How industrial leaders can avoid buyer’s remorse when investing in new technology

As the arms race for technology integration continues, supply chain leaders are looking over their shoulders, wondering how to avoid falling behind their competitors.

We’re living in a time with no shortage of options, which is both an opportunity and a challenge for business leaders as they navigate the complexities of selecting the right tech solution for their companies. Unfortunately, however, many fail to select the best-fit solution, with some reports indicating that nearly two-thirds of tech buyers experience buyer’s remorse shortly after investing in new software or platforms.

In this environment, supply chain organizations face three major pitfalls when evaluating new technology: following industry or competitor trends without proper scrutiny, making inaccurate assessments of potential solutions, and lacking the necessary partners and internal buy-in to realize the full potential of a purchase.

Here’s how business leaders can avoid these mistakes and maximize their return on investment.

Don’t give in to peer pressure

With the surge of AI tools, it can be tempting to make competitor comparisons and feel an urgent need to follow suit in order to stay competitive. Don’t. The AI boom has generated unprecedented excitement, but it has also opened the door for opportunists to exploit companies eager to jump on the bandwagon.

It’s important to remember that AI is not a silver bullet. Finding the appropriate problem for a specific use case will inform how to implement the right AI tool—or if you even need it. It’s not enough to implement AI for its own sake. Instead, it’s about picking the right business problem and applying an AI solution that will lead to business growth and/or savings.

Procurement leaders should stick to the basics and “trust but verify.” If a software company lacks compelling real-world case studies to support its claims, factor that into your risk-reward assessment. Are you willing to take the chance of being a beta tester for an unproven solution, or would you prefer to take a more cautious approach?

Lean on scenario planning

A thorough ROI analysis is often more complex than it may originally seem. Beyond the initial cost of a solution, planners must accurately quantify factors like the value of operational efficiencies. This makes it difficult to distinguish between empty promises and genuine benefits during the sales cycle. To do this successfully, the two biggest factors to assess are financial feasibility and operational execution.

In financial analysis, there are some important initial costs to consider. Start by developing an improvement metric to establish a baseline. This baseline, applied to factors like forecast accuracy and holding costs, allows for a meaningful evaluation of software that claims to reduce expenses. Once the baseline is set, planners can incorporate scenario analysis into their financial models to address questions like, “How will this platform perform if demand spikes for one of our products?” These insights will provide a clearer view of the potential risks versus rewards.

Implement effective change management

After thoroughly evaluating your business needs and setting clear benchmarking criteria, it’s time to select the best-fit solution. To increase your chances of making the right choice, consider enlisting an analyst or a consultant to help identify the software that aligns with your predictive analytics and automation goals.

Once that choice has been made, business leaders should focus on preparing their teams to maximize the new solution’s potential. Prior to implementation, develop a detailed plan that includes training programs, communication channels for questions, and a feedback loop to track progress and adjust processes in real time. These steps will help ensure a smoother integration and higher adoption rates.

Effective change management, often underestimated, is essential for a successful rollout. After the consulting team is gone and the technology is in place, following the prescribed workflows will enable your business to fully capitalize on the benefits of the software.

Conclusion

There’s no doubt that AI and other emerging technologies can drive businesses forward, but it’s important to first assess whether it's the right time for your organization. For example, if you’re relying on Excel sheets and basic forecasting without advanced segmentation, there may be improvements you can make with what you have before adopting something new. That’s why business leaders should return to the fundamentals and trust their instincts as proactive supply chain planners, not reactive buyers. Developing accurate benchmarks will reduce uncertainty and build confidence in your decisions, helping you avoid rushing into new technologies prematurely.

If you decide that your business is ready to integrate AI or other tech solutions, don’t be afraid to seek external expertise with proven success. Equally important is ensuring that your team is prepared for the transition—because without strong buy-in, the potential ROI of any new solution will never reach its full potential.

About the author:

Dan Luttner is managing partner at supply chain consulting firm Plantensive, a MorganFranklin Company.

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