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Deepak Gupta markTechnology Rewired
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Run cluster · Procurement, logistics, operations

Technology Rewired: Supply Chain and Procurement

Supply chain software moved from on-prem ERP, EDI, and phone calls to cloud procurement, supplier networks, and logistics platforms. AI added demand forecasting. Agents now draft purchase orders, compare quotes, and chase suppliers, but trucks, warehouses, and ports move at physical speed, so autonomy here grows slower than in software-only work.

The shift: Sourcing, POs, and supplier chasing run as agent workflows; physical flow stays human-paced.

Verified
1.6

Copilot today
2.5 in five years

How has the supply chain and procurement team changed across five eras?

  1. Era 1 · On-prem

    Before 2005

    0.3

    Procurement and logistics ran on on-prem ERP, EDI links, fax, and phone. Buyers negotiated by relationship, planners forecast in spreadsheets, and expediters called suppliers to find late shipments.

  2. Era 2 · SaaS and cloud

    2005 to 2020

    0.9

    Cloud procurement, supplier networks, and transport management tools brought visibility and spend control. Teams added category managers, supplier risk analysts, and logistics coordinators working dashboards.

  3. Era 3 · AI-assisted

    2020 to 2024

    1.4

    ML demand forecasting and anomaly alerts improved planning, but disruptions still landed on planners who rebuilt plans by hand.

  4. Era 4 · Agentic

    2024 onward

    1.6

    Agents now draft purchase orders, compare supplier quotes, answer supplier questions, and follow up on late confirmations. Physical execution, contracts with real liability, and supplier relationships remain human-led. Every new supplier connection is also a security exposure, the theme of the risks of third-party vendors.

  5. Era 5 · Next 5 years

    2026 to 2031

    2.5

    My bet: tail spend and routine replenishment run through agents, and procurement teams focus on strategic suppliers and risk. Warehouses and transport keep automating through robotics on their own slower curve.

Which supply chain and procurement software is being rewired?

No deep dives yet. The first ones are in the queue below.

Coming next

  • Procurement and purchasing
  • Spend management
  • Supplier management
  • Logistics
  • Warehouse management
  • Demand forecasting

Also wired into this category: Invoicing and Accounts Payable.

Keep reading

Essays and analysis

What died (Tech Graveyard)

What comes next (Future Tech)