Supply chain management is poised to enter a new era. The Harvard Business Review has published a groundbreaking article co-authored by Andre Calmon, associate professor of operations management, alongside Flavio Calmon, Harvard University; Carol Long, Harvard University; and David Simchi-Levi, Massachusetts Institute of Technology. “The Age of Autonomous Supply Chains Has Arrived” explores how generative AI is transforming supply chain management from automated systems to truly autonomous operations.
Based on data collected at the Scheller College of Business, Calmon’s research demonstrates how AI models like Llama 4 Maverick 17B—equipped with optimized prompts, data-sharing rules, and guardrails—can outperform human teams in managing complex supply chains. Using the classic MIT Beer Distribution Game as a testbed, the authors benchmarked AI agents against more than 100 Georgia Tech students. The results were striking: AI-driven systems reduced total supply chain costs by up to 67% compared to human performance.
Traditional automated systems rely on rigid, human-designed rules. Calmon and his co-authors employed autonomous agents that learn, adapt, and coordinate across functions in real time. The study highlights four critical factors for success: selecting capable reasoning models, implementing guardrails to prevent costly errors, curating data through orchestration, and refining prompts for optimal performance.
“This breakthrough positions the Scheller College of Business as a thought leader at the intersection of AI and supply chain innovation,” said Calmon. “World-class supply chain management is becoming a plug-and-play capability. Businesses that understand how to guide generative AI agents with the right data and policies will gain a decisive competitive edge.”
The implications extend beyond cost savings. By delegating operational decisions to autonomous systems, human managers can focus on strategic priorities such as network design and supplier relationships. In an era of global volatility, this research emphasizes how future supply chain success depends on the strategic use of AI-driven technology.
