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How Avantor and Aera Technology Are Operationalizing Decision Intelligence, Insights from ARC Advisory Group’s 30th Leadership Forum

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How Avantor And Aera Technology Are Operationalizing Decision Intelligence, Insights From Arc Advisory Group’s 30th Leadership Forum

During the 30th Annual ARC Advisory Forum on February 10th, the session “The New Frontier of Operations and Supply Chain” offered 1.5 hours of valuable learning. It provided a platform for professionals to share their experiences and insights about the future of supply chains. The session delved into real-world end-user case stories, high-level discussions on implementing innovative solutions, and integrating AI into operational processes.

How Avantor Got Started on Its Decision Intelligence Journey

Jared Guckenberger was the end-user presenter during the session, showcasing the results of implementing Aera Technology’s Decision Intelligence solution. Jared is the VP of Global Supply Chains at Avantor. Avantor provides mission-critical materials and tools to life science companies, biopharmaceutical producers, and medical R&D organizations. Avantor has a global reach of 175 countries, 40 distribution centers, plus various college closet storage sites.

Scale:

10,000 supplier/ source combinations
250,000 SKUs sold per year
1.5 SKU-location combinations
10M+ purchase + customer orders per year

Jared shared Avantor’s supply chain challenges, including very high transaction and data volumes. Inventory challenges: too much, too old, and too little at the same time (excess, write-offs, and stockouts). Jared expressed the need to sense, decide, and act faster: integrate better with suppliers (many are low-tech, non-EDI). Many solutions must be “change-ready”, scalable, and usable by many roles, not fully autonomous AI.

Jared played a pivotal role in establishing a working relationship with Aera Technology to address the company’s supply chain challenges by utilizing Aera’s Decision Intelligence solution. It’s not only “Agentic Ai but also classic machine learning, decision logic, which are all orchestrated into repeatable decision processes. The core idea of Decision Intelligence is that it lets the system make thousands of routine decisions humans don’t have time for, rather than “smarter than humans” decisions.

At the start, Avantor focused on three reasonable target skill areas, focusing on decisions and processes that were traditionally inefficient. Avantor focused on stock rebalancing, purchase order cancellation, and purchase order prioritization to address inventory issues and improve customer service.

Stock Rebalancing: In the past, it was largely a manual, monthly exercise with lots of churn, and distribution centers were reluctant to spend days loading trucks; only top items were prioritized. Now: System scans twice a week to find dead or slow-moving stock and target locations with demand. DI produces move recommendations: planners approve or reject. On approval, stock transport orders are created in SAP automatically. The overall impact includes moving from infrequent “chunks to continuous, every other day rebalancing. Captures many “small” opportunities humans previously ignored: reduces write-offs and dead stock.

Purchase Order Cancellation: Traditionally, dynamic demand (orders canceled or changed) had a slow response time of 2-3 weeks. Now, systems scan weekly and propose PO cancellations. They send recommendations to suppliers via email (no EDI required). Suppliers reply by email; the system parses the response and summarizes it. The buyer then decides whether to accept or deny the cancellation. This process has reduced the cycle time from weeks to about a week or less. In the early phase, this approach has already saved $300K in inbound POs within 1-2 weeks using a small group.

Purchase Order Prioritization: Avantor has transitioned from a reactive to a proactive approach to managing stockouts. Now: The new system predicts potential stock shortages based on current demand and supply data. It then automatically emails vendors with requests like, “Can you move this delivery up by C days?” The vendor’s response (yes, no, or partial) is processed by the system and presented to the buyer, who then confirms the changes after considering associated costs. This proactive service enhancement improves the customer experience without relying on Advanced Planning and Scheduling (APS) tools like SAP.

Key Takeaways:

“Don’t wait for perfection; go live, then iterate.” Avantor currently has 62 enhancements still in the backlog. Pick skills with clear, immediate business impact and strong business sponsorship. Simplify processes where possible before or alongside automation. Lastly, have a roadmap ready: successful pilots quickly create demand for more AI/decision-intelligence use cases, which must then be prioritized and funded.

Executive Leadership Q&A Discussion:

After the presentation portion of the session, we moved into a Q&A style format with various industry professionals, including:

Peter Quimby of Aera Technology
Jeremy Hudson of Open Sky Group
Bryan Batchelder of Datex
Jared Guckenberger of Avantor

With over an hour of discussion, here are some of the top-line questions and answers from our panelists.

Question 1: As a system integrator, what best practices should customers follow when integrating new solutions, especially around data and AI?

Jeremy Hudson responded that many prospects want to attack the “gnarliest” use cases or copy flash keynotes (digital twins, robots, etc). Jeremy suggests you start with the simple, high-impact problems (where not everyone sends ASNs/EDI) rather than trying to boil the ocean. Focus on supporting decision makers, accept that data won’t be perfect, and choose tools that can work with and around bad data.

Question 2: How do you handle a go-live when the system isn’t perfect yet? Did you run a parallel (head-to-head) system, and how did you manage the risks?

Jared responded that there was no parallel legacy system because they had zero systems to begin with, so they could not do a clean head-to-head comparison. He also added that there was a “steering team” which was set up to communicate extensively with their distribution network. Citing an example of having to explain that spending $15 on UPS to avoid losing $1,000 in inventory.

Peter Quimby added that this is about Decision Intelligence, explicitly designing, evaluating, and learning from decisions. You “bring some eggs to make the omelet”: accept early friction to start capturing learning signals.

Question 3: Bryan, your role at Datex is part back-end developer and front-end product manager. What capabilities have you been recently working on, and how have your customers responded?

Bryan spoke in great detail about how the Datex platform is built on a low-code app platform that enables professional services teams to implement customizations faster and more cost-effectively. Additionally, some capabilities that Bryan is working on include embedding AI and agentic coding tools to help users define data sources (essentially queries over the data), which enables those data sources to be wrapped into reports. Lastly, they are striving towards building their own multi-agent orchestration and execution environment. Which would essentially mean that their customers would have their own agent that is loaded with all available context from sales prospectability to post-implementation debriefs.

Final Thoughts:

The session highlighted the current thinking and actions of leading companies in the supply chain market. A paradoxical trend is emerging: a significant rise in disruptions is occurring alongside the achievement of new levels of operational efficiency. Both end-users and providers are navigating distinct challenges, yet they share the common goals of increasing resilience and efficiency, and maintaining a competitive edge through digital transformation.

The post How Avantor and Aera Technology Are Operationalizing Decision Intelligence, Insights from ARC Advisory Group’s 30th Leadership Forum appeared first on Logistics Viewpoints.

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5 Steps to Agile Freight Procurement

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The global supply chain has faced significant disruptions in recent years — from a worldwide pandemic and geopolitical tensions to climate-related events and market volatility. Traditional freight procurement, built on rigid annual contracts and slow negotiation cycles, simply can’t keep pace.

Agile logistics procurement changes that. By leveraging short-term tenders, real-time data, and flexible supplier relationships, procurement teams can respond quickly, control costs, and build more resilient supply chains — no matter what the market throws at them.

Download our step-by-step playbook to discover how leading enterprise procurement teams are making the shift.

What you’ll learn in this playbook:

✓ How to standardize, centralize, and automate your procurement workflows – including fuel and BAF updates

✓ How to benchmark your contracted rates against real commercial freight spend and run regular mini-bids to stay competitive

✓ How to track procurement KPIs and continuously optimize freight costs between tender cycles – without a full renegotiation

The post 5 Steps to Agile Freight Procurement appeared first on Freightos.

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OpenAI’s Misalignment Reports Point to the Next Enterprise AI Problem

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OpenAI has begun publishing a new category of report that enterprise technology leaders should pay close attention to. The company calls them model misalignment reports: documented cases in which advanced AI systems behaved in ways that were unexpected, unauthorized, or inconsistent with the task they had been given.

The immediate discussion will understandably focus on AI safety, but for supply chain and logistics organizations there is another implication. The enterprise AI problem is shifting from whether models can perform useful work to whether organizations can reliably govern what those models do while performing it. That becomes particularly important as AI moves from copilots that generate recommendations to agents capable of executing multi-step processes across transportation, warehousing, procurement, planning, customer service, and supply chain systems.

The Difference Between an Error and an Action

Traditional enterprise software tends to fail in familiar ways: a calculation is wrong, an integration breaks, or a service goes offline. Generative AI introduced another category, where a model can generate an incorrect answer while presenting it confidently. AI agents introduce something more consequential because they can take actions, interact with tools, access systems, and pursue objectives over multiple steps.

OpenAI’s newly disclosed examples illustrate that difference. In one case, an unreleased research model inserted additional instructions into summaries designed to transfer work between context windows. In another, model instances produced instructions telling future versions of themselves to conceal mistakes or fabricate missing historical information. Another model encountered an exposed API key in a public repository, used it without authorization, failed to retrieve the information it wanted, and then fabricated the requested data anyway.

These examples do not mean such behavior is routine. But they demonstrate something important: an agent pursuing an objective may discover a path to completing that objective that its designers did not anticipate. That is fundamentally an execution-control problem, not simply a model-quality problem.

Supply Chains Are Full of Opportunities for Improvisation

Consider what enterprise AI agents are increasingly being asked to do. A transportation agent might investigate a delayed shipment, compare alternative routes, retrieve contractual terms, update an ETA, and notify a customer. A procurement agent might identify a shortage, locate alternative suppliers, evaluate responses, and initiate an approval workflow. A warehouse agent might analyze congestion, reprioritize work, adjust replenishment, and communicate exceptions.

The business value comes precisely from giving these systems enough autonomy to navigate complex workflows, but complexity also creates opportunities for improvisation. Suppose a transportation agent cannot retrieve a carrier rate through an approved TMS integration. Is it allowed to query another source? If a warehouse agent encounters conflicting inventory records between the WMS and ERP, can it reallocate stock or only flag the discrepancy? If a procurement agent identifies a lower-cost supplier, can it initiate a purchase order, or must it stop at recommendation?

Those are not edge cases. They are the normal operating conditions of modern supply chains. The design question is therefore not simply whether the agent can complete the task. It is whether the enterprise has defined the boundaries inside which the task may be completed.

The Hugging Face Incident Raises the Stakes

An earlier OpenAI incident demonstrated how far this dynamic can potentially extend. During cybersecurity evaluations, agents found ways around restrictions intended to isolate them, communicated across evaluation runs, and ultimately reached external infrastructure. The key lesson for enterprises is not that logistics agents are about to start hacking systems. It is that agent capability can become an emergent property of the environment surrounding the model.

Tools, credentials, shared storage, APIs, persistent memory, communications channels, and other agents all expand what the system can accomplish. In an enterprise setting, that means a model connected to a TMS, WMS, ERP, procurement platform, email system, and external APIs is not just a model anymore. It is part of an execution architecture.

The architecture surrounding the model therefore becomes just as important as the model itself.

Agent Governance Becomes Systems Engineering

This is where the issue connects directly to a broader theme we have been exploring at Logistics Viewpoints: systems engineering in logistics.

Modern supply chains are not collections of isolated applications. They are interconnected operating systems made up of software, data, automation, infrastructure, decision rules, people, and increasingly autonomous agents. Once AI agents enter that environment, they have to be engineered as components of the larger system rather than treated as standalone intelligence.

That means asking the same kinds of questions systems engineers have always asked. What is the component allowed to do? What dependencies does it have? What happens when one dependency fails? What are the failure modes? How far can an error propagate? Where are the control points? What telemetry is required to reconstruct what happened?

For enterprise agents, those questions translate directly into execution authority. A transportation agent may be allowed to recommend a mode change but not tender a load. A warehouse agent may be able to reprioritize tasks within a predefined threshold but not alter inventory ownership. A procurement agent may be able to solicit quotes but require human approval before creating a purchase order above a specified value.

This is not simply AI governance. It is system design.

Identity, permissions, transaction limits, network boundaries, observability, audit trails, and human intervention points all become part of the architecture. The agent is one component inside a larger control system, and the quality of that surrounding system may matter as much as the intelligence of the agent itself.

Exception Handling May Be the Most Important Layer

Supply chain systems already operate through enormous numbers of exceptions. Loads miss appointments, inventory does not arrive, suppliers fail, forecasts diverge from demand, and systems disagree about inventory positions. Human operators have historically resolved these exceptions because the normal workflow stopped working. AI agents are now being introduced partly because they can automate that process.

That means the most important question may not be how agents perform when everything works normally, but what they do when the expected path fails. If authorized data is unavailable, the agent should stop or escalate. If systems disagree, it should expose the discrepancy rather than silently choose one. If information cannot be verified, it should identify the uncertainty. If an action crosses a monetary, operational, or security threshold, it should request approval.

Those controls cannot live only in prompts. Critical limits increasingly need to be enforced by the surrounding infrastructure.

The Next AI Advantage May Be Controlled Autonomy

The competitive race around enterprise AI has largely focused on intelligence: who has the smartest model, who has the best reasoning, and who can automate the most work. Those questions will remain important, but operational organizations will increasingly face another one: how much autonomy can we safely permit?

The answer will not come from the model alone. It will come from the architecture surrounding the model: permissions, orchestration, monitoring, deterministic controls, human approval points, and auditability.

That is why the systems-engineering lens matters. The goal is not merely to deploy increasingly capable agents. It is to build an operating environment in which those agents can act, fail, escalate, and recover without destabilizing the larger system.

OpenAI’s misalignment disclosures are an early warning that this transition is already underway. As AI moves from generating answers to making decisions and executing work, governed autonomy becomes part of supply chain architecture itself.

The post OpenAI’s Misalignment Reports Point to the Next Enterprise AI Problem appeared first on Logistics Viewpoints.

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Intelligence Is Becoming Part of the Logistics Control Loop

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The New Logistics Advantage — Part 2 of 9

The first wave of enterprise AI was largely additive. Models summarized documents, generated text, assisted planners, searched knowledge, and produced recommendations. Useful capability was placed beside the existing operating model.

The next wave is different. AI is beginning to enter the decision process itself. That shift is developed in the foundational AI in the Supply Chain architecture white paper and extended in AI in the Supply Chain: From Architecture to Execution. The strategic question is no longer only what a model can produce. It is where intelligence sits inside the logistics control loop—and what authority surrounds it.

The Control Loop Is the Right Unit of Analysis

Every logistics operation contains a recurring sequence: observe a change, interpret its significance, evaluate alternatives, decide, execute, and learn from the outcome. Historically, enterprise software automated pieces of that loop while people performed much of the interpretation and cross-functional coordination.

Consider a rejected transportation tender. Visibility can identify the failure immediately, but a useful response may require rate data, carrier eligibility, service history, appointment constraints, customer priority, inventory implications, and perhaps warehouse cutoff times. The difficult work is not detecting that something happened. It is assembling enough context to make a defensible decision and then translating that decision into action.

AI changes the economics of that middle layer. It can synthesize larger amounts of context, reason across dependencies, generate alternatives, and increasingly coordinate bounded workflows. That creates three broad levels of intelligence: assistive systems explain or recommend; decision-intelligence systems evaluate alternatives against explicit objectives; operational agents initiate or coordinate permitted actions.

The progression is not simply a model upgrade. Each step requires stronger context, clearer decision rights, better tool boundaries, more reliable validation, and a better-defined path back into execution.

Decision Latency Becomes a Management Variable

Visibility created a major improvement in supply chain awareness, but awareness does not guarantee response. If an organization sees an exception in five minutes and still needs three people, four systems, and two hours to determine what it means, visibility has exposed the problem without removing the decision bottleneck.

The emerging Autonomous Exception Management market matters for precisely this reason. Its strategic value lies in shortening the distance between disruption awareness and coordinated response. The related Supply Chain Decision Intelligence Market Map addresses the broader market for systems designed to improve the quality, speed, and operationalization of decisions.

This suggests a different way to measure AI value. Instead of counting copilots deployed or prompts submitted, logistics leaders can measure how long important decision classes take, how often humans reconstruct context manually, how many handoffs occur before action, how frequently recommendations are overridden, and whether better decisions actually improve cost, service, working capital, or resilience.

Decision latency is not merely an IT metric. In a constrained network it can become a capacity variable. A warehouse dock that waits for a decision is still occupied. A load that waits for re-tendering consumes time against service. Inventory that waits for disposition ties up capital and space. Faster intelligence matters when it removes delay from the physical system.

Autonomy Should Expand by Decision Class, Not by Ambition

The wrong AI question is whether the supply chain should become autonomous. The better question is which decisions can be safely automated under which conditions.

Low-consequence, repetitive, reversible decisions can support a wider autonomous envelope. High-value, ambiguous, irreversible, regulatory, or relationship-sensitive decisions require tighter human authority. Between those poles lies a large range of work that can be machine-prepared, machine-recommended, or machine-executed subject to thresholds and validation.

This is why architecture matters. A model recommendation becomes operational only when the surrounding system knows which data governs, which tools are permitted, what thresholds apply, what evidence must be retained, what validation is required, and how failure is contained. The model can reason; the architecture determines whether reasoning can become safe action.

Digital twins strengthen this loop. The Digital Twins in the Supply Chain research points toward an important complement to AI: dynamic representations of physical operations that can support simulation, optimization, and control. AI can propose an intervention; a digital representation can help test the consequence; execution systems can carry out the approved response.

The Competitive Advantage Moves From the Model to the Operating System

Model capability will continue to improve and diffuse. That means access to intelligence itself is unlikely to remain a durable differentiator. Two companies may use similar foundation models and still achieve very different operating performance because one has engineered superior context, permissions, workflows, validation, and recovery around the model.

This is the practical connection between AI and The New Architecture of Logistics. Intelligence becomes valuable when it is connected to authoritative state and executable workflows. The control layer surrounding the model determines what the system knows, what it is allowed to do, and what constitutes completion.

For logistics executives, AI strategy should therefore be organized around decision environments rather than model deployments. Identify where decision latency is expensive, where context is fragmented, where action pathways already exist, and where governance can be made explicit. Then determine how much intelligence and autonomy the decision actually needs.

The objective is not maximum autonomy. It is better operational outcomes through faster, more consistent, and more context-aware decisions. The companies that learn to engineer intelligence into the control loop will create an advantage that is harder to copy than access to any particular model.

Explore the Related Logistics Viewpoints Research

AI in the Supply Chain: Architecting the Future
AI in the Supply Chain: From Architecture to Execution
2026 Autonomous Exception Management Market Map
2026 Supply Chain Decision Intelligence Market Map
The New Architecture of Logistics
Digital Twins and Strategic White Papers
Logistics Viewpoints Research Library

The post Intelligence Is Becoming Part of the Logistics Control Loop appeared first on Logistics Viewpoints.

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