Steve Britt

Special Guest Blog Post written by Gary Smith, CPIM-F, CSCP-F, CLTD-F, Author of “The Bridge,” Supply Chain Engineer, and Educator   1. Do Supply Chains exist in the public sector? The short answer is “YES!” I spent the first 25 years of my career in the private sector where I worked in warehouse operations, industrial engineering, and consulting, all in the logistics andsupply chain area. I cut my teeth on retail, automotive, chemical, food and beverage, publishing, and manufacturing. During that time, I also completed projects for the public sector in education and for the Department of Defense. In 2005 I was named Director of Supply Chain Operations for the New York City Housing Authority (NYCHA). We operated a 200,000 sq. ft. warehouse that shipped repair material to 335 developments in New York’s five boroughs. In 2013, I was named Vice President of Supply Logistics for New York City Transit, the largest public transportation organization in North America. We operated over 1.5 million sq. ft. of warehouse space covering all of New York City. Several years ago, I was on a national committee for the Association for Supply Chain Management (ASCM). We created this elevator speech to describe Supply Chain…

Companies are rapidly integrating generative AI into procurement and sourcing decisions. The promise is obvious. AI can read thousands of pages of supplier proposals faster than any human team, summarize technical requirements in seconds, and create the appearance of consistency and objectivity in evaluation. But there is an important distinction managers are starting to overlook. The same AI system that performs extremely well at identifying whether a supplier meets minimum requirements may perform much less reliably when judging which supplier is truly better. Recent research published in the Journal of Business Logistics examined this issue by comparing how large language models evaluated supplier bids against evaluations completed by experienced procurement professionals. It analyzed 123 supplier proposals tied to 31 public procurement projects conducted by the State of Ohio between 2023 and 2024. The projects involved complex IT services contracts, many containing large, text-heavy bid packages requiring evaluative judgment rather than simple arithmetic comparisons. The researchers tested three reasoning-oriented AI models: OpenAI o3, Grok-3-Mini, and DeepSeek R1. They then compared their evaluations against human procurement scores. The findings revealed a surprisingly clear pattern. AI performed well when evaluating compliance signals. These are signals tied to baseline qualifications and technical requirements. Does…