The Role of AI and Advanced Analytics in Modern Supply Chains

In today’s rapidly evolving business landscape, supply chains are no longer just about moving goods from point A to point B—they are the backbone of business resilience, agility, and growth. The convergence of artificial intelligence (AI), advanced analytics, and cloud technology is revolutionizing supply chain management across industries, enabling organizations to make smarter decisions, reduce costs, and build greater resilience against disruption. At Publicis Sapient, we help clients unlock the next level of value by transforming traditional supply chains into intelligent, data-driven value chains.

Traditional supply chains have often been fragmented, reactive, and siloed, leading to inefficiencies, rising costs, and limited visibility. The introduction of AI and advanced analytics changes this paradigm by:

• Predicting demand and optimizing inventory: AI models analyze historical data, market trends, and external signals to forecast demand with greater accuracy, reducing both stockouts and excess inventory.
• Enhancing end-to-end visibility: Real-time data integration across suppliers, logistics, and sales channels enables proactive risk management and faster, more informed decision-making.
• Automating routine tasks: Intelligent automation streamlines procurement, order management, and logistics, freeing teams to focus on strategic initiatives.
• Enabling scenario planning and resilience: Digital twins and AI simulations allow organizations to model the impact of disruptions and test response strategies, building resilience against market volatility.

The migration from legacy, on-premise systems to cloud-based platforms is a critical enabler for deploying AI and advanced analytics at scale. Cloud technology provides the scalability, flexibility, and accessibility required to harness the full potential of data and AI. For example, Chevron’s supply chain transformation demonstrates the power of cloud migration:

• Unified Data Foundation: By moving over 200 data pipelines and integrating data from diverse sources into a central cloud platform, Chevron enabled more than 400 users to access and analyze supply chain data in real time.
• Accelerated Analytics Deployment: The cloud platform allowed Chevron to quickly deploy advanced analytics and AI services, which would have taken significantly longer to implement on-premise.
• Operational Efficiency and Cost Reduction: The migration minimized support and disruption costs, improved the ability to scale, and reduced legacy system expenses. Queries now complete 45% faster, and the platform supports agile development and rapid deployment of new capabilities.

A major downstream energy company partnered with Publicis Sapient to unify its data and align business outcomes across a complex value chain. By implementing a custom Azure-native analytics platform, the company gained real-time insights, improved collaboration, and reduced inventory, leading to a 10% profitability improvement and the ability to capture previously invisible opportunities. Automated business functions saved time and increased operational efficiency, positioning the company to deliver $0.5B in value by 2025.

Retailers face the dual challenge of meeting rising customer expectations and managing cost pressures. AI-driven solutions—such as automated warehouse picking, omnichannel fulfillment optimization, and real-time control towers—enable retailers to:

• Reduce operational costs
• Improve inventory accuracy
• Deliver seamless customer experiences (e.g., buy online, pick up in store)
• Respond quickly to market shifts and supply chain disruptions

For example, Publicis Sapient helped a leading retailer migrate to a cloud-based commerce platform, resulting in a 50% reduction in development costs, 80% decrease in on-premise expenses, and a $30M lift in holiday sales. The new platform enabled rapid enhancements and experimentation, supporting a more agile and customer-centric supply chain.

A global consumer products firm worked with Publicis Sapient to launch a digital-first operating model and transform its MarTech infrastructure. By integrating data and AI across 147+ brands in 75 countries, the company improved consumer data capture, accelerated time-to-market, and increased development efficiency by 50%. This transformation empowered the business to respond quickly to changing market conditions and customer needs.

Publicis Sapient’s approach to supply chain transformation is rooted in:

• Identifying high-value AI opportunities: We assess your supply chain’s readiness and pinpoint where AI and analytics can deliver the greatest impact—whether in forecasting, fulfillment, transportation, or risk management.
• Implementing scalable solutions: Leveraging cloud-native platforms, we design and deploy AI-driven tools that integrate seamlessly with your existing systems, ensuring rapid time-to-value and minimal disruption.
• Measuring business impact: Our data-driven approach tracks key performance indicators—such as cost savings, efficiency gains, and customer satisfaction—to ensure that every initiative delivers measurable results.

Our comprehensive suite of solutions includes supply chain strategy, connected planning, intelligent fulfillment, transportation optimization, warehouse automation, and supply chain AI & data engineering. We combine deep industry expertise with advanced technology to help clients turn their supply chains into strategic assets.

The next generation of supply chains will be defined by their ability to adapt, recover, and thrive in the face of disruption. By embracing AI, advanced analytics, and cloud technology, organizations can:

• Build resilience against market volatility
• Optimize costs and protect profitability
• Deliver superior customer experiences
• Unlock new opportunities for growth

With over 30 years of digital transformation expertise and a global team of 20,000+ experts, Publicis Sapient is your partner for end-to-end supply chain transformation. Ready to unlock the next level of value in your supply chain? Connect with us to start your journey toward a smarter, more resilient future.

Relevant Links

• Case Study: Chevron’s Supply Chain Cloud Transformation
• Case Study: Chevron’s Supply Chain Cloud Transformation
• Industry Deep Dive: Cloud Supply Chain Transformation in Retail
• Transformation de la Supply Chain dans le Retail Européen : L’Avantage du Cloud, de l’Intégration des Données et de l’IA (Europe)
• Transformación de la Cadena de Suministro en Retail: El Rol Estratégico del Cloud en América Latina (LATAM)