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The "We're All Guessing" - Operations Edition

The "We're All Guessing" - Operations Edition

December 4, 2024

Last week, I shared my wild guess on how Generative AI is transforming HR.

This week, it’s time to focus on Operations- the engine that keeps organizations running ((vrrrooooommmm vroooooommmm - I really wanted to write this sorry)

Operations folks often deal with complex, resource-intensive challenges. Here’s my take on how Generative AI is reshaping the world of operations:

1. Streamlining Procurement Processes

Procurement is often a time-intensive function, requiring careful supplier evaluation, contract management, and cost control. Generative AI can change how procurement teams operate by automating routine tasks and providing smarter insights.

  • What this looks like: Generative AI can draft supplier contracts, analyze pricing trends, and even identify potential cost-saving opportunities. For example, a procurement manager could ask AI, “Summarize the key terms of this supplier contract,” or “Generate a list of alternative suppliers based on price and delivery speed.”
  • Why it matters: By automating repetitive processes like request-for-proposal (RFP) creation or contract analysis, Generative AI helps procurement teams save time and reduce errors

2. Smarter Demand Forecasting

One of the toughest challenges in operations is predicting demand accurately. AI has been used for many years to analyze large datasets and create predictive models that improve decision-making. Now Generative Business Intelligence helps not only get smarter demand forecasting, but less data-resources intensive.

  • What this looks like: Generative BI tools can process historical sales data, market trends, and even external factors like weather to forecast demand. Operations teams can ask a dataset, even using their voice: “What’s the projected demand for Product X next quarter?” or “How would a sudden spike in shipping costs affect delivery timelines?”
  • Why it matters: We know Accurate demand forecasting helps avoid overproduction, reduce inventory costs, and ensure timely delivery. With Generative BI, you can go from data to insight to action much faster.

Why This Matters to You (Even if You’re Not in Operations)

Even if you’re not in operations, the impact of AI is so tangible and measurable that you can have it as an example of the power of AI at work.

So go on. Sit today with your fellow Ops folks. And ask them: "What have you been up to with AI lately?" They won't disappoint you.

I'll see you next week