Navigating the Costs of Tariff Turbulence: Revealing Blind Spots in Supply Chains with AI Technology

The Power of Process Intelligence in Modern Supply Chains

Supply chain disruptions are a common challenge faced by companies worldwide. When tariff rates fluctuate unexpectedly, businesses are under immense pressure to adapt quickly in order to stay competitive. At Celosphere 2025 in Munich, industry leaders showcased how they are leveraging process intelligence to transform chaos into opportunity, yielding tangible results that set them apart from the competition.

Vinmar International: Real-Time Supply Chain Optimization

Vinmar International, a global distributor of plastics and chemicals, revolutionized its $3 billion supply chain by creating a real-time digital twin. This innovation enabled them to reduce default expedites by over 20% and enhance delivery agility across their global operations.

Florida Crystals: Driving Efficiency Through Automation

Florida Crystals, one of the largest cane sugar producers in America, unlocked significant working capital and bolstered supply chain resilience by eliminating manual rework across various departments. By deploying AI pilots, they extended their gains to areas such as invoice processing, predictive maintenance, and order management.

ASOS: Transparency and Efficiency in Ecommerce

ASOS, a leading ecommerce fashion retailer, achieved full transparency in its end-to-end supply chain. This initiative led to a reduction in process variation, accelerated speed-to-market, and improved overall customer experience on a large scale.

What ties these success stories together is the utilization of process intelligence to bridge the gap left by traditional ERP systems. By connecting operational data across ERP, finance, and logistics systems in real-time, companies can make informed decisions swiftly, especially when faced with time-sensitive challenges.

Peter Budweiser, General Manager of Supply Chain at Celonis, emphasizes the importance of having systems that can quickly identify and address disruptions. The inability to do so can result in significant financial losses and diminished competitive positioning for businesses.

The Limitations of Traditional ERP Systems

Supply chain leaders often find themselves inundated with data but lacking actionable insights. While systems like SAP, Oracle, and PeopleSoft meticulously capture transactional data, they fall short when companies need to model alternative scenarios rapidly in response to tariff fluctuations.

Manik Sharma, Head of Supply Chain GTM AI at Celonis, highlights the inadequacy of traditional ERP systems in handling today’s dynamic business environment. Companies are left with historical reports that offer little guidance when they need to make critical decisions in real-time.

The Tariff Challenge: A Race Against Time

Global trade volatility has turned tariffs into strategic tools that can significantly impact businesses. When new rates are announced, companies have a mere 48 hours to assess the implications, explore alternative sourcing options, and execute necessary changes before their competitors gain an advantage.

Process intelligence plays a crucial role in enabling businesses to continuously model various scenarios, allowing leaders to understand how tariff changes cascade through their supply chains. By having this visibility, companies can swiftly pivot their strategies when tariffs are adjusted.

The Essential Role of Process Intelligence in AI-Driven Supply Chains

The synergy between AI and supply chains is undeniable, with both sides relying on each other to navigate the complexities of modern business. However, without process intelligence, AI agents operate blindly, potentially leading to costly errors.

As companies undergo SAP migrations and other system transitions, Kerry Brown, a transformation evangelist at Celonis, stresses the importance of understanding how work processes flow across existing systems. Process intelligence provides the necessary context for AI to make informed decisions and keep supply chains running smoothly.

Empowering Real-Time Decision-Making Through Digital Twins

Celonis’ approach to process intelligence involves creating a digital twin that overlays existing systems, allowing businesses to visualize end-to-end processes in real-time. This comprehensive view enables companies to identify dependencies that traditional integrations may overlook, ensuring operational efficiency.

Daniel Brown, Chief Product Officer at Celonis, explains how this cross-system awareness facilitates coordinated actions across complex workflows, especially crucial during periods of rapid change such as tariff adjustments.

Zero-Copy Integration: Instant Insights for Rapid Response

Celonis’ innovative zero-copy integration with platforms like Databricks and Microsoft Fabric eliminates data duplication and latency issues, enabling companies to query vast amounts of data in near real-time. This capability empowers businesses to model alternative scenarios instantly, enhancing their agility in response to market changes.

Enhanced Task Mining further enhances this by capturing desktop activities and revealing manual work processes that may not be documented in system logs. This visibility is invaluable during times of urgent decision-making, such as when tariffs are revised suddenly.

Gaining a Competitive Edge in Turbulent Markets

While many companies are unable to overhaul their existing systems, process intelligence offers a viable solution by optimizing workflows, deploying AI strategically, and adapting continuously to evolving conditions. This flexible approach enables businesses to leverage their current ERP systems effectively while staying ahead in volatile markets.

As businesses brace for the next wave of tariff changes, the ability to connect operational dots swiftly will be paramount. The question is not whether your ERP system captures data but whether it can provide actionable insights in a timely manner.

If you missed Celosphere 2025, you can catch up on all the highlights here.

This article is sponsored content produced by Celonis. For more information, contact sales@venturebeat.com.