The supply chain landscape of 2026 is defined by volatility. From rising energy prices to shifting geopolitical tensions, the external pressures on procurement teams are relentless. In our recent Expert Exchange webinar hosted by Michael Terry, Supply Chain Director at Daher, we explored a critical ultimatum for the industry: modernize your operations now or absorb the mounting costs of inaction.
The Shift from Manual to AI-Driven Insights
For years, supply chain management relied on localized databases and manual spreadsheet exports. According to recent research, 92% of leaders agree that AI insights are essential for predicting and preventing disruptions before they halt production. Yet only 19% of manufacturers have successfully digitized their manufacturing and supply chain operations.
Michael Terry emphasizes that the transition to automation is now a matter of survival:
"I agree AI is essential. It's not just a simple ChatGPT email revision. It's improving your communication by what data you're seeing in your system. With the rollout of Kei, we are going to be able to see what the data is telling us faster. We can answer with facts and data based on an AI drive system." -Michael Terry
While there is an abundance of automation tools on the market today, the key is finding a solution that translates vast amounts of data into actual business intelligence. APEX’s AI assistant, Kei, provides fact-based, data-driven responses for executive requests and identifies vendor performance trends that human buyers might miss due to tribal knowledge or emotional bias.
Data Health as the New Foundation
Digitization is the first step, but the health of that data determines the outcome. Because AI systems treat recorded data as authoritative, they will propagate any existing errors they find. Modernizing requires a commitment to data quality to ensure that automated supply chain streams remain reliable and effective.
“AIs are very good students. If you write something down, they trust it and are going to follow it. Successfully digitizing your supply chain is great, but the data quality is so much more critical now.” - Harrison Wells, VP of Professional Services at LeanDNA
A Playbook for Operational Efficiency
Modernization also provides a practical framework for buyers to handle increased workloads, especially during periods of team downsizing. Mike explained that once you invest in structuring your workflow, APEX handles the heavy mental lifting:
Mike outlined a specific hierarchy of actions he and the Daher team uses for operational efficiency using automation tools like APEX:
- Prioritize purchase requisitions based on lead times to ensure material reaches the floor.
- Execute inventory actions, such as pull-ins or cancellations, to burn down excess stock.
- Address current shortages by tackling zero-balance items first.
- Manage open purchase orders through rigorous monthly business reviews.
Building a Resilient Future
Modernization is about building the capacity to respond and adapt quickly to unpredictable disruptions. By integrating AI into forecasting and contract management, organizations can move from a reactive state to a dynamic one. Mike summarized the goal of a modernized system as being prepared for the unexpected:
"You're not going to necessarily avoid black swan events, but what you'll be able to do is smooth them out... if you've got backup plans and alternates already in place, then you can move pretty quickly." - Michael Terry
