Don’t get lost in an AI world

Hello, and welcome to this week’s edition of Straight Talk. Inside, we discuss:

• AI and hiring

• As the tariffs turn

• Supply chain salary updates

• The key to a manufacturing comeback

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AI, hiring and the missing skillsets

As artificial intelligence continues to transform every corner of the supply chain, from forecasting and procurement to logistics and planning, it’s tempting to believe that technology alone will drive the next era of progress. But a closer look, particularly at the hiring process and team collaboration, reveals an inescapable truth: the human element still matters. And in many ways, it matters more than ever.

Norman Katz, president of supply chain consultancy Katzscan Inc. and a regular Supply Chain Management Review columnist, looked at the findings of the “2025 Skills Report for Supply Chain and Procurement” report from Skills Dynamics. What stood out most to him, he said, wasn’t the latest hard-skill demand or software trend, but rather the enduring need for something much older: interpersonal skills.

From Katz’s article (which you can read here):

“For the question ‘What, if any, skills do you look for in new/prospective procurement professionals,’ the top requirement named by 62% of the respondents was interpersonal skills.

For the question ‘What, if any, skills do you look for in a supply chain team member,’ the top requirement named by 75% of the respondents was interpersonal skills.

For the question ‘What, if any, skills do you feel are important to your role,’ the top answer was interpersonal skills.”

Katz’s takeaway: Soft skills matter. “I have to wonder how AI will ascertain from a resume whether a person has interpersonal skills, allowing that resume to move on to the next step in the hiring process,” Katz asked.

Automating hiring

Anyone that has looked for a job in the last 10 years has likely run into automated hiring process. It often starts with uploading your resume, and then takes you to an online form where you either have to correct all the incorrect information that has been auto-filled, or fill out the form with the same information from the resume. Moments later, after hitting the submit button, you receive an automated email thanking you for the interest in the position, but “after careful consideration and a thorough evaluation of your qualifications, we have decided to move forward with other candidates that more closely match the requirements of the position.” A human didn’t do that.

While technology, and AI specifically, has streamlined the hiring process, the point Katz makes is not whether it provides value, but whether it provides the right value. Case in point: I recently had the opportunity to interview several candidates for a position within our parent company, Peerless Media, to assist the hiring manager. Looking at the resumes, there was, in my mind, a clear advantage to one of the candidates. But, once I had the chance to interview them, there were clear differences to me and whether they each would be successful in the role. The point is that some people are skilled at filling our resumes or automated application systems with the right keywords, but that doesn’t always translate to the skills that matter most. Is AI missing these?

It's a question HR professionals across the supply chain should be asking. While AI can analyze keywords, job history, and certifications, it can’t yet judge empathy, collaborative ability, or communication style with any meaningful accuracy. These traits are essential for building relationships across internal departments, with suppliers, or when managing exceptions in real-time operations.

Hiring managers agree: Soft skills matter

Multiple studies confirm this. According to the 2023 LinkedIn Global Talent Trends Report, 92% of talent professionals and hiring managers say that soft skills are just as important, if not more so, than hard skills. Another study by the Society for Human Resource Management (SHRM) found that 77% of employers say that interpersonal skills are among the most difficult to find but among the most important for success.

Moreover, a 2024 Pew Research Center study revealed that 85% of workers rate interpersonal skills as either extremely or very important to their job success. The same study highlights that while digital skills are being prioritized, interpersonal communication remains a differentiator, particularly in roles that require cross-functional collaboration and customer interaction.

Supply chain is all about cross-functional collaboration. Do soft skills matter here? I’d dare you to find one manager that says they don’t, yet we are increasingly relying on AI to identify and find the perfect candidate in the name of efficiency.

This gap between what AI can do and what human relationships require is not limited to hiring. Across the supply chain, technology can identify patterns and optimize routes, but it takes people to manage the exceptions, soothe the stakeholders, and foster trust.

“If companies apply the same due diligence and process quality to the sourcing of their procurement and supply chain professionals as they do to their suppliers and vendors, they will be assured of acquiring the best talent with the right interpersonal skills to integrate to their organization and engage with their supply chain partners. People matter the most. Don’t shortcut this most critical supply chain process,” Katz wrote.

The truth is, AI can support great talent. It can empower teams with faster insights, reduce administrative overhead, and help identify trends before they become problems. But it can’t, as of yet, replace the human relationships that bind the supply chain together. Until it can (if it ever can), we need to invest in people—not just technology.

On again, off again

The ongoing saga of the Trump Tariffs took another turn this past week when a federal court, the Court of International Trade, ruled that President Donald Trump doesn’t have the authority to unilaterally place tariffs on foreign countries under the 1977 International Economic Powers Act, which has been cited in most of the Executive Orders on tariffs. “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court wrote. The ruling, which was immediately appealed by the administration (and may have already changed again by the time you read this), eliminated most of the “Liberation Day” tariffs imposed by Trump, including the universal 10% tariffs and tariffs placed on China. It left in place tariffs imposed under national security justifications, including those on steel, aluminum, and autos. It’s just another moment in time in the continuing uncertainty that supply chains are facing in 2025. You can read more here.

Value proven

The Association for Supply Chain Management recently released its annual Salary and Career Report. Among the highlights is that median U.S. supply chain compensation has reached $103,000 including bonus, with the base salary 52% above the national median. People are also generally happy with their career choices, with 81% reporting high satisfaction levels and 85% expressing pride in their roles. Almost as many—83%—would recommend a supply chain career to those seeking a change or students. That last point is important, but it is incumbent on the industry to turn that positive sentiment into action. How do we, as leaders in the space, communicate to those outside the industry, or those in high school or college, that supply chain careers are not only valuable, they are rewarding and most importantly, offer career opportunities and not just a “job” opportunity. It starts, in my opinion, with individuals and their companies reaching out to communities and getting involved. Whether that is participating in charity events or school career days, involvement in local chamber of commerce gatherings, or more formal partnerships with educational institutions, it starts with all education. Associations like ASCM help, but it starts with each of us. You can find the full salary report here.

What I read this week

Colby Porter, lead analytical content manager at Sayari, joined the In Transit podcast to discuss the blind spots hampering supply chain compliance. … The agricultural supply chain plays a critical role in humanity, but it is still quite antiquated. … The electronics supply chain is in search of certainty, as it navigates a new world dynamic. … MIT’s Yossi Sheffi says that any U.S. manufacturing comeback will depend on education, and not politics. … The terms 3PL, 4PL and now 5PL populate supply chain conversations, but what is the difference between them? … Shippers are once again scrambling to understand the landscape for inventory and sourcing management strategies following another change in the tariff rules.

Thank you for reading,

Brian