Utilizing people, analytics, and AI for decision making in the digitalized retail supply chain

Abstract

Our research reveals the continued and evolving role of the human factor in decision making in digitalized retail supply chains. We compare managerial roles in a pre- and post-COVID era through conducting in-depth interviews of 25 executives spanning the retail supply chain ecosystem. We use grounded theory to develop four main contributions. First, we find that the involvement of managerial judgment is found to be progressively greater moving up the retail supply chain, away from the customer and the demand signal. Second, integration of analytics and judgment is now the primary method of decision making, and we identify elements needed for success. Third, we develop an essential framework for a successful integration process. Fourth, we isolate the necessary components of a successful process for analytics/artificial intelligence (AI) implementation. Our paper offers important insights into how analytics and AI are—and should be used—in judgment and decision making and opportunities for researchers to understand the changing role of the human factor in digitalized retail supply chains.