Manufacturers turn to AI to weather tariff storm
Despite five years of dramatic supply disruptions, from the Covid pandemic to today's trade wars, Toro is resisting any temptation to stack its warehouses to the rafters.
"We are at probably pre-pandemic inventory levels," said its chief supply-chain manager, Kevin Carpenter, looking relaxed in front of a whiteboard at his office in Minneapolis.
"I think everybody will be at a 2019 level."
Among US manufacturers, inventories have roller-coasted this year as they rushed to beat Trump's deadlines for tariff hikes, only to see them repeatedly delayed.
But how can firms run lean inventories even as tariffs fluctuate, export bans come out of the blue, and conflict rages?
One of the answers, they say, is artificial intelligence.
Carpenter says he uses AI to digest the daily stream of news that could impact Toro's business, from Trump's social media posts to steel prices, into a custom-made podcast that he listens to each morning.
His team also uses generative AI to sieve an ocean of data and to suggest when and how many components to buy from whom.
It is a boom industry.
Spending on software that includes generative AI for supply chains, capable of learning and even performing tasks on its own, could hit US$55 billion by 2029, up from US$2.7 billion now, according to US research firm Gartner, driven in part by global uncertainties.
"The tool just puts up in front of you: 'I think you can take 100 tonnes of this product from this plant to transfer it to that plant.'
"And you just hit accept if that makes sense (to you)," McKinsey supply chain consultant Matt Jochim said.
The biggest providers of overall supply chain software by revenue are Germany's SAP, US firms Oracle, Coupa and Microsoft and Blue Yonder, a unit of Panasonic, according to Gartner.
Generative AI is in its infancy, with most firms still piloting it spending modest amounts, industry experts say.
Those investments can climb to tens of millions of dollars when deployed at scale, including the use of tools known as AI agents, which make their own decisions and often need costly upgrades to data management and other IT systems, they said.
In commenting for this article, SAP, Oracle, Coupa, Microsoft and Blue Yonder described strong growth for generative AI solutions for supply chains without giving numbers.
At US supply chain consultancy GEP, which sells AI tools like this, Trump's tariffs are helping to drive demand.
"The tariff volatility has been big," said GEP consultant Mukund Acharya, an expert in retail industry supply chains.
SAP said the uncertainty was driving technology take-up.
"That's how it was during the financial crisis, Brexit and Covid. And it's what we're seeing now," Richard Howells, SAP vice president and supply chain specialist, said.
An AI agent can sift real-time news feeds on changing tariff scenarios, assess contract renewal dates and other data points and come up with a plan of action.
But supply chain experts warn of AI hype, saying a lot of money will be wasted on a vain hope that AI can work miracles.
"AI is really a powerful enabler for supply chain resilience, but it's not a silver bullet," says Minna Aila, communications chief at Finnish crane-maker Konecranes and member of a business board that advises the OECD on issues including supply chain resilience.
Aila said: "I'm still looking forward to the day when AI can predict terrorist attacks at sea, for instance."
Konecranes' logistic partners are deploying AI on more mundane data, like weather forecasts.
The company makes port cranes that are up to 106m high when assembled.
When shipping them, AI marries weather forecasts with data like bridge heights to optimise the route.
Toro supply chain chief Carpenter says that without AI, supply chain managers might need to run bigger teams as well.
Is he worried that AI is coming for his job one day?
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
8 hours ago
- New Straits Times
Manufacturers turn to AI to weather tariff storm
MANUFACTURERS like American lawnmower maker The Toro Company are not panicking at the prospect of United States President Donald Trump's global trade tariffs. Despite five years of dramatic supply disruptions, from the Covid pandemic to today's trade wars, Toro is resisting any temptation to stack its warehouses to the rafters. "We are at probably pre-pandemic inventory levels," said its chief supply-chain manager, Kevin Carpenter, looking relaxed in front of a whiteboard at his office in Minneapolis. "I think everybody will be at a 2019 level." Among US manufacturers, inventories have roller-coasted this year as they rushed to beat Trump's deadlines for tariff hikes, only to see them repeatedly delayed. But how can firms run lean inventories even as tariffs fluctuate, export bans come out of the blue, and conflict rages? One of the answers, they say, is artificial intelligence. Carpenter says he uses AI to digest the daily stream of news that could impact Toro's business, from Trump's social media posts to steel prices, into a custom-made podcast that he listens to each morning. His team also uses generative AI to sieve an ocean of data and to suggest when and how many components to buy from whom. It is a boom industry. Spending on software that includes generative AI for supply chains, capable of learning and even performing tasks on its own, could hit US$55 billion by 2029, up from US$2.7 billion now, according to US research firm Gartner, driven in part by global uncertainties. "The tool just puts up in front of you: 'I think you can take 100 tonnes of this product from this plant to transfer it to that plant.' "And you just hit accept if that makes sense (to you)," McKinsey supply chain consultant Matt Jochim said. The biggest providers of overall supply chain software by revenue are Germany's SAP, US firms Oracle, Coupa and Microsoft and Blue Yonder, a unit of Panasonic, according to Gartner. Generative AI is in its infancy, with most firms still piloting it spending modest amounts, industry experts say. Those investments can climb to tens of millions of dollars when deployed at scale, including the use of tools known as AI agents, which make their own decisions and often need costly upgrades to data management and other IT systems, they said. In commenting for this article, SAP, Oracle, Coupa, Microsoft and Blue Yonder described strong growth for generative AI solutions for supply chains without giving numbers. At US supply chain consultancy GEP, which sells AI tools like this, Trump's tariffs are helping to drive demand. "The tariff volatility has been big," said GEP consultant Mukund Acharya, an expert in retail industry supply chains. SAP said the uncertainty was driving technology take-up. "That's how it was during the financial crisis, Brexit and Covid. And it's what we're seeing now," Richard Howells, SAP vice president and supply chain specialist, said. An AI agent can sift real-time news feeds on changing tariff scenarios, assess contract renewal dates and other data points and come up with a plan of action. But supply chain experts warn of AI hype, saying a lot of money will be wasted on a vain hope that AI can work miracles. "AI is really a powerful enabler for supply chain resilience, but it's not a silver bullet," says Minna Aila, communications chief at Finnish crane-maker Konecranes and member of a business board that advises the OECD on issues including supply chain resilience. Aila said: "I'm still looking forward to the day when AI can predict terrorist attacks at sea, for instance." Konecranes' logistic partners are deploying AI on more mundane data, like weather forecasts. The company makes port cranes that are up to 106m high when assembled. When shipping them, AI marries weather forecasts with data like bridge heights to optimise the route. Toro supply chain chief Carpenter says that without AI, supply chain managers might need to run bigger teams as well. Is he worried that AI is coming for his job one day?
Malaysian Reserve
9 hours ago
- Malaysian Reserve
Siemba Named a Sample Vendor in Three 2025 Gartner® Hype Cycle™ Reports for the Second Year in a Row
ATLANTA, Aug. 16, 2025 /PRNewswire/ — Siemba, a leading provider of Penetration Testing as a Service (PTaaS) and Continuous Threat Exposure Management (CTEM), announced today that it has been recognized as a Sample Vendor in the 2025 Gartner® Hype Cycle™ for Application Security, Security Operations, and Everything as a Service (XaaS) reports. This marks the second consecutive year Siemba has been included in all three Hype Cycle reports. Siemba believes this reinforces its growing role in shaping the future of offensive security. The Gartner Hype Cycle reports provide a perspective on the maturity and adoption of emerging technologies. For cybersecurity decision-makers, these reports serve as strategic guides to evaluate which innovations can address real-world risks and drive long-term security improvements. In all three reports, Siemba was identified as a Sample Vendor for Penetration Testing as a Service (PTaaS). Siemba believes that its scalable, platform-driven approach to offensive security will make it easier for organizations to secure their data and assets. 'We are proud to be recognized for the second consecutive year across three Gartner Hype Cycle reports. We believe this is a strong validation of our thesis that continuous validation and visibility are critical to modern cybersecurity,' said Kannan Udayarajan, Founder and CEO of Siemba. 'We're proud that our Full Funnel Offensive Security platform is helping organizations find, prioritize, and remediate risks faster—at the pace of their business.' The 2025 Gartner Hype Cycle for Application Security notes: 'Cybersecurity leaders must take advantage of the underlying trends in the application security space to onboard the most appropriate innovations at the optimal time for their organizational maturity.'(Source: Gartner, Hype Cycle for Application Security, 2025. Dionisio Zumerle, 22 July 2025) Gartner states 'PTaaS enables organizations to elevate their security posture with continuous assessments that integrate validation earlier in the software development life cycle as compared with traditional pentesting efforts. It gives access to real-time findings delivered through a platform, which accelerates remediation and improves collaboration efforts.' Siemba's AI driven platform combines External Attack Surface Mapping, Dynamic Application Security Testing (DAST), Automated Vulnerability Assessments, and Penetration Testing as a Service, helping enterprises operationalize CTEM programs at scale. To learn more or download the 2025 Hype Cycle for Security Operations, visit : Gartner Disclaimer Gartner, Hype Cycle for Application Security, 2025, By Dionisio Zumerle, 22 July 2025Gartner, Hype Cycle for Security Operations, 2025, By Jonathan Nunez, Darren Livingstone, 23 June 2025Gartner, Hype Cycle for XaaS, 2025, By Jason Donham, 28 July 2025 GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, HYPE CYCLE is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About Siemba Siemba's outcome-driven Full Funnel Offensive Security model brings together Penetration Testing as a Service (PTaaS), Autonomous DAST (Dynamic Application Security Testing), Vulnerability Assessments, and External Attack Surface Mapping on one unified AI-driven platform. The platform delivers actionable data and insights enabling visibility, speed, scalability, and efficiency in Continuous Threat Exposure Management (CTEM). Enterprises, global systems integrators, government agencies and growing companies leverage Siemba to establish CTEM programs, map assets, launch and schedule autonomous assessments, conduct manual penetration testing and autonomously gather strategic threat and efficiency insights to maximize Return on Mitigation, without requiring extensive hacking knowledge or human intervention. The platform provides one-click security-framework-aligned reports, attack scoring, prioritized lists of findings with suggested remediation actions and attack proofs of concept.
The Star
10 hours ago
- The Star
Vietnamese rice grower helps tackle Cuba's food shortage
Vietnamese rice specialists watch mechanized rice harvesting, in Los Palacios, Pinar del Rio province, Cuba, on May 29, 2025. The Cuban government gave land to a private Vietnamese company for rice production in the face of the lack of local productive varieties and inputs to solve the lack of this cereal on the island. The national average rice yield is 1.6 tons per hectare, and the first fields harvested within this plan had a yield exceeding six tons per hectare. - Photo by Adalberto ROQUE / AFP LOS PALACIOS, Cuba (AFP): Outside Havana, a combine belonging to a private Vietnamese company is harvesting rice, directly farming Cuban land -- in a first -- to help address acute food shortages in the country. The Cuban government has granted Agri VAM, a subsidiary of Vietnam's Fujinuco Group, 1,000 hectares (2,470 acres) of arable land in Los Palacios, 118 kilometers (73 miles) west of the capital. Vietnam has advised Cuba on rice cultivation in the past but this is the first time a private firm has done the farming itself. The government approved the move after a 52 percent plunge in overall agricultural production between 2018 and 2023, according to data from the Center for the Study of the Cuban Economy at the University of Havana. The rice numbers are even worse. Total rice production dropped from 300,000 tons in 2018 to 55,000 tons in 2021, in the depths of the COVID pandemic. The number is slowly recovering, authorities say. Rice is a staple of the local diet, with Cubans consuming 60 kilos (132 pounds) of rice per person per year. Farmers load sun-dried bags of rice onto a truck, in Los Palacios, Pinar del Rio province, Cuba, on May 29, 2025. - AFP Photo - Promising yields and daunting obstacles - During a media visit to its rice fields in May, an Agri VAM representative said the harvest yield to date is seven tons per hectare, "but we want more." That number dwarfs the ton and a half yield-per-hectare of Cuban growers. Vietnam experienced the kind of food shortages that Cuba is going through now, in the 1980s. Today, the Southeast Asian country is the world's third exporter of rice and a valued consultant to other rice-growing nations. "The climate and the temperature are very good for agriculture," but Cuban growers lack necessary farming products such as fertilizers, the Agri VAM representative told reporters. Though Agri VAM can import some materials, it faces other obstacles such as fuel shortages, transportation problems and frozen assets, Cuban economist Omar Everleny Perez and other sources with knowledge of the situation told AFP. Agri VAM and other foreign firms in Cuba may be making profits but "they cannot transfer them abroad because the banks have no liquidity, no foreign currency," Perez said. An independent Cuban media outlet, 14ymedio, recently published excerpts of a letter dated in May, in which Agri VAM asked the Cuban government to unfreeze $300,000 in its account at state-owned International Financing Bank. Vietnam's state press in May quoted deputy agriculture minister Nguyen Quoc Tri asking the government in Havana "to eliminate investment barriers that Vietnamese companies encounter." AFP contacted Agri VAM and Cuban officials but got no response. A truck unloads Vietnamese rice at an industrial dryer, in Los Palacios, Pinar del Rio province, Cuba, on May 29, 2025. - AFP Photo - Foreign investment: badly needed - Cuba is mired in an acute economic crisis and desperately in need of foreign investment. Vietnam and other allies have shown interest. In July, Cuban Prime Minister Manuel Marrero Cruz announced that Havana was taking measures "to energize foreign investment" as he authorized "wholly foreign-owned companies" in the hotel sector. After three years of promises, Russia's deputy prime minister Dmitry Chernyshenko announced in May that Russian businesses want to invest $1 billion in Cuba. Moscow will give them preferential financing rates, he said. But he cautioned that there is "still hard work to be done" and said it is "impossible to achieve things immediately, as if by magic." - AFP
