Why franchise supply chains need AI to stay competitive
AI is no longer just a nice-to-have tool that may be useful in the future; it’s now an essential part of life, changing how businesses operate in procurement, supply chains, and franchising.
This is according to Vilochanee Reddy, the Head of the Chartered Institute of Procurement and Supply (CIPS), who spoke at a recent mentorship breakfast hosted by Nedbank Retail Franchising and Franchise Coaches.
Reddy highlighted how most major brands are now routinely using AI, which has gone from being a back-office function to a strategic powerhouse.
She warns that businesses that don’t embrace this new technology risk being left behind.
“International brands like Starbucks, McDonald’s, and Burger King use AI not just for operational efficiency, but to reach customers in a personal, targeted way,” said Reddy.
“Smaller players like Juici Patties are already using AI to predict stock needs, improve store hours, and boost sales. In South Africa, SPAR, Woolworths, and Total are investing heavily in tech to keep up.”
However, adopting AI isn’t a simple process, as data privacy and cybersecurity are major concerns, and integrating multiple different systems can be very complicated, added Reddy.
Evolution of AI
While generative AI has become a standard tool for many companies, the next step in AI evolution is agentic AI, which enables greater autonomous action.
This includes automating financial and support team processes and adjusting supply in real time.
“Multinational retail giants are already using these tools, and soon, each of us may have multiple AI agents helping us manage daily tasks,” said Reddy.
She also noted that success is driven by adaptability, with staff training, system integration, and ethical data use making all the difference.
How Nedbank supports companies
It can be overwhelming for a business to adopt AI, so Reddy recommends starting small with repetitive tasks and training before moving from reactive to predictive operations.
She also noted that AI must never replace human roles entirely and that human-centred AI creates safer, skill-based roles.
Karen Keylock, National Manager for Retail Franchising at Nedbank Commercial Banking, said that Nedbank understands these challenges and has taken steps to support its clients, allowing retailers to tap into its industry knowledge to track trends and prepare for future changes in the retail sector.
She added that, along with this, Nedbank’s experts and collaborators support retail sector stakeholders in navigating economic shifts and embracing new opportunities.
“At Nedbank, we believe our role goes beyond offering best-of-breed financial products in the market, to providing access to up-to-the-minute insights on major shifts and trends in the industry,” said Keylock.
“Through our collaboration with Franchise Coaches, we create opportunities for franchisers to learn from leaders like Vilochanee and translate those learnings into practical strategies for growth.”
The future of AI in franchising is no longer coming; it’s here, and companies need to embrace it.
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