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Supply Chain Agent iconAI Agent

Supply Chain Agent

Supply Chain Agent that automates supply chain workflows using your data and tools.

The challenge

Disruption is discovered when a delivery fails to arrive, not when the ship was delayed. Planners rebuild the picture from emails and phone calls, expedite at premium rates to recover the date, and the same supplier problems repeat because nothing is measured across the network.

The outcome

Azure Event Hubs ingests order and transport events, Azure Functions correlate them to the affected order lines, and Azure Machine Learning re-estimates arrival dates. A Microsoft Foundry agent scores the business impact; low impact reschedules automatically, anything touching a customer commitment reaches a planner.

At a glance

Type
ai agents
Category
industry

Next step

Move from solution to engagement.

Build This Solution

01 — Architecture

End-to-end architecture

Order, transport and supplier events stream in through Event Hubs and are correlated back to the order lines and customers they affect. Machine Learning re-estimates arrival dates, the Foundry agent scores the business impact and ranks the options — rescheduling inside tolerance and escalating anything that touches a customer commitment.

NETWORKPlanner /Supplierorders & signalsSIGNALSDynamics 365 /ERPorders & inventoryAzure Event Hubstelemetry & eventsINGESTAzure DataFactorysupplier feedsAzure Functionsnormalise & matchAI & AGENTMicrosoft FoundryAgentdetect & resolveAzure OpenAImodelsimpact narrativeAzure AI Searchcontracts & routesAzure MachineLearninglead-time modelsDATA & RECORDSAzure SQLorders & exceptionsAzure Cosmos DBevent & case stateAzure Key Vaultpartner credentialsACTION & INSIGHTPlanner decisionexpedite & resourceSupplierworkflowsnotify & reschedulePower BI / Fabricservice & exposureDEVOPS & DELIVERYGitHubsource control & CIDockercontainer buildContainer Registryversioned imagesAgent releasedeploy with rollback
Figure 1 — End-to-end reference architecture for a supply chain exception agent on the Microsoft stack.
  • Network: Planner / Supplier
  • Signals: Dynamics 365 / ERP, Azure Event Hubs
  • Ingest: Azure Data Factory, Azure Functions
  • AI & agent: Microsoft Foundry Agent, Azure OpenAI models, Azure AI Search, Azure Machine Learning
  • Data & records: Azure SQL, Azure Cosmos DB, Azure Key Vault
  • Action & insight: Planner decision, Supplier workflows, Power BI / Fabric

02 — Workflow

Process & decision workflow

How a disruption becomes a resolved exception — sense, correlate, predict, assess and propose, then branch. Low-impact slippage is rescheduled inside tolerance, while anything putting revenue or a customer commitment at risk goes to a planner with the options costed.

1SenseOrder, transport and supplier eventscollected2CorrelateEvents matched to orders, lines andcustomers3PredictArrival dates and shortfall riskre-estimated4AssessCustomer, revenue and production impactscored5ProposeExpedite, resource or reschedule optionsranked6ActChosen action pushed to supplier and ERPsystemsImpactwithin tolerance?Path 1 · low impactAuto-rescheduleDates updated and stakeholders notifiedPath 2 · customer or revenue at riskPlanner decidesOptions, cost and impact presentedOrder updatedNew dates, cost and reasonrecordedPartners notifiedSupplier and customer updatessentCloseexception resolved
Figure 2 — Sense → correlate → predict → assess → propose → impact branch → auto-reschedule or planner.
  1. Sense: Order, transport and supplier events collected
  2. Correlate: Events matched to orders, lines and customers
  3. Predict: Arrival dates and shortfall risk re-estimated
  4. Assess: Customer, revenue and production impact scored
  5. Propose: Expedite, resource or reschedule options ranked
  6. Act: Chosen action pushed to supplier and ERP systems
  7. Path 1 · low impactAuto-reschedule: Dates updated and stakeholders notified
  8. Path 2 · customer or revenue at riskPlanner decides: Options, cost and impact presented

03 — Components

Key Microsoft components

Supply chain exceptions are a correlation problem in real time — events, prediction, options and action all stay on the Microsoft stack.

  • Azure Event Hubs iconAzure Event HubsHigh-throughput ingestion of order and transport events.
  • Azure Data Factory iconAzure Data FactoryScheduled supplier, carrier and ERP feed integration.
  • Azure Functions iconAzure FunctionsNormalisation, order correlation and impact calculation.
  • Azure Machine Learning iconAzure Machine LearningLead-time, shortfall and supplier reliability models.
  • Microsoft Foundry Agent Service iconMicrosoft Foundry Agent ServiceDetection, option ranking and resolution orchestration.
  • Azure OpenAI models iconAzure OpenAI modelsImpact narrative and supplier communication drafting.
  • Azure AI Search iconAzure AI SearchRetrieval over contracts, routes, terms and prior cases.
  • Azure Logic Apps iconAzure Logic AppsRescheduling, supplier notification and escalation.
  • Azure API Management iconAzure API ManagementSecure gateway for carrier, supplier and ERP APIs.
  • Azure SQL iconAzure SQLOrders, exceptions, actions and cost records.
  • Azure Cosmos DB iconAzure Cosmos DBLive event and case state across the network.
  • Azure Key Vault iconAzure Key VaultPartner and carrier integration credentials.
  • Azure Communication Services iconAzure Communication ServicesSupplier and customer notification of changes.
  • Power BI / Microsoft Fabric iconPower BI / Microsoft FabricService level, exposure and supplier dashboards.

04 — AI

What the agent consumes

The capabilities the agent applies to every event, and the line it does not cross.

AI capabilities embedded in the agent

  • Event ingestion
  • Order correlation
  • Lead-time prediction
  • Shortfall detection
  • Impact scoring
  • Scenario ranking
  • Retrieval-augmented generation
  • Supplier performance scoring
  • Narrative generation
  • Alert deduplication
  • Exposure analytics
  • Workflow orchestration

AI responsibility boundaries

The agent reschedules only inside agreed tolerance and contracted terms. Expediting at cost, resourcing to a new supplier and anything affecting a customer commitment need a planner. It never changes contracted prices or terms, and every action records the trigger event, the options considered and the cost.

05 — Personalization

Personalization & evolving process

The same methodology applies to every agent in the catalog. Tune the network, the exception template, the tolerances and the value model — the page structure stays identical.

Network & supplier profile

Define the sites, lanes, suppliers, carriers, lead times and contracted service levels in scope. The personas are the supply planner, the buyer, the logistics coordinator and the customer service team.

06 — Impact

Key outcomes & business impact

Starting targets for the value case — validate each one against the customer baseline during discovery.

  • Exception detectionHours earlySlippage is visible before the delivery date is missed.
  • On-time deliveryImprovedMeasured against the current service-level baseline.
  • Expedite cost−30%Fewer late, expensive recoveries because action starts early.
  • Decision evidence100%Every action stores its trigger, options and cost.

Illustrative improvement index

Manual baseline = 100. Illustrative targets, not a commitment — confirm against the customer baseline.

10020Time to detect10070Expedite spend10045Planner firefightingManual baselineAI-assisted target
  • Time to detect: manual baseline 100, AI-assisted target 20
  • Expedite spend: manual baseline 100, AI-assisted target 70
  • Planner firefighting: manual baseline 100, AI-assisted target 45

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