At Synovia Digital, we’re fascinated by how AI is changing the way supply chains think — faster reactions, smarter forecasting, and deeper collaboration between technology and people. It’s a space we study every day, and here’s where we see it heading.
1) Predictive planning becomes the default
Planning cycles are compressing from monthly to continuous.
- Microsoft Dynamics 365 now ships Copilot and supply features in the 2024 Release Wave 2 plan (Oct 2024–Mar 2025), bringing natural-language insights and risk detection directly into planners’ workflows.
- SAP IBP keeps adding AI-assisted forecast analysis and explainability features that help planners compare model performance and tune accuracy without leaving the planning cockpit.
2) Digital twins make the network “live”
Digital twins let you model warehouses, lanes, fleets, and plants against real-time events before committing physical resources.
- Azure Digital Twins provides a PaaS graph of assets, spaces, and telemetry that you can query and visualize, then wire to ERP actions.
- SAP’s Digital Supply Chain portfolio (E2E SCM on BTP) positions twins and visibility as core to planning and execution alignment.
3) Autonomous logistics moves from pilot to platform
Execution is shifting from manual dispatching to AI-assisted orchestration.
- SAP Transportation Management integrates planning, carrier selection, and event handling, and exposes a product tour showing how to mirror transportation ops digitally.
- Dynamics 365 Intelligent Order Management uses policies and ML to re-route and rebalance orders across channels and nodes.
4) Sustainability analytics becomes operational
Sustainability leaves the annual report and enters the daily dashboard.
- SAP Sustainability Control Tower centralizes ESG data from SAP and third-party systems and embeds it into operations. Help docs and product pages detail capabilities and data capture.
- Microsoft Cloud for Sustainability (now “Microsoft for Sustainability” on Learn and product pages) aggregates emissions and activity data and surfaces it through analytics.
5) Humans + AI: the operating model
The teams that win won’t “replace” planners; they’ll augment them. The platform roadmaps above all focus on explainability, natural-language prompts, and embedded actions so humans can steer exceptions and strategy while AI handles heavy signal-processing.
What good looks like in 2026
- Predictive: Forecasts and risks update continuously in IBP/Dynamics — not monthly.
- Autonomous: Orders and transports re-route on policy, not email threads.
- Sustainable: ESG KPIs live alongside cost and service metrics.
- Integrated: Twins stream into ERP actions; planners review exceptions with Copilot/Joule-style assistants.
Challenges to expect (and how to handle them)
- Data contracts between IoT and ERP: define ownership, cadence, and schema early (BTP/Dataverse help).
- Model trust: lean on explainability features (IBP’s AI-assisted analyses) to secure adoption.
- Change management: pair Copilot rollouts with SOPs so actions triggered by AI are governed.
Conclusion
The supply chain of 2026 won’t be defined by who moves fastest, but by who sees earliest and orchestrates best. With SAP and Microsoft now baking AI, twins, and sustainability into the core stack, the edge goes to teams that integrate, govern, and iterate relentlessly.
Sources
- Microsoft — Dynamics 365 2024 Release Wave 2 plan: https://learn.microsoft.com/en-us/dynamics365/release-plan/2024wave2/
- Microsoft — “2024 release wave 2 launches with hundreds of Copilot capabilities”: https://www.microsoft.com/en-us/dynamics-365/blog/business-leader/2024/10/29/2024-release-wave-2-launches-with-hundreds-of-copilot-capabilities/
- Microsoft Learn — What is Azure Digital Twins?: https://learn.microsoft.com/en-us/azure/digital-twins/overview
- SAP — Supply Chain Management overview: https://www.sap.com/products/scm.html
- SAP — Transportation & Logistics (TMS) product page: https://www.sap.com/products/scm/transportation-logistics.html
- SAP — Transportation Management product tour: https://www.sap.com/products/scm/transportation-logistics/product-tour.html
- SAP Help — Sustainability Control Tower guide: https://help.sap.com/docs/SAP_SUS_SCT/fb87312681e94455b9f61c3b8fe83404/b192cf73f2aa49638eeb0308f8ece310.html
- SAP — Sustainability Control Tower product page: https://www.sap.com/products/scm/sustainability-control-tower.html
- Microsoft — Cloud for Sustainability: https://www.microsoft.com/en-us/sustainability/cloud
- Microsoft Learn — Microsoft for Sustainability overview: https://learn.microsoft.com/en-us/industry/sustainability/overview
- SAP Community — SAP IBP 2511 available now (AI-assisted forecast & inventory analysis): https://community.sap.com/t5/supply-chain-management-blog-posts-by-sap/sap-integrated-business-planning-sap-ibp-2511-available-now/ba-p/14243290
- SAP — AI-assisted forecast results analysis (demo asset): https://www.sap.com/assetdetail/2025/11/16dd2c91-297f-0010-bca6-c68f7e60039b.html
