NZ Supply Chains Get Boost from AI Agents

New Zealand's economy relies heavily on its supply chains, which have been exposed to various shocks in recent years. The Strait of Hormuz closure sent oil prices above US$100 a barrel, adding weeks to shipping routes and causing carriers to slap surcharges on cargo bound for New Zealand.

According to the DHL Export Barometer, 87% of New Zealand exporters faced higher shipping costs over the past year, while only 7% escaped supply chain disruption altogether. The pandemic, Ever Given's temporary blockage of the Suez Canal in 2021, and the latest crisis in the Red Sea have all highlighted the vulnerability of these chains.

Procurement is often overlooked as a key function in managing this exposure, but it plays a crucial role in deciding which suppliers to use, on what terms, with what alternatives, and how quickly to re-source when routes close or suppliers fail. Professor Ilan Oshri notes that procurement 'is the corporate immune system' in small economies like New Zealand.

However, most New Zealand organisations under-resource, manually operate, and lack AI integration in their procurement processes. New agentic AI systems can now perform entire multi-step tasks, discovering suppliers, preparing tenders, analysing contracts, tracking supplier performance, and continuously scanning for risk.