The first part of this two-part series (intended for Boards and executive leadership) showcases the significant opportunities Gen AI presents around managing third-party relationships, including actionable insights and use cases. As well as considering evolving technology trends, this article also discusses the new risks that Gen AI can create for organizations.
Lucy’s journey to work is interrupted by an alert on her mobile. There is abnormal congestion at a supplier’s logistics center that is likely to delay a critical shipment, resulting in the failure to meet their commitment to their top customer. Despite the weak signal on the train, her friendly chatbot is available online and is immediately able to offer a selection of re-routing choices together with the associated costs, carbon emissions and related compliance requirements. Given the recent spate of disruptions in that specific area, Lucy’s CEO had already asked her to locate alternative suppliers following discussions at a recent Board meeting. By using another chatbot to scout around for alternative suppliers, she already made significant progress on this. Its latest features go a step further by generating reports to help with the due diligence of potential suppliers, based on a deeper dive into related data. This Gen AI-based system also offers further potential to track and trace critical subcontractors to be able to include them in future alerts, where relevant.
In this section, we relate the growing opportunities of Gen AI to third-party management using three of the most popular types of use cases in organizations:
Organizations that embrace Gen AI will emerge as the clear winners in leveraging third-party relationships
We hope that this article has been useful to reinforce your understanding of how Gen AI transforms the way in which you manage your extended enterprise. As always, the future is already here, it’s just not evenly distributed. Only a small number of organizations have started reimagining their business strategies, operations and markets to optimize collaborative intelligence by judiciously blending human capital and AI. This has created a significant opportunity for the potential fast followers.
But in this journey ahead, there is no one size that fits all. Each organization must carefully craft out its path for the most strategic use of AI, rather than just emulating others, recognizing the nuances of differing contexts or settings. Those that succeed in doing this well will be able to continually reposition themselves to lead in the marketplace by rethinking how they manage their extended enterprise.
This research-based article has been co-authored by Kristian Park, Global Lead Partner and Dr Sanjoy Sen, Head of Research for the Extended Enterprise team at Deloitte UK. Dr Sen is also a part-time co-director of the Masters program on AI and Business Strategy at Aston University, UK. Other key contributors include Dan Kinsella, Partner, Risk and Financial Advisory, Deloitte & Touche LLP , Daniel Abichandani. Partner, Risk Advisory, Deloitte Canada and Shannon Pym, Senior Manager in the Intelligence as a Service (IntaaS) team at Deloitte UK. The research is cross-sectional in nature and entails collecting data to provide a” snapshot” at one point in time. It does not aspire to be a longitudinal study involving data collection at various points over an extended period of time.
To understand how you can apply the learnings from this article to create distinctive benefits for your organization in your journey towards supply chain resilience, please get in touch with one of the contacts listed below.