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AI Poised to Transform Supply Chain Planning, ISG Says

1. AI is transforming supply chain planning for competitive advantages. 2. ISG ranks 22 software providers for supply chain efficiency. 3. Enterprises must strategically adopt AI for operational success. 4. Improved demand forecasting and risk management enhance supply chain resilience. 5. AI can decrease costs, enhancing efficiency in operations.

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Why Bullish?

The increasing integration of AI into supply chain solutions may significantly boost ISG's market presence and revenue, mirroring past examples such as the surge in cloud computing services.

How important is it?

The article discusses AI's impact on supply chains, which directly contributes to ISG's primary offerings and market positioning, indicating a high likelihood of influencing investor sentiment positively.

Why Long Term?

The ongoing shift towards AI adoption will unfold over the next decade, providing sustained growth opportunities similar to trends observed in the tech adoption cycle of the past.

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Software providers harness increasing power of AI to improve enterprise efficiency, collaboration, decision-making, new research says STAMFORD, Conn.--(BUSINESS WIRE)--AI is quickly ushering in a new era of supply chain planning, motivating enterprises to consider the best available strategy and software to gain a competitive advantage with the technology, according to new research from global AI-centered technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).Supply chain challenges remain the same, but the tools for addressing them are changing. The emergence of AI will mark a turning point in how companies build intelligent, efficient supply chains. It will separate the winners from the also-rans.Share The ISG Buyers Guides™ for Supply Chain Planning, a new portfolio of reports by ISG Software Research, provides the rankings and ratings of 22 software providers and their products to support supply chain planning. The research finds that AI and generative AI will have profound effects on both large and midsize enterprises, including retailers, that adopt them for supply chain planning over the next decade. Companies with even moderately long and complex supply chains must decide how and when to apply AI and GenAI to their planning processes. Selecting the right provider will be a key part of the transition. “Supply chain challenges remain the same, but the tools for addressing them are changing,” said Robert Kugel, executive director, Business Research, ISG Software Research. “The emergence of AI will mark a turning point in how companies build intelligent, efficient supply chains. It will separate the winners from the also-rans.” Supply chain planning software helps enterprises maintain resilient operations in several ways, the report says. By improving the accuracy of demand forecasts, often with advanced algorithms and machine learning, it enables retailers and other companies to anticipate customer needs and improve order fulfillment. It can also identify potential risks and disruptions in the supply chain and simulate various scenarios to help companies plan for contingencies. Real-time data and insights help enterprises make informed decisions faster, and improved collaboration keeps organizations aligned across functions and geographies. AI and GenAI have the potential to expand these benefits, substantially reducing the cost and human effort that goes into supply chain operations, ISG says. These technologies can help companies quickly juggle diverse supply and demand objectives and constraints, enabling continuous supply chain planning through even better cross-functional collaboration. Ultimately, AI advances should lead to event-driven analysis and suggestions that trigger actions, allowing enterprises to stay ahead of emerging developments. Similarly, AI and GenAI are beginning to improve enterprise efficiency and agility through sales and operations planning software. This technology is an outgrowth of supply chain planning with a broader scope. It provides a unified approach to balancing strategic financial plans against sales, production, inventory and customer or channel lead times. As with supply chain planning, AI advancements point to the software’s eventual ability to provide event-driven analysis and suggestions. Most enterprises will integrate AI into their supply chain and sales and operations software gradually, starting with relatively low-risk initiatives, the report says. As with other AI adoption efforts, companies can start by preparing their data environments for the requirements of AI. Investments in data capture, orchestration and management lay a foundation for faster analysis and reporting. For its 2025 Buyers Guides™ for Supply Chain Planning, ISG evaluated software providers across four platform categories — Supply Chain Planning, Midsize Supply Chain Planning, Retail Supply Chain Planning and Sales and Operations Planning — and produced a separate Buyers Guide for each. A total of 22 providers were assessed: Anaplan, Blue Ridge, Blue Yonder, Board, Dassault Systems, e2open, FuturMaster, ICRON, Infor, John Galt Solutions, Kinaxis, Logility, Manhattan Associates, o9 Solutions, OMP, Oracle, Pigment, QAD, RELEX, SAP, Slimstock and ToolsGroup. ISG Software Research rates software providers on seven evaluation categories. Five are product-related: usability, manageability, reliability, capability and adaptability. Two are customer experience-related: validation and total cost of ownership and return on investment (TCO/ROI). Providers ranked in the top three for each evaluation category are named as Leaders. Within each platform category, those with the most Leader rankings are named as Overall Leaders. The Overall Leaders of the 2025 Buyers Guides™ for Supply Chain Planning were the following: Supply Chain Planning: Anaplan earned the highest overall rating, followed closely by Kinaxis and Oracle. Anaplan was designated a Leader in six categories, with Oracle and Kinaxis named as Leaders in four. In addition to those providers, Board, Dassault Systems, e2open, o9 Solutions and SAP were also rated Exemplary. Blue Yonder, Infor, John Galt Solutions, Logility, Manhattan Associates, OMP and RELEX were rated Innovative. Midsize Supply Chain Planning: Infor was the highest-rated provider, followed by OMP and e2open. Infor was designated a Leader in five categories, e2open in three, and OMP in two. In addition to the top three providers, John Galt Solutions, Logility and Pigment were rated Exemplary. ToolsGroup was rated Innovative. Retail Supply Chain Planning: Anaplan was the highest-rated provider, followed by Oracle and SAP. Anaplan was designated a Leader in six categories, Oracle in five categories and SAP in two. In addition to those providers, Board, e2open and o9 Solutions were rated Exemplary. Blue Yonder, Infor, John Galt Solutions, Logility, Manhattan Associates and RELEX were rated Innovative. Sales and Operations Planning: Anaplan achieved the highest overall rating, followed closely by Kinaxis and Oracle. Anaplan was designated a Leader in six categories, while Oracle and Kinaxis were named Leaders in four categories each. In addition to those providers, Board, Dassault Systems, e2open, o9 Solutions, Pigment and SAP also were rated Exemplary. Blue Yonder, Infor, John Galt Solutions, Logility, Manhattan Associates, OMP and RELEX were rated Innovative. “To craft effective strategies for meeting their emerging supply chain needs, enterprises need detailed evaluations of software providers that compare the strengths of their products,” said Mark Smith, partner and chief software analyst, ISG Software Research. “ISG research and expertise in supply chain and sales and operations planning software gives organizations insights to make sound decisions about how to move forward.” The ISG Buyers Guides™ for Supply Chain Planning are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments. Visit this webpage to learn more about the ISG Buyers Guides™ for Supply Chain Planning and read executive summaries of each of the four reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting ISG Software Research. About ISG Software Research ISG Software Research provides authoritative coverage and analysis of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its ISG Buyers Guides™ help enterprises evaluate and select software providers through tailored assessments powered by ISG’s proprietary methodology. Visit research.isg-one.com for more information and to sign up for free community membership. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. More News From Information Services Group, Inc.

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