A New Era of Supply Chain Pressure
In a recent AIJ Thought Leader article, Agentic AI will transform responsible sourcing, but human judgment remains essential, CEO and EIQ, Kevin Franklin discusses how today’s supply chains face intense scrutiny — from forced labor concerns to new global reporting rules. Companies need faster, more reliable ways to identify risk and stay compliant. That’s where agentic AI comes in.
How AI Is Improving Responsible Sourcing
Agentic AI, which can take goal-oriented action, is already helping teams:
- Analyze supplier audits and standardize data across different formats
- Scan global media for signs of labor or environmental violations
- Spot inconsistencies that signal hidden risks or unauthorized subcontracting
- Automate supplier management tasks like audit scheduling, corrective action tracking, and reporting
These tools give companies clearer visibility — and more time to act.
Why Human Judgment Still Matters
Human oversight remains essential because supplier relationships depend on trust, cultural understanding, and real-world context that data alone can’t capture. Ethical sourcing also requires values-based judgment, not just compliance scores. And when risks do surface, leaders must consider strategy, risk tolerance, and brand reputation to determine the right path forward — decisions that only humans are equipped to make.
AI supports decisions — it doesn’t replace them.
Setting the Foundation
To use AI responsibly, companies need:
- Strong data governance and security
- Clean, structured data
- Cross-functional alignment across sourcing, legal, IT, and compliance
- Training so teams understand and trust AI insights
What This Means for Material Handling
For manufacturers and distributors, responsible sourcing is no longer optional. AI can help teams monitor risk across large supplier networks, stay compliant with rapidly evolving regulations, and protect brand reputation. The future is a partnership: AI provides speed and scale, while people provide judgment, relationships, and ethics.
Read the full article Agentic AI will transform responsible sourcing, but human judgment remains essential
