Enterprises are modernizing supply chains with AI-powered solutions that increase visibility, flexibility and resilience, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

There is a growing need in enterprises for both core supply chain platforms and targeted solutions. Specialized providers are meeting this demand by taking an AI-first approach and combining broad analytics capabilities with domain expertise.

The 2025 ISG Provider Lens global Specialty Analytics Services — Supply Chain report finds that a combination of distributed manufacturing, hyperlocal demand trends and multitiered supplier ecosystems are making supply chains more complex and harder to operate. Specialist analytics providers are helping companies transform their supply chains to minimize disruptions by enabling data-driven responses and preemptive actions.

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“There is a growing need in enterprises for both core supply chain platforms and targeted solutions,” said Bob Krohn, partner, manufacturing, at ISG. “Specialized providers are meeting this demand by taking an AI-first approach and combining broad analytics capabilities with domain expertise.”

Enterprise decision-makers are choosing AI-based solutions for functions including demand forecasting, inventory optimization and risk mitigation, the report says. Companies are increasingly aware that getting value from these solutions across areas such as inventory management, distribution, logistics and last-mile delivery requires a strong data foundation.

Many enterprises already have mature analytics capabilities for core functions such as demand planning and network optimization, ISG says. Advanced demand sensing and forecasting are now widely adopted across industries to provide adaptive forecasts. However, there are still large gaps in companies’ ability to integrate analytics and AI services into their workflows. Organizations are beginning to use AI-powered supply chain orchestration, with unified intelligence across the entire supply chain, to overcome these limitations.

Companies are adopting a combination of autonomous command centers and digital twins of supply chains to simulate end-to-end operations and gain real-time visibility, ISG says. By doing so, they can automate responses to disruptions and become proactive in managing supply chains. These solutions are quickly moving from pilots to large-scale deployments, especially in manufacturing and logistics within retail and consumer product industries.

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The integration of intelligence about supply chain risks and sustainability is still emerging but gaining momentum, especially among enterprises with many tiers of supply chains around the world, ISG says. They are using this intelligence to quantify the risks associated with suppliers and operations and ensure they are meeting environmental, social and governance (ESG) goals and mandates.

“Data and AI are essential for transforming supply chains,” said Manav Deep Sachdeva, senior manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “ISG believes investments in predictive and prescriptive AI will deliver significant value to enterprises seeking to optimize operations and minimize risks in their supply chains.”

The report also explores other supply chain analytics trends, including the growth of event-driven modeling and modular, plug-and-play architectures.

The 2025 ISG Provider Lens global Specialty Analytics Services — Supply Chain report evaluates the capabilities of 20 providers across one quadrant: Supply Chain.

The report names Fractal Analytics, HARMAN Digital Transformation Solutions, LatentView Analytics, Lingaro, MathCo, Sigmoid, Tiger Analytics and Tredence as Leaders in the quadrant.

In addition, Innover Digital is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

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Source – businesswire

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