150 FEATURE the Japan Research Institute to link data across its supply chain and apply advanced demand forecasting models. Using Microsoft Azure cloud tools and AI algorithms, the system analysed point-of-sale data and even generated customer personas to predict buying patterns. The first notable find of the trial was that people made far fewer mistakes – 31.8 per cent fewer – when they used the demand forecast model to place shop orders, compared to when they ordered on their own. The improved accuracy also helped to reduce food waste. Before the trial, overall food waste across Super Hosokawa’s different product sections was recorded at 0.52 per cent. This dropped to between 0.13 and 0.20 per cent after using the demand forecasting model. These improvements translate to cost savings and more efficient operations, directly addressing pain points exacerbated by supply uncertainty, Many retailers are also looking to go beyond generative AI and move towards a truly intelligent, autonomous supply chain. “Agentic AI represents a shift from passive analytics to proactive decision-making systems,” says Miller. “Unlike traditional analytics or even generative AI, agentic AI is designed to act towards defined goals. These agents don’t just predict outcomes, they can dynamically adapt plans and execute decisions with minimal human oversight, all while pursuing objectives like cost minimisation or service maximisation.” Agentic AI is revolutionising supply chains by enabling faster and more efficient decision making through goal-based optimisations. Enhanced automation allows AI agents to autonomously manage routine activities, reducing manual labour and minimising errors. Proactive decision-making with advanced predictive analytics helps anticipate disruptions and recommend pre-emptive actions. Real-time monitoring and visibility ensure immediate response to anomalies, reducing downtime. In practical terms, agentic AI could autonomously manage many routing supply chain activities and constantly optimise them. For instance, an AI agent might automatically reroute shipments, adjust inventory levels or negotiate supplier orders in response to real-time changes without waiting for human approval. This is a leap towards goal-driven automation. Such agents use advanced predictive analytics and then trigger proactive adjustments to keep the supply chain on track. They also offer real-time monitoring and visibility, alerting stakeholders immediately to anomalies and handling many issues instantly so that disruptions cause minimal downtime. “The combined power of generative and agentic AI will redefine strategic value and productivity derived from technology, incorporating more advanced decisionmaking processes with greater accuracy and speed,” says Miller. “In a world of constant uncertainty, having an autonomous, selfadjusting supply chain is a game changer. The new mantra is proactive adaptability: rather than just responding faster to each crisis, let the AI anticipate and navigate around many issues entirely. It’s a vision of the future where agility and resilience are built-in features of operations, not heroic efforts every time something goes wrong.” As with any organisational change, retailers must consider several key factors to successfully transition to these AI technologies. “Organisations should focus on three pillars: data readiness, ecosystem collaboration and workforce enablement,” says Miller. “Most importantly, organisations must foster a culture of continuous learning to empower employees to work alongside AI.” Furthermore, efficient use of generative and agentic AI requires thorough preparation which, according to Miller, involves “unifying siloed data sources and investing in scalable cloud platforms”. To achieve this, Miller suggests retailers use Microsoft’s Azure OpenAI Service combined with solutions from a partner such as Blue Yonder. Taking this approach will allow companies to embed generative AI into their supply chain workflows and enhance everything from inventory planning to supplier collaboration. Blue Yonder has launched new AI-driven cognitive solutions on the Blue Yonder Platform, “ The combined power of generative and agentic AI will redefine strategic value and productivity derived from technology” Photo: iStock/alvarez
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