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Our method · AI in the supply chain

From Pilot to Production

A six-step method to move supply chain AI out of the demo and into the decisions planners make every day: start from the decisions that carry value, prove each use case in live operations, and let automation grow only as fast as trust is earned.

Built for planning and operations leaders whose AI pilots never reached daily use.

  • 6 stepsfrom decision map to scale
  • 8–10 weeksto a prioritized AI roadmap
  • 12 weeksper pilot wave, in live operations
A gold robotic arm placing a precision component on a dark production surface, with data charts in the background
Why it matters

Most AI pilots work. Few reach production.

The model performs in the demo, then stalls in the handover to a planning team that runs on exceptions, conflicting targets and spreadsheets nobody switches off. The cause is rarely the algorithm. It is a use case chosen for its technology rather than its value, data that was never fit for the decision, and no agreement on who decides when the planner and the model disagree. Our method deals with all three.

It is how our founder brought AI into planning at a global consumer goods multinational, where more than 40% of routine planning decisions now run without manual intervention. We describe the failure pattern in Why AI Pilots Die on the Shop Floor. In our strategy method, AI is usually one program of the masterplan; this method is how that program is delivered.

  1. 01

    Decisions

    Map the recurring decisions and the value at stake.

  2. 02

    Portfolio

    Score use cases and choose where to start.

  3. 03

    Data

    Make the data each decision needs fit for use.

  4. 04

    Prove

    Run pilots in live operations, against a baseline.

  5. 05

    People

    Agree decision rights, overrides and new roles.

  6. 06

    Scale

    Roll out in waves, monitor models, track value.

The autonomy ladder

Automation is earned, one rung at a time

Every use case has a target rung on the ladder. It climbs only when its accuracy and its override rate show that people can trust it.

1

Insight

The model shows what is happening and why. People decide and act.

2

Recommend

The model proposes a decision. People accept, adjust or reject it, and every override is logged.

3

Act with approval

The model prepares the action. A person approves it, often in bulk.

4

Act within guardrails

The model acts on its own inside agreed limits and escalates the exceptions.

Decisions that touch product quality or safety may never climb beyond the second rung, and that is by design.

The six steps

What happens at each step

01

Decisions first

We start from the decisions, not the technology. With planning, operations and finance we list the recurring decisions in the supply chain, such as forecasts, replenishment, allocation, scheduling and supplier orders, and estimate the value at stake in each: service, cost, cash and waste. The question “what can AI do for us?” becomes “which decisions cost us most when they are late or wrong?”

Key questionsWhich decisions are made most often? Where does a poor decision cost most?

Outputs
  • A decision inventory with owners, frequency and value at stake
  • A performance baseline for each decision
02

Use-case portfolio

Each candidate use case is scored on value, feasibility, data readiness and risk. We start with three to five that can show results within a quarter, and set for each the rung of the autonomy ladder it should reach.

Key questionsWhere can AI prove value fastest? How much autonomy is realistic?

Outputs
  • A scored portfolio of use cases
  • First-wave use cases with business case and target rung
  • A build, buy or partner choice for each
03

Minimum viable data

Instead of a multi-year data program, we make the data fit for the chosen decisions: one shared data model for products, locations and partners, quality rules at the source, and a refresh rate matched to the decision. Most tactical decisions need reliable data every few hours, not every second.

Key questionsWhat data does each decision really need? What can we trust today?

Outputs
  • Data requirements for each use case
  • A shared data model and quality rules
  • Named data owners
04

Prove it live

Pilots run inside real planning work, with the planners who will use them, and against a measured baseline. We usually start with predictive models (what is likely to happen) and add prescriptive logic (what to do about it) once the predictions are trusted.

Key questionsDoes it beat the current way of working? Will the team use it?

Outputs
  • Working pilots in live operations
  • Results against the baseline
  • A go, adjust or stop decision for each use case
05

People and machine

We agree who decides when the planner and the model disagree, log every override and review the patterns, and redesign roles so planners spend their time on exceptions and scenarios rather than routine adjustments. Planners and data specialists work as one team, and AI is presented as a way to grow capabilities, not to cut headcount, because that is what makes adoption last.

Key questionsWho owns each decision now? What does the planner’s job become?

Outputs
  • Decision rights for each use case
  • Override and escalation rules
  • Role profiles and a training plan
06

Scale and govern

Proven use cases roll out in waves across sites and product lines. Models are monitored for accuracy and drift, value is tracked monthly in the existing planning review, and funding is released in stages as results come in, rather than through one large business case up front.

Key questionsWhat scales next? How do we keep the models reliable over time?

Outputs
  • A roll-out roadmap in waves
  • Model monitoring with clear ownership
  • A value scoreboard reviewed monthly
Illustrative use case

A mid-size medical devices manufacturer

Composite example

A European manufacturer of surgical instruments and single-use devices, with about €300 million in revenue, two plants and an external sterilization partner. It sells to hospitals directly and through distributors, keeps consignment stock in operating rooms, and manages about 12,000 products with shelf lives and lot traceability.

Service to hospitals is protected with high inventory, and expired stock is written off every year. An earlier AI forecasting pilot performed well in testing but was never used by the planning team.

In a ten-week assessment, the team mapped its decisions, chose four use cases and agreed the rules for people and models. The first pilot wave ran over the following quarter. The exhibits below show how the method takes shape.

An illustrative example for a typical mid-size medical devices manufacturer. Names, figures and timings are indicative and do not describe any specific client.

Exhibit 1

Where the decisions are

DecisionHow oftenValue at stakeData readiness today
Hospital demand forecast, by product and accountWeekly
Consignment stock levels in hospitalsWeekly
Distribution center replenishmentDaily
Sterilization slot planningDaily
Production schedulingDaily
Expiry risk and stock rotationWeekly
Supplier order timing for critical componentsWeekly
Tender volume estimatesMonthly
Three squares: high; two: medium; one: low.
Exhibit 2

Choosing where to start

START HERE Feasibility: data, process and technology → Value at stake → 1 2 3 4 5 6 7 8
First waveLater waves1 Expiry risk and stock rotation · 2 Hospital demand forecast · 3 Sterilization slot planning · 4 Distribution center replenishment · 5 Consignment stock in hospitals · 6 Production scheduling · 7 Supplier order timing · 8 Tender volume estimates
Exhibit 3

The autonomy ladder, today and at month 18

1234 INSIGHTRECOMMENDACT WITHACT WITHIN APPROVALGUARDRAILS 1 Distribution center replenishment 2 Expiry risk and stock rotation 3 Hospital demand forecast 4 Sterilization slot planning 5 Quality and lot release decisionsStays here by design
TodayMonth 18Automated actions run inside limits agreed with planning and quality, and every exception goes to a person.
Exhibit 4

First pilot wave: results against the baseline

Use caseMeasureBaselineAfter 12 weeks
Hospital demand forecastForecast error (weighted MAPE)38%29%
Expiry risk and stock rotationStock expiring before use, % of inventory value per year2.4%1.6%
Distribution center replenishmentOrders released without manual change15%62%
Sterilization slot planningBooked sterilization slots actually used81%90%
Indicative figures. Planner overrides of model recommendations fell from 45% in week 2 to 18% in week 12, the signal that trust was building.
Exhibit 5

An 18-month roadmap in three waves

WAVE 1 · PROVEWAVE 2 · SCALEWAVE 3 · EXTEND Month 0369121518 Assessment and roadmap Shared data model and quality rules Hospital demand forecast Expiry risk and stock rotation Distribution center replenishment Sterilization slot planning Consignment stock in hospitals Production scheduling Supplier order timing Decision rights, roles and training Stage gate: funding released on results
Pilot in live operationsRoll-out and enablersEach wave ends with a stage gate: use cases that meet their targets scale, the others are adjusted or stopped.
Exhibit 6

One scoreboard, reviewed monthly

LayerMeasures
AdoptionShare of decisions taken without manual change; planner override rate and the reasons behind it
Model qualityForecast error and bias; accuracy drift for each model; data quality at the source
Business valueService level to hospitals; inventory and cash; expired stock written off; sterilization capacity used
CapabilityUse cases on each rung of the autonomy ladder; planners trained; time spent on exceptions instead of routine work
What you receive

Four deliverables, from roadmap to running AI

The assessment and roadmap take 8 to 10 weeks; each pilot wave then runs about 12 weeks in live operations.

AI roadmap and use-case portfolio

The decision inventory, scored use cases, target rungs on the autonomy ladder and a roadmap in waves, with business cases.

Data fit for the first wave

A shared data model, quality rules and named owners for the data the first use cases need.

Working pilots with results

Pilots running in live operations, measured against the baseline, with a go, adjust or stop decision for each.

Operating model for people and machines

Decision rights, override rules, role profiles, training and the monthly scoreboard that keeps AI in production.

Is your supply chain AI in production, or still in a pilot?

Connect directly with our team to discuss which decisions would pay back first. Or begin with the three-minute Supply Chain & AI Readiness Assessment.