WEBVTT 1 00:00:00.040 --> 00:00:01.538 (videotape whirring) 2 00:00:01.538 --> 00:00:04.121 (upbeat music) 3 00:00:09.750 --> 00:00:12.210 I'm somebody who loves to plan ahead. 4 00:00:12.210 --> 00:00:15.960 In fact, I'm the designated vacation planner for our family, 5 00:00:15.960 --> 00:00:19.170 making sure we create amazing memories together, 6 00:00:19.170 --> 00:00:20.700 learn about different cultures, 7 00:00:20.700 --> 00:00:22.773 and also get good value for money. 8 00:00:23.640 --> 00:00:25.950 These books from my trips in Greece 9 00:00:25.950 --> 00:00:27.750 and other locations remind me 10 00:00:27.750 --> 00:00:29.300 of the recent travels together. 11 00:00:30.210 --> 00:00:31.200 Experience has taught me 12 00:00:31.200 --> 00:00:33.930 that planning out a detailed itinerary in advance 13 00:00:33.930 --> 00:00:36.570 is key to a successful trip. 14 00:00:36.570 --> 00:00:38.700 But being flexible once you're on the ground 15 00:00:38.700 --> 00:00:43.700 is also important because no trip ever goes exactly to plan. 16 00:00:44.070 --> 00:00:46.260 And it's the same for supply chains. 17 00:00:46.260 --> 00:00:47.460 Long-term planning 18 00:00:47.460 --> 00:00:51.750 and strategy underpin every large capital investment, 19 00:00:51.750 --> 00:00:54.390 and supply chain leaders work to ensure 20 00:00:54.390 --> 00:00:55.590 that they're meeting demand 21 00:00:55.590 --> 00:00:58.590 to support growth in a cost-efficient way 22 00:00:58.590 --> 00:01:00.690 that makes good use of the firm's assets, 23 00:01:00.690 --> 00:01:03.630 but it's also vital to continuously assess 24 00:01:03.630 --> 00:01:06.423 what is working well and to react to disruption. 25 00:01:07.470 --> 00:01:10.320 Supply Chain AI by BCG X is a collection 26 00:01:10.320 --> 00:01:13.950 of AI-enabled capabilities that offer a middle ground 27 00:01:13.950 --> 00:01:16.680 between complex custom builds 28 00:01:16.680 --> 00:01:20.010 and inflexible off-the-shelf solutions. 29 00:01:20.010 --> 00:01:21.090 It includes solutions 30 00:01:21.090 --> 00:01:23.370 that enhance supply chain capabilities 31 00:01:23.370 --> 00:01:26.160 such as end-to-end planning, advanced network design 32 00:01:26.160 --> 00:01:28.830 and optimization, or use of digital twins 33 00:01:28.830 --> 00:01:30.360 to find efficiencies. 34 00:01:30.360 --> 00:01:32.730 These are based on proven approaches, powered 35 00:01:32.730 --> 00:01:35.310 by reusable code base and data elements, 36 00:01:35.310 --> 00:01:37.380 and delivered by dedicated teams. 37 00:01:37.380 --> 00:01:39.930 Yet they are also highly customizable. 38 00:01:39.930 --> 00:01:41.640 Time and again, we found 39 00:01:41.640 --> 00:01:43.440 that success doesn't just rely 40 00:01:43.440 --> 00:01:46.140 on advanced analytics capabilities. 41 00:01:46.140 --> 00:01:48.540 It's about applying the data in a way that is relevant 42 00:01:48.540 --> 00:01:51.450 to unique business realities, whether that's the way 43 00:01:51.450 --> 00:01:54.420 a particular organization deploys inventory 44 00:01:54.420 --> 00:01:57.330 or how it collaborates with raw material providers. 45 00:01:57.330 --> 00:02:00.270 Our experience shows the holistic transformation 46 00:02:00.270 --> 00:02:04.200 that comes from using BCG X's Supply Chain AI can lead 47 00:02:04.200 --> 00:02:08.490 to a 10% to 20% decline in costs, such as transportation 48 00:02:08.490 --> 00:02:10.290 or inventory write-offs. 49 00:02:10.290 --> 00:02:11.790 It has also led to a 5% 50 00:02:11.790 --> 00:02:14.640 to 15% increase in customer service levels-- 51 00:02:14.640 --> 00:02:16.560 supporting growth-- 52 00:02:16.560 --> 00:02:19.260 and it can improve manufacturing efficiency 53 00:02:19.260 --> 00:02:22.590 by creating the optimal stable production plans. 54 00:02:22.590 --> 00:02:23.880 There's huge potential 55 00:02:23.880 --> 00:02:26.550 for further efficiencies in this area. 56 00:02:26.550 --> 00:02:29.700 AI agents, for example, can act autonomously 57 00:02:29.700 --> 00:02:32.580 to handle communications and commitments between producers 58 00:02:32.580 --> 00:02:35.460 and customers, taking the necessary actions 59 00:02:35.460 --> 00:02:39.270 to ensure the right inventory is sent at the right time. 60 00:02:39.270 --> 00:02:41.670 Even though human oversight is still vital, 61 00:02:41.670 --> 00:02:43.560 there is less need for long email chains 62 00:02:43.560 --> 00:02:46.560 confirming orders via complex spreadsheets, 63 00:02:46.560 --> 00:02:49.320 and it frees up time for supply chain planners 64 00:02:49.320 --> 00:02:52.680 to focus on more value-added strategic tasks. 65 00:02:52.680 --> 00:02:55.350 Speaking of which, I'm hoping an agent will do more 66 00:02:55.350 --> 00:02:57.420 of my vacation planning next year, 67 00:02:57.420 --> 00:03:01.036 and that means I'll have more time to finish these books. 68 00:03:01.036 --> 00:03:03.619 (upbeat music)