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The recommended scenario proved to be a sophisticated blend of all alternatives, strategically applied across various ingredients and finished goods. The solution accounted for multiple suppliers, both local and international, and considered pricing and competitor activities.

Within a remarkably short time frame, the team reviewed and approved the recommended scenario. The revised sales forecast, inventory targets, production plan, purchasing plan and pricing strategy were swiftly integrated, and the company gained a significant competitive advantage over competitors who might have faltered following such a substantial supplier shutdown.

This case study exemplifies the importance of leveraging AI now to be ready for times of crisis. Through the innovative use of technology, the Australian food manufacturer not only averted potential disaster but also emerged with a revised strategy that aligned with their business goals. This was only possible because they had already invested in creating an AI-driven platform to support their business functions.

This successful adaptation underscores the transformative potential of AI-driven analytics in guiding businesses towards data-informed decisions, ensuring their ability to weather unforeseen challenges and thrive in an everchanging marketplace.

The next disruption is just around the corner – and it doesn’t need to be as significant as a global pandemic. The world remembers it took just one ship in March 2021 to upend global supply chains, and more localised incidents can be just as impactful on a company or sector level.

Professor Ben Fahimnia Chair of Supply Chain Management The University of Sydney Business School.

Elton Brown Senior Consultant in Supply Chain Management

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