to come for
something they want. If it's more of
something you could buy in multiple
places, they probably don't want to wait
because maybe you can get it
more quickly, right, from Amazon, from
the brand itself. You also see the
evolution of retailers who would have
said that they own their own channels of
distribution, so they have their own
store, they have their own website, and
they wouldn't consider selling on other
marketplaces than Amazon. And you see
Estee Lauder as an example announced
that they will, in fact, now sell on
Amazon. So, there's also an
understanding of it's really the
customer's decision of how they want to
engage with your brand, and making your
business and brand accessible to the
customer where they want it is what that
winning strategy is. So, it's it's about
accessibility. It's about knowing when
it's coming, maybe not always the
fastest because maybe that's more
expensive. And then it's also really
realizing that as service providers,
whether you're internal to a company or
external, it has to be delivered with
excellence because you can lose a
customer really quickly. And the highest
cost that we actually face in the in
retail is customer acquisition. It's
much more expensive than paying, you
know, for for a last mile delivery at
this point.
Mhm.
Excellent. So, customer first. Let's be
customer-centric. Of course. And then,
e-commerce by itself also bringing a lot
of
volatility, demand volatility associated
to to to e-commerce by itself, but also
retailers typically they they have these
peaks that can bring three to 10 times
the volume during the the the peak
season. Let's say Black Friday,
holidays. So, um how do you design a
supply chain that is both resilient
at the same time cost-competitive when
e-commerce demand is so volatile and
sometimes you have also the uncertainty
that is not all the uncertainty is not
only for e-commerce, but the volatility
probably is more associated to
e-commerce.
Yes, and I think that that's a changing,
you know, so in the past, the way that
we handled that is you would you would
make sure that you had capacity to
handle those peak surges or handle maybe
80% of that peak surge charge and you
would or peak surge and you would have
that year-round. So, you would be paying
or automation, you would be paying for
space. But with the cost escalations
that we've seen in rent prices for
warehouses, you know, the cost
escalation in labor and obviously the
investment that you have to make in
automation, that's not always a tenable
way to go. So, in some ways, we've like
stepped forward and backwards. So,
automation is helping us step forward.
You're able to manage
more throughput with fewer either people
or installations of automation. But to
the flip side, automation is not
particularly good at scaling from a 1
day to a 5x the next day. And so, we
started to go back to potentially
introducing manual solutions that are
more cost-effective because say you do
two sales a year plus you have the
holiday season at the end of the year,
why would you want to pay for that
investment year-round? So, we're we're
actually, you know, going forward in
terms of automation, but then in some
ways a little bit the way that we used
to think about it, which is, you know,
it might be more economical to actually
manage those peaks through the addition
of labor than trying to build an
automation automation solution that
might sit idle or underutilized for a
significant portion of the year.
Yeah. It's very interesting that you
bring automation because definitely just
to increase the throughput, just to
build more capacity is helping,
especially with the the issue that you
just mentioned about labor cost
increasing, labor shortages. That is
another topic that we we will also be
discussing. But automation also needs
this upfront investment sometimes. Um
we we might want to talk more about
rigid versus flexible automation because
the rigid automation might make sense
when volume is high, when we know the
demand and we can predict the demand.
But coming back to the volatility of the
e-commerce, um how do you see or how do
you see achieving with automation or
more flexible autonomous automation this
flexibility in a warehouse that need to
adapt to this uh
peak in the demand?
Yeah, that's a great question and
something like a Geodis, they're
constantly trying to figure out this
balance because it's not only about the
volatility, but it's the evolution of
the business itself, right? So, we have
a business that we're working with right
now that has 90,000 SKUs, right? We have
other businesses where we have 2,500
SKUs. So, the automation solution not
only has to be around the absolute
number of orders or units that you have
to get out of the business, but the
individuality of those SKUs, right? And
and can you really build an automation
solution and use, for example, the bots,
right, that that go to the pick
locations when you have 90,000 unique
locations, you might have to think
differently. But similarly, if you build
an automation solution that is more
um using the the robotics that are more
of an install, would you ever really
have that much capacity? So, we really
go through and look at, you know, SKU
profile, do customers think they're
going to be growing their SKUs? We've
had some installations where, you know,
we put that we put it in, the SKUs
double, it becomes less effective. So,
it's it's really thinking about not only
velocity, but the mix that you have.
There are some really cool new
automations and I try not to be a
commercial
for anyone, which is why I'm being a
little cagey with the names, but there
is some new interesting automation that
becomes a lot more scalable. So, uses
your new existing rack, is able to be
installed in facilities that might be a
little older where some of the the other
automation requires, you know, smooth
concrete floors and things like that.
So, I I think that we're definitely on a
journey. We went through a period as we
were coming
through the pandemic years where, you
know, we used a lot of automation
because of the surge in labor pricing
that that you alluded to. And now we're
thinking we have to be a little bit more
balanced in how we think about
automation and scalability and and what
that looks like, particularly if you're
investing as a third-party logistics
provider where our customer mix might
change over a period of years.
Mhm. And now that you mentioned the
pandemic because definitely the pandemic
brought
good lessons and and also a yeah, we
have also that peak in the demand,
especially for online sales versus
in-person.
Um
I I also want to connect with the
current global context. Um
disruption is now the new normal. We
know that.
Um there are some geopolitical tensions
that are also impacting uh supply
chains. Um so, this need of resilience
that during the pandemic also was very
clear that we need to have resilient
supply chains. How do you how do you
connect these lesson learns with the
current situation and the geopolitical
tensions and the level of uncertainty
that we have now
um
in supply chains in particular?
Yeah, I think we've hit the next level,
right? So, if during the pandemic, the
disruption was about, you know,
acquiring goods because maybe factories
weren't open or, you know, the tariffs
that came in in 2016 and you needed to
move the first round and you needed to
move some of your sourcing, like those
were where we I felt like we were moving
the chess pieces around the board. Now,
we perhaps might have tipped the the
chessboard over in terms of um you just
don't know, right? So, I don't think
anyone contemplated that the Strait of
Hormuz would be essentially closed, um
which is a huge huge piece of trade for
us. So, what I'm finding is is we're
much more now about like re-architecting
and re-engineering
how we think about it. So, potentially
the nationalization of manufacturing,
even more friend-shoring or near-shoring
of sourcing. So, we as supply chain
leaders have to be really close to how
people are thinking about the products
and where they're going to be made.
We're going to see more things
potentially made in the United States
from a component perspective have to be
offshore to be assembled and then back
onshore to be sold to the computer or
consumer. So, I think that for us, it's
really it's just thinking totally
differently about, you know, what are
the flows. We're still moving stuff, but
where we're moving it from, how long we
might be warehousing it, whether it
needs to stop somewhere else as it makes
its way to its final destination, and
how do you think about that from an
agility perspective, which leads me to
the age-old problem of we still don't
have supply chain visibility. We've been
talking about this for as long as I've
been around and maybe AI is the magical
solve for that, but if you think about
it, if you're going to put your things
on a ocean carrier, you're going to put
them through customs maybe with your
broker, you use a 3PL, and then you use
some transportation companies, there
still is not a solution that is readily
available in the market to stitch that
together. And that's what we ultimately
have to have to be able to have this
re-engineering and resilience come to
fruition.
So, if any smart people on the
um webinar would like to invent that,
there's a big market.
>> [laughter]
>> Indeed, there is a very good question
from the audience from a FIT alum. He he
was asking how current geopolitical
tension and global crisis would impact
omnichannel and e-commerce supply
chains. And I think you already answered
the question with the re-engi-
re-engineering approach as well as all
the near-shoring approach that you just
mentioned. So, yeah, I don't know if you
want to add anything else to that
question?
Well, I think it will also just be
having, you know, we might have had like
one contingency plan now, we're going to
have two contingency to three
contingency because it just feels like
we we don't we don't know, right? Like
if you're if you're thinking about um
I'm sourcing from country A, you better
have B and C somewhere in the background
at least working from a scenario
perspective.
Yeah, excellent. So, Laura, now I I want
to to bring one of the key challenges
in omni-channel particularly because in
omni-channel
companies need to manage these multiple
channels. But they at the same time they
need to provide this seamless customer
experience. So, truly they need on the
back end to have these integrated
network, unified
network in order to be able to provide
this seamless customer experience. So,
I'm curious about how
uh
how are you seeing companies moving to
this single unified fulfillment network
or if you are still observing this
multi-channel
approach that is managing the supply
chains completely separately instead of
having this integrated unified supply
chain approach, network approach? Yeah,
I think it I think it really depends on
sort of the maturity of the company. So,
certainly some of the newer e-commerce
players as they've moved into more of an
omni-channel has started off by saying I
want to have them unified so that I have
the benefits of maybe one or two pools
of inventory instead of two entirely
separate. Also, if you think about the
customer journey, if I'm buying from
multiple channels from that same
business, they want to be able to to
show me that a unified experience,
right? So, so making sure that they did
that. That doesn't mean physically
though that we're doing anything
different than we already did because
from an e-commerce perspective, I still
need to be located closest to the
customer because the last mile delivery
is what costs the most. If I have, you
know, onshore nearshore manufacturing,
then I obviously would want to be
somewhat located near that because my
business to business is going to be
going out as full ca- full case and full
pallet. So, it is finding that artful
way to to design your network. Um but a
lot of it comes back to being able to
share inventory because particularly if
you think about the 90,000 SKU company,
like where how many pools of that
inventory could you really have from a
cost of cost perspective perspective or
you're thinking about it different and
you're saying, you know, these 10,000
SKUs make up the most of my inventory so
I'm going to put those closest to
customer and I'm going to leave the
other, you know, maybe into
concentration nodes. So, I I think in
the I know we're going to talk about AI,
but ultimately being able to figure that
out. Like we've always done that with
machine learning or some of the older
tools that we've had, but that idea of
orchestration
will be key because physically we will
always have to flow goods. They always
have to be touched by something or
someone and we're going to need to be
able to manage costs, right, throughout
the network.
Yes, exactly. So, maybe it's a good time
now to move to the AI discussion because
definitely
yeah, companies are moving to that. I
you just mentioned this end-to-end
orchestration.
Um I just uh
run the report for the 2025 omni-channel
supply chain survey and it's very
interesting that one of the key
takeaways shows that AI is evolving from
isolated applications um to a more
end-to-end supply chain orchestration.
So, last year in 2024 companies were
using AI more to just uh optimize demand
forecasting, warehouse operation,
picking, routing and this year companies
are
sharing with us that they are now using
AI more as
end to to make end-to-end decisions.
Just to orchestrate the
entire supply chain. That is very
aligned with what what you just uh
mentioned. So, let's try to then focus
more on this AI. Um
So then, Laura, how do you see AI
contributing just to to enhance these
operations and also your customer's
supply chain because definitely you're
working directly with the customers. So,
how do you see AI improving here beyond
that general term of end-to-end
orchestration?
Well, I think some of that to me is
still a little bit hype. Like I get I
get aspirationally that's where we want
to be, but if we still are unable to
stitch the data together from a full
end-to-end perspective, it becomes very
difficult. So, I actually was speaking
with someone who said that he's spent
the last 5 years doing four pilots with
different types of solutions before
today he finally believes he's at
orchestration where he can say I can see
it from origin to destination. I can
have all the data and, you know,
associated documentation that I need to
go with, but he's undertaken that for
his company as a competitive
differentiator. So, I think we have I
think it'll go very quickly and I think
we aspire to that, but I still see a lot
of the orchestration being done through
tools like a Power BI or something where
you're stitching many, many sources of
data together which doesn't feel like
we're yet harnessing the full power of
AI which is going to be exception
management
and, you know, insights from the data
about patterns that may be positive or
negative that we can react to. I still
I'm just not seeing that and I think we
all want it. Every conference that you
go to, everyone's talking about it, but
mostly what you see are still those
point solutions
where they just aren't stitched
together. So, again, we've got a lot of
smart people on here that that can
figure it out, but it is a challenge and
we know the names of the people that
have tried to do this over the last,
say, 10 or 15 years and it's been tough.
It's been really tough. But we have to
get there. I mean, it it's sort of it's
sort of unbelievable, right, that in
2026 we say I have to go to seven
different places to find where my stuff
is. Like that just doesn't make sense.
Yeah. We We have a question from Walid
Tabbarah from Saudi Arabia.
Um he's pointing exactly that. He's
asking, "Laura, which AI use cases in
supply chain are providing real
ROI today and where are companies
wasting money because they are chasing
the hype that you just mentioned?"
That's [snorts] a great question and
thank you for asking. I think that we're
seeing a lot of the the benefit right
now in managing all of the flows of
information. So, if you think about it,
you know, to move a a shipment from
origin to its either final destination
to or to its next country, the
paperwork, the document matching, the
booking of freight, figuring out if it
got on the ocean vessel or the aircraft,
um then when it makes it to the country,
did it get on the rail? So, we're seeing
real ROI and not in savings from
whether, you know, we have more or less
people doing it, but the ROI of being
able to say I have predictability about
when my things are coming. I know where
they are. Um I may be able to pull a
sale up because something's going to
come earlier than I knew. I I have a new
floor set in a store if I'm a retailer
and I see I missed the vessel so now I
know that I'm not I'm going to be a week
late. So, I think it's really those are
the types of use cases. I think the
other thing too is just education. So,
we're obviously a sales business because
I'm a third-party logistics provider and
the the things that we're able to now do
for like customer preparation. So, I
just had a customer meeting and I was
presented with a brief that told me not
only all about the customer, what GEODIS
does for the customer, but also the
people that I would be meeting with and
what might be important to them. So, my
ability to have a productive
conversation with somebody, right, that
I haven't met yet and a customer I may
not be familiar with given we have tens
of thousands of them is so much more
interesting and that's a huge ROI
because we're able to develop, you know,
further places where we can help
customers and improve revenue. So,
there's a lot of cool things like that.
I do think, and this is still my
aspiration, we really need to start
leveraging it more for how we're
upskilling our people. So, it's kind of
interesting that you need to be
upskilled in AI, but AI can actually
upskill you. So, the irony of solving
that, right, to say how can we teach you
to better use AI to make you even more
effective in your point and we are going
to definitely
deep dive more on this upskilling
approach because
it's not only just to upskill the
workforce to understand the techniques,
it's also to see how they these
techniques can augment the human using
make it even more powerful. So, that's a
good question. Just to to to wrap up the
AI
topic, we have also another question
from Jorge Gutierrez, VP of logistics
and distribution in Colombia in the in
supply chain and retail operations. And
he's asking specifically about how can
AI help to improve supply chain
processes. And he's referring here
mainly to planning, forecasting. I know
you also mentioned a little bit about
machine learning techniques and demand
forecasting. Maybe you want to elaborate
a little bit more on that.
Yeah, to me that we're going to be at
the next level of that, right? So, if
we've done machine learning for
forecasting either around consumer
demand, flow of goods, labor planning,
right? The various places that we need
to do forecasting. What AI is allowing
us to do is just be more predictive
around trends. So, in our business, it's
quite often the customer says, "I will
sell 1 million units." Because they're
very aspirational, they're always very
hopeful about their customer
expectations. We can actually look and
say, "Okay, for a product of similar
characteristics, what happened last
time? What's different about this that
might be diff you know, that might cause
us to believe it's 1 million or think
it's 800,000. And then how do we plan
our labor so that we're not spending
money or having people that are sitting
around idle. So, I I do believe that
this ability to be more predictive, and
that's already become somewhat of a
reality, right? There's tools to do that
and and to think about that. So, I think
it will be better in planning and
forecasting. What I'd like to see is as
we have more of this end-to-end
visibility and orchestration,
the ability to scenario plan it for you.
To say, "What if, you know, this
happens?" Like could you eventually just
put in um "What if the Strait of Hormuz
closes down? What will happen to my
whole supply chain?" So, that's really
the evolution to digital twin, which is
something that we're deploying, where it
enables us to do either in network moves
or in warehouses and say, "This is the
outcome of these scenarios."
Yeah. And this is scenario planning that
you are bringing here definitely is
more than needed when we have this
uncertainty environment. So, it's really
a very helpful tool to manage this
uncertainty. So,
>> That's right. And and it's going to help
you like see around corners. Something
we've always wanted to do is to be
predictive. We'll just have to be
careful that the technology has to learn
and get to the place where we believe
the predictions, right? What do they
call it it hallucinates. We don't We got
to be careful about hallucinations.
And also train with the right um
yes, high-level quality data just to
make sure that it's well trained. I
agree on that. Regarding the
implementation challenges for these AI
tools, you you mentioned one point that
definitely is very aligned with our
conversation with other companies that
is pilot and then a scale. And this is
truly a a challenge just to
to go from the pilot to the to a scale
the solution. Um any other barriers that
you you also mentioned upskilling and we
are going to go through through that
later. Any other barrier you want to
bring here when implementing that can
delay or prevent the implementation of
these AI tools?
I think the biggest barrier that I'm
seeing is we're trying to use AI to do
processes how we do them today. So,
instead of rethinking about what could
be truly different, we impose that we're
automating or that we're improving a
process that we already have instead of
saying like do we even need to do this
anymore? Like is this relevant? There's
actually a report and I forget who
published it it that said by 2030, 30%
of the services that you get from your
3PL today will be done by AI. So,
process improvement or automating a
process isn't what's going to get us
there, right? It's going to be thinking
entirely different about what is the
differentiated services that we offer
and what will those things be that
become taken over by AI. So, I really
think there's a mind shift and a culture
change to make this successful, which I
don't know that we're talking as much
about, right? Because probably because
it feels softer and it's hard to pin
down what needs to happen for that to be
true.
Exactly. And this connect also with your
first point about rethink the supply
chain. So, it's totally connected with
that approach. Excellent.
So, Laura, that now that
AI and automation technology is
not fully implemented, but companies are
adopting more and more technology and
automation and AI tools.
What are these supply chain decisions
that realistically you think can be
autonomous in the next 5 years? And
which of those will still remain
human-driven?
Yeah, I think it's going to come down to
where you need true judgment, right? So,
if you think about um an exception
management tool. So, say for example
that we're automating how we work with
our drivers around transportation. I'm
going to be able to teach it to say if
the driver's early, here's what you
should do. If the driver's late, here's
what you should do. If there's an issue
with the cargo, here's what you should
do. So, things that are rule-based are
be are becoming quite quite simple to
put in AI. What happens then is um oh,
wait, there's a penalty if I'm late at
this customer and I have to call some
very specific person, well, who's going
to do that, right? So, then that's going
to have to pop out of the system. When
you think about if we're using a digital
twin model to design, say a new
warehouse, well, the footprint of every
single piece of real estate is never the
same. So, you're going to have all these
rules that say if then if then, I know
more sophisticated than that, but in
essence that. And you're still going to
need somebody to look at that and say,
"Yeah, but does that actually work? Does
I I've been doing this for some number
of years, does that actually work?" So,
I think we're going to continue to say
where judgment, innovative thinking, you
know, something that is not necessarily
just magically learned through data
consumption, but through real-life
experience will will need that human
intervention. When people talk about
like dark warehouses, you've seen
companies that were starting down that
road and have now stepped back a little
bit because they've actually determined
that the quality errors that have
occurred because of having it be
entirely autonomous are not worth the
expense that you saved by automating it
that far. So, we will have to find what
that balance is. And a lot of times it
just comes down to right quality, cost,
and service.
Mhm. Yes, and also connecting with the
training part that you mentioned before,
no? It's we we train the models based on
certain assumptions, but when something
change or some of these assumptions
change,
some human needs to bring that to the
model that assumption change and then we
need to train the model again. So,
definitely it's important to bring that.
Right. Okay. And this connect also well
with the new roles because definitely
is impacting the workforce, will be
impacted in the future. So, what are
these emerging new roles you see for
supply chainers?
So, this is going to be
counterintuitive, but I actually think
that we need to go back to being able to
be storytellers.
To be able to take data and turn it into
a cogent story. If you think about it,
if you put something in chat GPT right
now and ask it to give you something,
it's going to write blah blah blah long
list of things, but it's it's not
necessarily like a cogent story. So, I
think the role of supply chain
professionals are going to be able
you're going to need to be able to tell
the story of why should I set up my
network this way? What thoughts went
into this? And and beyond just being
assumption-based. I also think the
ability to to glean the insights or see
patterns. So, AI will certainly see the
pattern if you said um this shipment was
late 17 times and therefore I should
watch out for this lane because it's
going to be consistently late, but
putting that to say, "Oh, but wait,
there's also the inbound from there was
also consistently late and that's
actually what's causing it." It's it's
just not robust enough to think like
that. So, I I do think there's this
softer skill piece that has to come with
being able to see patterns and put
together like cogent stories to share
your insights with people. Then I do
think of course the ability to
um have da-
better data analytics um and understand
that. And and I do think learning how
the supply chain really optimize works
at its best. So, our ability to go out
like talk to people from other
industries. If if I'm in logistics and
say for example we don't do don't do
cold chain, there might be things I can
learn about that. There's things I can
learn from technology companies about
how they build their product or how they
sell their services. So, I know everyone
will think I should say like, you know,
use cloud a lot and train yourself, but
I think it's these soft skills and
that's what the humans are going to be
asked to do, right? Instead of instead
of the AI.
>> [laughter]
>> I love to hear that, Laura. Two years
ago I was training my team to come up
with the best prompts for chat GPT and
and this large language model, but last
offsite we did a storytelling workshop
just because of what you are bringing
here. So, yeah, that's a great point.
Okay, so
let's do now the following thing. Let's
try to hear from our global audience
about this important topic. Let's launch
the second poll. Um let's see what they
think about which are the skills that
they believe are going to be the most
critical skills for supply chain
professionals.
Um while they are trying to to fill out
the poll about and then we will be
discussing that.
Um
what are your thoughts on that, Laura?
What are the new skills that you think
will become essential for for the supply
chain professionals?
Yeah, I think it will be your ability
also to speak with customers as an
example. So, whether you work in the
supply chain in a company, it it's our
job to make the complex simple. To be
able to go in and say, "What's your pain
point? How can we help you solve that?"
I talked a little bit earlier in the
presentation about, you know, really
supply chain is a revenue stream in the
sense that it helps retain customers. It
avoids the high cost of customer
acquisition. So, being able to have
customer skills, when I started, um you
know, I came from retail. I went into
third party logistics and I thought,
"How hard will this be because, you
know, I I can talk to customers. It
won't really be that different." And it
really is, right? There's a skill set to
empathetic listening, to um to problem
solving in a difficult situation
together that when you work for the same
company, you may not necessarily feel
because you're both incentivized in the
same way, right? Or by the same metrics.
When you both are incentivized in a
slightly different way, how do you
manage through those difficult
situations and and you may some of you
may have heard me speak a couple weeks
ago. That's really the definition of
partnership, right? Is when things go
wrong, which they do. That's things
always go wrong in our business. How do
we solve it together?
Yeah, and how to react to that. Let's
try to have a look to the poll, to the
results and see what the audience think
about that.
So, 66%
vote for problem solving, very aligned
with what you just share with us.
66% also vote for critical thinking that
I I 100% agree is a skills that we need
to have, especially with these powerful
tools that provide uh with just these
solutions, but we need to be able to
challenge the solution, to understand
the solution, and to to yeah, just just
to to bring a solution that makes sense,
at least to bring this common sense to
that solution.
And then, what else we have here? Also,
technological
AI literacy. That probably disconnect
with something you mentioned before.
It's not all only to upskill the
workforce in how to use the the
understand the techniques, but also how
to use the techniques to augment their
role and to contribute more to the
company. So, yeah, very interesting
results and some people, of course,
analytical skills uh still remain a a a
top number one skills, as well as
adaptability or agility to make
decisions. Yeah.
Anything else you want to to add here
regarding the skills?
No, I think I think we captured it.
Thank you. Yeah, so now let's try to
because given this shift uh
what do you think that companies should
do in order to prepare their workforce
for this transition?
Well, I think you should we should just
start by encouraging people to use the
tools. I took a little informal poll of
my some of my leaders here and and I was
surprised how many just haven't really
started using them yet. So, I think, you
know, depending on where you are in your
career journey, some more people are
immersed versus not, but I think, you
know, getting comfortable with the
tools, making sure that you're you're
going on that journey
um is is really the best place to start.
Excellent. Excellent. So, Laura, we have
also one question from one
learner that is more looking at the
future and is asking, "Hey, Laura, what
are the three key
themes, topics that you see when you
think about the future of the supply
chain that come to your mind?"
So, I think we've talked about a little
bit, you know, thinking about continuing
to be resilient, think outside the box.
How can we problem solve? Um you know,
what what needs to be true for the
supply chain continue to be effective?
We always talked about that the supply
chain uh you know, that we talked about
in in 2017 was never mentioned and then
when the pandemic happened, it was on
every single earnings call. So, I think
making sure that the supply chain stays
relevant and and really important for
the future. I think continuing to
develop that next round of talent that
is going to come into supply chain and
that's going to rethink things. So, I
say to my team, "Oh, what have we done
different in warehousing?" And they're
like, "Oh, it's very different. We have
robots now. We have these fancy boards
that show our KPIs." And I'm like, "What
is it different? Don't the pick fronts
look the same? Aren't the KPIs just on a
TV now instead of on the white the
whiteboard that you bought from Office
Depot?" So, I do think this next um
round of supply chain talent needs to
say, "What will things look like, you
know, in the brave new future?" So, I
think that's that's a key thing that we
should continue to talk about in supply
chain because all of us that are in it
now have to help groom that next that
next set of people that are coming. And
then I think, you know, continuing to be
open and think about what should you
think about in supply chain? We should
think about learning from other
industries, as I mentioned, continuing
to challenge ourselves about like where
we need to go. So, thematically, I think
I summarized three things into really
one, which is it it needs to be we need
to be focused on the future and a little
and let go of like how we've always done
it and and things differently cuz I
think that we're adopting the tools, but
as I mentioned earlier, is our mindset
and our culture going along with it or
is this just kind of the next new new
fun thing?
Mhm.
Um I also love your final advice about
continuous to challenge uh ourself and
continue just to being lifelong learners
at the end of the day. Just to continue
challenge, learn, and apply this to to
to the future with this forward-looking
mind. This is wonderful. Laura, thank
you so much for an insightful and
inspiring discussion. And to our
audience, as you reflect on the topics
we covered today from e-commerce to AI
AI transformation and also the workforce
skills,
if you are thinking about how to
continue your learning journey, our
supply chain fundamentals course as part
of the MITx MicroMasters Program in
Supply Chain Management is now open for
enrollment. We have shared more details
in the chat and invite you to explore to
continue investing in your learning
journey. Continue upskilling yourself.
Continue challenging yourself as Laura
just uh shared with us. I would like
also to thank my team, Elise Jonica and
Cara Greeney, for supporting this event
behind the scenes and for sharing
resources through the chat. And finally,
thank you to our global audience for
joining us today. I will invite everyone
to have a big applause for Laura Ricci
today for sharing your experience, your
background. Laura, it has been
wonderful. Thank you. Thank you again.
We value your feedback. So, please to my
audience, if you can share with us your
feedback about this webinar, we really
care about that. We review that and we
try to improve every single time we
provide a new webinar for you. And stay
connect and stay tuned. We will provide
more webinars like this one. So, thank
you everyone for attending today.