The Rise of Supply Chains That Adapt by Professor Jeannette Song
Professor Song explains how AI is turning supply chains from rigid workflows into adaptive, decision-making systems. When you click “buy now” on online stores, recommendations appear, warehouses spring into action, and packages begin their journey to your door. Behind that seamless experience is a fundamental transformation. Supply chains, once governed by fixed rules and human planning, are becoming AI-driven systems that learn, adapt, and increasingly act on their own. In her book chapter, Reshaping Supply Chains Through AI-Empowered Automation, Jeannette Song, the R.David Thomas Professor at Duke University’s Fuqua School of Business argues that AI is fundamentally changing how supply chains work.“AI is reshaping supply chains in four connected ways: expanding automation across the chain, changing how humans and machines work together,” she said, “raising new questions about privacy and accountability, and pointing toward a future of more autonomous, agentic systems.” The Rise of Supply Chains That Adapt


Eighty percent of humans will engage with smart robots on a daily basis, and one in 20 supply chain managers will manage robots, rather than humans, by 2030, according to Gartner, Inc. Organizations are placing greater emphasis on enhancing the capabilities of their existing workforce by supplementing with robotics due to factors like labor scarcity and rising costs. Smart robots have been identified by chief supply chain officers (CSCOs) as an important investment area, though many acknowledge their organization lacks internal robotics expertise to maximally leverage these innovative technologies. While it won’t be necessary for supply chain managers to have the engineering skills required to build robots, they will need a general technical understanding of what the robots can do and how they work together with other robots and people. This knowledge will be crucial for understanding the business problems robots can reasonably address and provide this guidance to business leaders 