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Supply Chain Partners — Connecting People, Process, Technology

SCP Insights / Control Towers and AI

When does a Control Tower create value?

Measure better decisions and executed actions alongside visibility and technology.

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Illustrative operations team reviewing delivery risks and linked supply information.
Shared information becomes useful when people can assess an exception and carry out an approved response.

Start with the decision

A Control Tower should help a team decide what needs attention, what can be done and who is authorised to act. A dashboard can make a late shipment visible. Creating value also requires a link to affected customer orders, a feasible response and someone able to execute it.

Our proposed starting point is one recurring operational problem, such as shortages threatening delivery promises. Establish how that decision works today, then test whether a connected workflow improves the outcome after its full costs are included.

What reported deployments tell us

IBM describes an operational cognitive supply chain combining information, planning and decision support. It reports US$160 million in savings since operation began and a reduction in shortage-mitigation analysis from hours to much shorter intervals. This is a report by both the technology supplier and its user. It does not isolate annual net returns from a Control Tower or AI alone. [1]

A Kinaxis account describes Celestica piloting supply optimisation with two customers using live data. Its detailed text identifies US$250,000 in opportunities per customer, with further opportunities when current supply is included. Identified opportunities are not the same as completed sales, collected cash or profit. This vendor-published example is useful precisely because that distinction matters when building a business case. [2]

These selected accounts demonstrate described applications, not a universal return that another client can assume. SCP has not audited their underlying records. Public case studies should lead to questions about scope, baselines, costs and realised outcomes rather than a promise to reproduce their headline numbers.

Traceability is part of making the exception actionable

Operational traceability connects the customer order with relevant stock, inbound supply, shipment and delivery events. The team needs to understand what changed, which commitments are affected and how current the information is. Batch, lot or serial-level detail is added where the use case requires it.

That connection supports the next decision; it does not by itself qualify another supplier, create transport capacity or authorise spending. Product provenance and sustainability evidence may use the same data foundations but can require additional records and a separately defined evidence standard.

AI is a component to justify

A useful workflow may combine event integration, business rules, prediction, optimisation and explanations. Those capabilities should be assessed separately. Generative AI can assist with interpreting an update or drafting an explanation, while the quantities, constraints and transaction permissions need dependable controls.

NIST’s voluntary AI Risk Management Framework provides a reference for considering trustworthiness through design, use and evaluation. It is a governance resource, not proof of supply-chain value or a certification of a proposed solution. [3]

Measure the action and its consequences

  • Operational result: delivery on time and in full, shortages or premium freight, for a clearly defined eligible population.
  • Decision quality: alert timeliness, stale data, false alerts, feasible recommendations and missed exceptions.
  • Execution: adoption, approvals, completed actions and time from detection to recovery.
  • Economics: verified recurring benefits less software, integration, support, change and operating costs; account for implementation separately.
  • Guardrails: inventory, quality and service to other customers, so a local improvement does not simply move the problem.

Build a comparison before claiming a benefit

Agree a baseline and comparison method with finance before supervised operation. A comparable order group or phased introduction can help test what would otherwise have happened, while allowing for changes in demand, product mix and supply conditions. An action log should connect each claimed outcome to the recommendation, approval and executed response.

Keep different value categories separate. Working-capital release is a one-off cash movement; it is not recurring profit. Time released is capacity unless an expenditure change makes it a cash saving. Avoided disruption losses remain hypothetical unless the comparison and attribution support the claim. These are SCP’s proposed measurement disciplines, not benefits already delivered.

Choose a pilot that can earn the next investment

The proposed Customer Promise Protection pilot focuses on an agreed site, business unit or product family. It progresses from data validation and shadow testing to supervised actions, with an operational owner and finance participation. Its timing depends on data readiness and enough observation volume; a short pilot may prove feasibility without establishing annual returns.

The next decision is whether to scale, refine, extend or stop. A discovery workshop can identify a candidate scope and initial data requirements. Workshop arrangements and any fees are agreed before booking, with follow-on work scoped separately.

Sources and evidence notes

Sources checked on 17 October 2026. Research findings and company reports are attributed above; practical recommendations are SCP’s interpretation. The examples do not imply endorsement, partnership or SCP client results.

  1. IBM Supply Chain case study ↗

    Undated webpage; checked 17 October 2026. Supplier and operator self-report.

  2. Kinaxis Celestica case study ↗

    June 2025; see pages 2–4. Vendor-published customer account.

  3. NIST AI Risk Management Framework ↗

    Framework released January 2023; generative AI profile July 2024. Voluntary governance framework; not ROI evidence.

Explore the next step

Discuss a defined supply-chain challenge and agree the evidence needed for a useful decision.

Workshop format and any fees are agreed before booking. Follow-on work requires a separate scope and business agreement.