154 INTERVIEW Automate and adapt As organisations seek resilience in a changing world, Kyndryl’s Rafa Mercado reveals the new rhythm for global supply chains BY AMBER HICKMAN Global disruptions and increasing trade tensions from tariffs and conflict have made resilience the new priority for supply chains across a variety of sectors. According to Rafa Mercado, vice president, consumer and travel market leader at Kyndryl, “supply chains once optimised purely for cost and speed are now being redesigned for flexibility and security, balancing efficiency with risk management amid sanctions, cyberthreats and political instability.” As part of this new era of supply chain transformation, AI-powered tools are helping businesses to automate operations. “AI-driven analytics predict demand and optimise inventory with greater accuracy, augmenting human decision-making at scale,” says Mercado. “Meanwhile, agentic AI systems can dynamically reroute shipments or adjust orders with minimal human intervention, enabling businesses to inch towards a ‘selfhealing’ supply chain that adapts in real time.” Organisations should consider three key steps when developing an intelligent supply chain, starting with a clear digital strategy. “A transformation must be anchored to business goals from day one,” says Mercado. “It’s critical to define what value a new supply chain model should deliver and get input across the organisation. This vision guides all other decisions and prevents aimless technology experimentation.” Second, firms need to unify their data to ensure that any intelligent solutions can operate efficiently. “Siloed projects and poor data governance are common stumbling blocks in supply chain overhauls,” says Mercado. “Adopting flexible, cloud-based architectures such as a hybrid Microsoft Azure setup that spans cloud and local sites can help unify data across channels and geographies, enabling real-time visibility.” Then, as organisations progress through the transformation process, it is vital that they maintain the human-technology balance. “Keeping a human in the loop is critical as AI is adopted,” says Mercado. “While AI can automate and accelerate processes, humans provide judgement, intuition and ethical oversight. In fact, experts emphasise that humans act as a safety net, catching issues or anomalies that algorithms might miss and ensuring AI outcomes align with business values. “Furthermore, maintaining a humantechnology balance also contributes to workforce engagement and trust. Involving employees in the AI rollout helps to demystify the technology and reduce fears. This collaborative mindset ultimately yields a more innovative and adaptive organisation.” Kyndryl and Microsoft are currently working together to accelerate digital transformation for enterprises by enabling hybrid cloud models. “Kyndryl has expanded its distributed cloud services to leverage Microsoft’s Azure Arc and Azure Local platforms, which bridge “ Tapping into an ecosystem ensures you’re using best of breed tools and knowledge” Photo: iStock/Pornpimone Audkamkong
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