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<v Instructor>In recent years,</v>

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supply chain efficiency has transformed

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thanks to predictive AI.

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With admin and data reconciliation tasks reduced

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by more than 50%,

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AI agents promise to enhance processes even further.

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A global industrial goods company set out

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to optimize operations across siloed business areas.

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The aim was to pinpoint issues quickly

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and enable greater agility end to end.

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BCG partnered with the company on a multi-year journey,

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first, building a suite of supply chain algorithms

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for scenario planning and decision support,

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then providing those algorithms as tools to an AI agent

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that could observe live conditions,

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plan resolutions, and drive outcomes.

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When the algorithms flagged a supply chain issue,

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the agent determined root causes

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and proposed resolutions to the planning team.

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Digital twins handled the advanced simulations,

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but the agent made the complex planning accessible

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via natural language.

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The result, bottlenecks were identified

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and teams reached the right decision faster,

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and the new capabilities contributed

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to a more than two percentage point increase in EBITDA

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by the second year.
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