Introduction to Supply Chain: Chapter seven (The Future) - Ep 193
Joannes Vermorel and Conor Doherty discuss Chapter 7 of Introduction to Supply Chain, examining how supply chains should reason about the future under uncertainty.
May 6, 2026
Joannes Vermorel and Conor Doherty discuss Chapter 7 of Introduction to Supply Chain, examining how supply chains should reason about the future under uncertainty.
Supply chains abide by the general economic principles. Yet, these principles are too little known and too frequently misrepresented. Popular supply chain practices and their theories often contradict what is generally agreed upon in economics.
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The balance of supply and demand very much depends on prices. Thus, pricing optimization belongs to the realm of supply chain, at least to a sizeable extent. We will present a series of techniques to optimize the prices of a fictitious automotive aftermarket company. Through this example, we will see the danger associated with abstract lines of reasoning that fail to see the proper context. Knowing what ought to be optimized is more important than the fine print of the optimization itself.
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At the core of a Quantitative Supply Chain initiative, there is the Supply Chain Scientist (SCS) who executes the data preparation, the economic modeling and the KPI reporting. The smart automation of the supply chain decisions is the end-product of the work done by the SCS. The SCS takes ownership of the generated decisions. The SCS delivers human intelligence magnified through machine processing power.
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Generative AI in supply chain practical wins, limits, and the value gap. LokadTV with Joannes Vermorel and McKinsey Knut Alicke on what matters next.
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Rupert Schiessl (Bamboo Rose's Chief AI Officer) joins Lokad’s Joannes Vermorel (CEO) and Conor Doherty (Director of Marketing) for a discussion on how generative AI reshapes Product Lifecycle Management (PLM).
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A conversation with Joannes Vermorel, Adam Dejans Jr., John Elam, and Conor Doherty on how to make optimization practical for executives, covering culture, change management, and the real value of forecasting in supply chain.
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Scheduling is one of the most complicated areas of supply chain planning, and it doesn't matter what vertical you're operating in. In fact, most attempts at optimizing scheduling fail because they fundamentally miss the very problem they're trying to solve.
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FIFO is simple, but often costly. Discover why it fails in complex repair scenarios—and how AI and financial optimization offer smarter alternatives.
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In a recent discussion, Conor Doherty highlights the critical differences between a bill of materials (BOM) and a bill of resources (BOR) for effective scheduling in manufacturing and repair operations. While a BOM lists the raw materials needed for production, a BOR includes not only these materials but also the necessary tools and skills. Doherty emphasizes that neglecting any component of the BOR can lead to production delays and increased costs. He argues that a comprehensive understanding of both BOM and BOR is essential for optimizing efficiency and minimizing financial risks in industrial processes.
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Joannes Vermorel explains why ABC analysis remains a seductive but costly shortcut for supply chain decisions, and how its arbitrary classes can hide economic reality instead of clarifying it.
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Conor Doherty and Milos Vrzic return to Supply Chain Breakdown for a discussion on supply chain practice, planning, and execution.
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Conor Doherty and Joannes Vermorel discuss with John Elam & Adam Chans Jr the decision factory, a supply chain approach centered on automated, economically driven decisions.
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Joannes Vermorel and Conor Doherty discuss Chapter 7 of Introduction to Supply Chain, examining how supply chains should reason about the future under uncertainty.
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Joannes Vermorel and Conor Doherty discuss Chapter 6 of Introduction to Supply Chain, unpacking intelligence in supply chain, from AI and automation to systems of decision-making and supply chain as a productive asset.
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Joannes Vermorel and Conor Doherty discuss Chapter 5 of Introduction to Supply Chain, exploring information, immutable history, and smarter decision-making.
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Vinicius Tuppy, Material Planning Manager at Azul, explains how the company struggled with complex Excel-based tools and classical statistical models that lacked clarity and failed to properly balance cost efficiency and operational risks.
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Jacques Dauvergne (Director of the AFMAE Training Center) reflects on the 10-year anniversary of Air France & Lokad's supply chain optimization partnership.
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Interview with Elizabeth Peters on Spairliners’ decade-long collaboration with Lokad, exploring parts-pooling challenges and the commercial edge it provides.
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SMCP and Lokad described supply-chain management as economics, not ritual. Scarce inventory must be allocated where it earns the highest return. Instead of backward-looking “weeks of coverage” and cluster rules, they use probabilistic, store-SKU decisions, explicit about uncertainty, substitution, and capacity.
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Joannes Vermorel, CEO and Founder of Lokad, delivered a lecture in French, sharing his journey in Supply Chain management. Vermorel recounted founding Lokad after graduating from École Normale Supérieure and shifting focus from bioinformatics to Supply Chain challenges. He discussed the development of Envision, Lokad's programming language, and the company's evolution since 2007. Vermorel criticized traditional Supply Chain theories, likening them to astrology, and emphasized the importance of challenging consensus. He highlighted Lokad's success with probabilistic methods and the impact of COVID-19 on Supply Chain robotization. Vermorel predicted the obsolescence of traditional roles and encouraged students to drive the industry's revolution.
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Recorded in November 2024 in Paris, Conor Doherty (Communications Director at Lokad) reports on Lokad's second appearance at Supply Chain Event. This yearly French-language event is a major gathering of solution-providers in the industry. This time, Lokad hosted a panel discussion with French retail giant Maisons du Monde to discuss the intricacies of their supply chain partnership.
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