Podcast Summary: The Buzz – AI Workflows, Workforce Shifts & the Fight Against Fraudulent Returns

Podcast: Supply Chain Now
Episode Date: February 20, 2026
Hosts: Scott Luton, Rick McDonald
Special Guest: Jimmy Sebastian (VP of AI Products, FourKites)

Overview

This episode of "The Buzz" on Supply Chain Now dives head-first into several urgent, timely developments shaping global supply chain management. Scott Luton and co-host Rick McDonald, joined by AI expert Jimmy Sebastian of FourKites, dissect recent trends and big news, with a special focus on workforce shifts, advances in AI-enabled workflows, and new tactics for combating fraudulent returns. The show balances big-picture strategy with actionable insights for practitioners, mixing industry banter and executive-level thought leadership.

Key Themes & Discussion Points

1. Supply Chain Events & Industry Pulse

[00:34 – 09:54]

• Upcoming Events: Highlights of major supply chain conferences (Manifest 2026, the Never Normal Series, National Supply Chain Day, Modex, Gartner Planning).
  • Rick praises an upcoming panel with CSCOs from Hershey, P&G, Dannon, and 3M ([08:07]).
• Recognition of Supply Chain Workers: Tribute to frontline staff in manufacturing and logistics.
  • Quote: “I think the heroes in all of this are the folks at our factories and logistics centers… showing up every day, all day, 24/7.” — Rick McDonald ([08:55])
• Market Data: US Bank’s Q4 2025 Freight Payment Index showed increased spending despite falling shipment volumes, hinting at capacity constraints ([09:56]).
• Audience Engagement: Real-time reactions and shout-outs from global listeners.

2. AI in Supply Chain: From Hype to Implementation

[01:56 – 03:31, 11:34 – 12:02, 31:49 – 36:05]

• Post-Las Vegas 2026: Industry has moved from exploring AI to actual implementation, shifting focus to system redesign, not just patching problems with “an AI Band-Aid.”
  • Quote: “Tools are advancing, signals are clearer. The gap between vision and execution is narrowing.” — Scott Luton ([02:01])
• Change Management as the Core Challenge:
  • Rick emphasizes that digital transformation is fundamentally a change management challenge, not merely a tech upgrade.
    • Quote: “These are not technology projects per se. These are massive change management initiatives." — Rick McDonald ([03:31])
• Point Solutions vs. Orchestration Platforms: Ongoing debate about whether the future belongs to specialized single-point AI solutions or end-to-end orchestration platforms ([11:34]).
  • Rick leans towards point solutions, especially as AI becomes more agentic.
    • Quote: “I tend to gravitate towards the single point. I'm not sure platforms are long term going to be there...” — Rick McDonald ([11:34])
• Scaling AI Beyond Pilots:
  • Jimmy identifies top three barriers: starting with tech instead of business problems, lacking the right operational and network data, and people/process gaps.
  • Quote: “The pilot purgatory problem is very real. … In my experience, there are three main barriers and honestly none of them are technology.” — Jimmy Sebastian ([31:49])
  • Rick and Jimmy agree: the real pitfalls are missing business cases, the wrong tools, and poor change management ([34:20]).

3. Workforce Shifts: Gen Z and Skilled Trades

[16:16 – 20:25]

• New survey finds 60% of Gen Z are considering skilled trades (vs. <40% in 2025).
  • Touted as bright news for closing labor gaps in construction, manufacturing, logistics.
  • Jimmy underscores that while AI will reshape white-collar work, a robust labor force for physical/technical trades remains mission-critical ([18:08]).
    • Quote: “If Gen Zers bring … digital fluency into the trades … that’s a massive win for logistics infrastructure, warehouses, fleet maintenance.” — Jimmy Sebastian ([18:08])
  • Rick links the trend to a “course-correction” after decades of overemphasizing traditional college as the only viable path.
    • Quote: “It also created a lot of college graduates who are probably overskilled and underemployed in their current assignment.” — Rick McDonald ([19:23])

4. Fraudulent Returns & Reverse Logistics

[22:58 – 24:59]

• New Tech: Clarity, a startup using AI to automatically scan and verify returns, is highlighted as a leap forward.
  • AI can x-ray sealed boxes, detect counterfeits and fraud (9–18% of all returns, depending on product category).
  • Quote: “It's not just an incremental step ... it’s a big leap forward.” — Jimmy Sebastian ([22:58])
• Challenges: Surge in organized fraud, including battery swaps in power tools; POS/refund timing and integration remain pain points ([24:11]).
  • Rick notes, “Gaming the system seems to have its own little set of industry players and industry makers.” ([24:11])

5. Commodity Spike: Cocoa/Chocolate Supply Chain

[26:47 – 30:13]

• Prices soared due to West African weather; cocoa futures spiked then began dropping—but retail chocolate is still expensive due to inventory time lag.
  • Quote: “It’s the classic bullwhip effect playing out in real-time … A single bad harvest season has sent shockwaves through the global markets for about two full years.” — Jimmy Sebastian ([28:05])
• Broader Lesson: Geographic concentration risk (70% of cocoa from West Africa) exemplifies why supply chains must diversify and build visibility ([28:05]).

6. AI Agents, FourKites “Loft,” and the Digital Workforce

[38:04 – 42:17]

• FourKites Loft:
  • Newly launched agentic platform for building and managing digital AI agents (e.g., Tracy for track/trace, Sam for documents).
  • Dramatically cuts workflow automation from months to days, making solutions more accessible for non-tech business users.
    • Quote: “Describe what you need in plain natural language … our AI developer agent, Sophie, converts that into … blueprints for an intelligent workflow.” — Jimmy Sebastian ([38:04])
  • Strength in combining real operational data (“network intelligence”) from millions of shipments.
• Digital Twin & Real-Time Simulation: Rick extols the power of continuous, near-real-time simulation to operate “at the speed of the consumer.”
  • Quote: “It’s all in service of being able to operate at the speed of the consumer.” — Rick McDonald ([41:35])

7. Formal Human-Machine Collaboration Strategies

[43:08 – 47:29]

• Beyond “AI as Peanut Butter”: Don’t spread AI everywhere; create a deliberate plan for when to automate, augment, or leave decisions fully human.
  • Jimmy’s “Three A’s” Framework:
    • Automate: High-volume, low-judgment;
    • Augment: Medium complexity, AI recommends, human decides;
    • Advise: Strategic/high-stakes, AI provides scenarios, humans choose.
  • Quote: “Human-machine strategy is not about pulling AI everywhere. It’s about being deliberate about where you apply it…” — Jimmy Sebastian ([43:08])
• Change Management/Trust: “Glass box” AI (transparent logic) is critical for adoption; “You can't sleep on change management.” — Rick McDonald ([47:29])

Notable Quotes & Memorable Moments

• On Change Management:
  “These are not technology projects per se. These are massive change management initiatives.” — Rick McDonald ([03:31])
• On AI Scaling:
  “The pilot purgatory problem is very real … and honestly none of [the main barriers] are technology.” — Jimmy Sebastian ([31:49])
• On Shifting Mindsets:
  “The real value comes from … shifting our mindset from this is an admin play to this is a very strategic, forward-looking activity.” — Rick McDonald ([45:49])
• On Returns Fraud:
  “Gaming the system seems to have its own little set of industry players and industry makers.” — Rick McDonald ([24:11])
• On Chocolate and Love:
  “Higher prices [for chocolate]? What’s your point? … Keep it coming.” — Rick McDonald ([29:17]) “If prices are high … that means … it’s a luxury item now. Ways to show your love, right?” — Jimmy Sebastian ([30:05])

Timestamps for Key Segments

• [01:56] – AI implementation leap post-Las Vegas
• [03:31] – Change management and upskilling talent
• [08:07] – Preview of “Never Normal” CSCO panel
• [09:56] – US Bank Q4 Freight Index insights
• [13:17] – Introduction of guest Jimmy Sebastian
• [16:16] – Gen Z turns to skilled trades in droves
• [22:58] – Tech (Clarity) fights fraudulent returns
• [26:47] – Chocolate price spike and cocoa supply risk
• [31:49] – Top three barriers to scaling AI
• [38:04] – FourKites Loft: AI agent platform explained
• [43:08] – Human-machine collaboration framework
• [47:29] – Change management & trust: The “glass box”
• [51:05] – Rick’s contact info, upcoming appearances

Tone & Style

Conversational yet expert, blending practical advice (“deeds, not words”) with humor and camaraderie. The episode frequently spotlights the humanity of supply chain work, not just its mechanics, while maintaining a keen eye on technological disruption and innovation.

Connect with the Guests

• Jimmy Sebastian (FourKites): LinkedIn | www.fourkites.com
• Rick McDonald: LinkedIn | rickmcdonald.net | Speaking at Modex Atlanta, April 2026

Final Call to Action

“Your homework is to take one thing you heard from Jimmy or Rick, share it with your team, do something with it. Deeds, not words. That’s how we’re going to keep transforming global supply chain, leaving no one behind.” – Scott Luton ([52:13])

For more resources, events, and the full replay, visit Supply Chain Now.