Lately, more than at any other point in my career, I am being asked one question, and it goes something like this: “We know we need a supply chain technology strategy to modernize our tools and likely embrace AI, but where do we start?”
It’s a fair question. Navigating the supply chain technology landscape was already challenging. The relentless pace of technology innovation, which has only been compounded by AI, has created a seismic shift in the supply chain community.
Companies know they need to modernize, want to take advantage of AI-enabled opportunities, and realize their technology stack is a key part of that effort. What is less clear is why or where to begin.
If this sounds familiar, I’ll hope you’ll keep reading as I do my best to answer to these critical questions. Keep in mind: This applies equally for any supply chain modernization initiative, with or without AI capabilities.
It starts with strategy, not technology
Ironically, a technology-first mindset will fail you when it comes to technology modernization. Especially now as each vendor claims to deliver faster results, better insights, the latest AI-driven advantage, and—let’s not forget—quicker ROI. The supply chain technology landscape is a crowded, constantly changing space. The traditional lines are blurring, often making it difficult for some to parse through all the options.
My first piece of advice is this: Start with why. Revisit your overall company strategy and digital transformation strategy to make sure your supply chain and operations strategy are in sync. What does your company want to be? What direction are you going in? What’s working? What’s not? What is your transformation vision? What will success look like? And how does your supply chain strategy help you meet these company goals and objectives?
This exercise will help you size the gap between where you are today, where you want to be, and how you prioritize improvements. Only once you’ve assessed your current state can you build a confident blueprint for the path forward. It’s transformation first, not technology.
Defining future-proof requirements
A shiny new platform or agentic AI may be the enabler you require for that next stage of growth. But until you step back, see your supply chain technology strategy holistically, understand it, articulate it and quantify it into discrete business and solution requirements you’ll be in a hurry to get nowhere fast.
I can’t stress this enough: How well you define your future state requirements and prioritize them into a hierarchy of needs will determine the success or failure of your supply chain transformation.
Why? Context matters. When defining your future state requirements and roadmaps, it’s essential to account for your strategic goals, the complexities of your industry, consider the factors that originally drove design choices during the implementation of your legacy supply chain systems, and have a clear vision of the future.
- Your business and supply chain strategy matters: Technology decisions should align with your strategy and enable your target operating model
- Your industry matters: Competitive pressures and regulatory requirements shape what “modern” looks like for you
- Your processes and policies matter: How your company operates may need to change before a new tool can enable faster, more accurate and more automated decision-making
- Vendor capabilities matter: Every provider promises speed and agility, but strengths vary widely. Understanding those differences is essential
Choosing the “right” technology
Choosing a tool is less about finding the newest or most capable platform and more about finding the best fit for your company.
With an intentional revisit to your strategy and a carefully prioritized list of your future state requirements, selecting the right technology solution may be easier than you think. A structured and coherent list of requirements turns complexity into clarity.
Here’s a few critical success factors to consider when planning a vendor selection and evaluation:
- Business alignment: Choose solutions that support your future state target operating model
- Objective evaluation: Use data and develop a scoring process to separate marketing promises from actual capability
- Speed to value: Build a selection process that gets to implementation faster and with fewer surprises
- Scalability: Select tools that can evolve as your model, market and objectives shift
A well-defined and executed vendor selection process should align stakeholders and build decision confidence. This, plus your company’s ability to create inertia (more on that in the next section), has a direct correlation to your ability to deliver the promised ROI and operational expectations. When executed properly, your decision becomes a catalyst for growth rather than a reaction to a limitation.
Delivering real value with digital transformations
It may go without saying, but even the best supply chain technology is only as useful as the process and people it enables. That’s why your internal ability to create inertia matters. From aligning your technology strategy and KPIs to defining future state requirements and selecting a tool, your company culture, business processes, and technical landscape must be change-ready. Further, it needs to be clear how your processes and policies must change in coordination with these efforts.
In today’s competitive landscape, the benefits of modernization have a half-life. Slow, siloed technology implementations often forfeit the desired competitive advantage.
Getting started with any supply chain technology
Strategy. Context. Selection. This three-part approach is exactly how my team and I help our clients avoid misaligned technology investments, stalled progress, blown budgets, and frustrated users.
Whether you’re looking for unbiased, vendor-neutral input or just a partner to share the workload, Spinnaker SCA is here to help. Our Supply Chain Technology Strategy & Selection solution ensures your roadmap reflects your business priorities, industry context, and the capabilities that matter most. Whether you’re in the solutions market for AI, Advanced Planning, Order Management, Transportation, or Warehousing, we provide the clarity and confidence you need to move forward without stalling out or second guessing your decisions.
Today’s landscape dictates that modernization isn’t optional, but that doesn’t mean it has to also be overwhelming. Start with a strategy-driven, context-aware reality check. Then build your roadmap – not just for today, but also for tomorrow and the day after.
