Episode Overview

Episode Title: SCN Best of 2025: AI, Human Ingenuity, and the Next Era of Supply Chains
Podcast: Supply Chain Now
Host(s): Scott Lewton, Tevin Taylor
Guest: Gaurav Malhotra, Partner & Supply Chain Technology Leader, EY
Published: December 24, 2025

This episode spotlights the transformative implications of artificial intelligence (AI) in supply chain management, combining big-picture trends and granular, hands-on examples. Gaurav Malhotra, a veteran supply chain technologist, discusses applications, myths, workforce transformation, and how human ingenuity remains central—even amid the rise of autonomous systems. The conversation is rich with actionable insights, focused especially on overcoming AI adoption hurdles and envisioning the industry’s next five years.

Key Discussion Points & Insights

1. The Ubiquity and Opportunity of AI

• AI as the "Next Internet": Gaurav opens by predicting that AI will soon be as integrated into daily workflow as the internet is today, automating prompts and actions that drive core supply chain processes.
  “This technology is going to be parallel to Internet for people like us... We're going to have a bunch of prompts that we will either send out or will be sent out on our behalf.” (00:00, Gaurav Malhotra)
• Practical Impact: AI is no longer just hype; it’s already delivering concrete results, from route optimization to predictive maintenance.

2. Best Practices for AI Adoption—Avoid "Pilot Paralysis"

• Foundational Elements:
  • Governance, risk, security, trust: Must be tackled enterprise-wide, not just at the supply chain level.
  • Data Readiness: AI can work with imperfect data—waiting for perfect data only stalls progress.
    Quote: “There's a common misconception that you've got to have your data in a pristine state... so not true.” (15:31, Gaurav Malhotra)
  • Continuous Improvement Loop: AI is not one-and-done; establish processes for ongoing evolution and learning.
• Pilot Purgatory: Many organizations stall at experimentation; success requires structured scaling and alignment with enterprise strategy.
  Quote: “You have to have an enterprise-wide strategy around those [foundations] when it comes to AI in particular.” (20:08, Gaurav)

3. Humanitarian Logistics: A Real-World Supply Chain Story

• Gaurav recounts a personal experience evacuating from a tsunami in Kauai—demonstrating the vital, often unseen, logistics required during disasters.
• “There’s a supply chain behind everything... even when you’re reacting to natural disasters, that supply chain has to perform, fast.” (07:23, Gaurav)

4. Busting AI Myths in the Supply Chain

• Myth #1: AI is a cure-all — Reality: Must be targeted to the appropriate problems and scaled methodically.
• Myth #2: Only for big players — Reality: Small and mid-sized organizations often benefit more quickly, as AI helps level the playing field.
• Myth #3: Data must be perfect — Reality: AI excels in processing messy, incomplete, or unstructured data.
• Quote: “If you wait on your data to be perfect, you’re never going to get around to driving transformation.” (16:56, Scott Lewton)

5. AI Applications Delivering Immediate Impact

• Logistics & Route Optimization: UPS and others use AI for real-time routing, reducing fuel costs and improving driver utilization.
• Predictive & Preventive Maintenance: AI-driven monitoring cuts downtime and extends equipment life.
• Training & Shop Floor Guidance: AI virtual assistants support front-line workers with tailored guidance.
• Exception Management: Example cited—AI reducing warehouse exceptions from 14,000 per month to 27. “They took that 14,000 number down to 27...people had more time, less overtime, better weekends. It’s remarkable.” (25:05, Scott)

6. The Move to Agentic AI and the Autonomous Supply Chain

• Agentic AI: Goes beyond chatbots or prediction—can autonomously act on recommendations and coordinate across systems.
  “In the case of agentic versus [other AI], [agentic] has the ability to act on your behalf… You’re left with just the very, very complex exceptions.” (27:48, Gaurav)
• Dynamic Network Resilience: AI helps organizations quickly reconfigure transportation or supply networks in response to disruptions, tariffs, or geopolitical shifts. “This technology is enabling not just analysis, but direct action—constantly optimizing, no matter the challenge.” (30:24, Scott)

7. Humans at the Center—Workforce Transformation & Value Amplification

• AI Augments, Not Replaces: Humans shift towards creative, critical thinking, and new value creation while automation removes repetitive work. Quote: “It’s going to leave humans for creative, critical thinking—unique things that are highly complex.” (32:22, Gaurav)
• Upskilling & Reskilling: Investments in education, AI literacy, prompt engineering, analytics, and especially change management are critical for future readiness.
• Cultural Change: Needs to be driven from the top and throughout the organization. “Change is never easy, not embraced by everybody. But this one is here to stay.” (37:08, Gaurav)

8. Putting People at the Center of AI Implementations

• Inclusion & Storytelling: Early involvement of all stakeholders—from planners to frontline workers—accelerates adoption and minimizes resistance. “If you bring operations, sales, marketing, the planners, frontline employees into the pilot or design phases, they’ll embrace it.” (46:05, Tevin)
• “Do with, not to”: Communicate transparently, use stories to inspire buy-in, and avoid creating fear among teams. “Do it with your people, not to your people. Communicate. Communicate. Communicate.” (45:07, Scott)

9. Five-Year Crystal Ball: AI’s Transformative Impact

• The Shift: AI will orchestrate highly autonomous, cognitive supply chains; humans will focus on expansion, new markets, and strategic differentiation. "Within five years...this technology in almost every case may become more intelligent than humans, if you will. And that's a scary thing to kind of think through, but that's the evolution." (47:29, Gaurav)
• Practical Optimism: The next era is about resilience, adaptability, and bold new business models—not just cost-cutting. “Supply chains have to evolve from this reactive, fragile approach to a self-healing, resilient, autonomous supply chain.” (50:22, Tevin)

Notable Quotes & Memorable Moments

• On Data Imperfection:
  “If you wait on your data to be perfect, you’re never going to get around to driving transformation.” (16:56, Scott Lewton)

• On Pilot Paralysis:
  "Pilot purgatory… For companies to leverage the full potential, there has to be a very structured approach." (19:01, Gaurav Malhotra)

• On AI Empowering Smaller Players:
  "It should level the playing field where small and mid-sized companies can use it to compete against the big companies." (17:15, Tevin Taylor)

• On the Human Element:
  “AI enables us to move the supply chain... and most importantly, it amplifies human value, does not replace it.” (53:15, Tevin Taylor)

• On Change Management:
  "If you don't like change, you're not going to like extinction either." (35:02, Tevin Taylor quoting Fred Smith)

• On Cultural Investment:
  “This one is here to stay. In three years it will be parallel to the Internet—we’ll wake up to prompts and automations as routine as email today.” (37:08, Gaurav)

Timestamps for Key Segments

• Opening & Episode Theme - 00:00–03:10
• Gaurav’s Background & Value of Trade Compliance - 02:20–05:34
• Humanitarian Logistics in Disaster Response - 07:23–08:50
• EY’s Approach to Holistic Supply Chain Value - 09:51–11:29
• Major Trends: Proactive Over Reactive Supply Chains - 13:16–14:46
• Top AI Myths & Misconceptions - 15:31–17:15
• Pilot Paralysis & Foundational Elements - 18:22–20:52
• Immediate, Tangible Outcomes from AI - 22:55–26:36
• Agentic AI and End-to-End Orchestration - 27:48–30:24
• Ensuring Humans Remain Central - 32:22–35:02
• Upskilling/Reskilling and New Skillsets for AI Era - 37:08–41:17
• Keeping People at the Center: Practical Advice - 43:25–46:05
• Five Year Outlook: The Next Era of Supply Chains - 47:29–50:22
• Key Takeaways & Closing Reflections - 52:38–53:15

Actionable Takeaways

• Start with problems, not solutions: Identify business challenges and opportunities, then match technology accordingly.
• Scale deliberately: Move from pilots with clear governance and enterprise-level alignment.
• Inform and involve the workforce: Early participation and communication are vital for successful adoption.
• Prioritize upskilling and cross-functional learning: Make AI and change management literacy standard for all.
• Stay practical and optimistic: AI is a force multiplier, especially for those ready to lead, learn, and adapt.

Tone and Language

Conversational, pragmatic, and forward-looking. The episode balances technical insight with relatable stories and a touch of dry humor, making complex ideas digestible for both industry insiders and curious newcomers.

This summary captures the core of a wide-ranging discussion, offering a roadmap for supply chain professionals seeking to not just survive, but thrive in the new era of AI-powered supply chains.