Supply Chain Optimization with AI and Analytics

The next wave of the two most prominent technologies artificial intelligence and data analytics, is already making a hit. Where several industries are still pulling doors to overcome the post-pandemic effects, there are a few industries that took the opportunity to adopt these modern technologies at a large scale.

The main objective of using AI in supply chain and logistics is to increase efficiency and productivity. This digitization in supply chain management has led to more sustainability, making every enterprise wonder if digital transformation at this scale can benefit their respective supply chain business.

So if you are not sure what AI and analytics can do to your supply chain business, this article is just what you need to clear all your doubts. Let’s look at how AI impacts the supply chain and how modern supply chain management brings the workforce, machines, and software into action. 

 

Modern supply chain management driven by Artificial Intelligence and Analytics

Using AI-based solutions in supply chain and logistics refers to the process where smart machines can perform problem-solving tasks. This automated process of smart industry manufacturing run by IIoT (Industrial Internet of Things), can drive the entire supply chain without any manual participation.

Enterprises that use AI in the supply chain aim to make the supply chain business more: 

• Instrumented – machine-generated data flowing out of IoT devices
• Intelligent – more accurate and competent assumptions with the help of data analytics and modeling 
• Interconnected – extensive connectivity for better decision-making 

 

Benefits of investing in AI and supply chain analytics 

Given the significant business value at stake, multiple supply chain vendors and distributors are entering the competition. The new competition in the supply chain business includes demand planning (revolutionized by data analytics and machine learning), real-time inventory management (controlled by IoT and connected systems), and end-to-end dynamic margin optimization within the supply chain industry (driven by AI-based solutions). 

 

Below are the primary reasons: 

1. Simplified inventory management

Let’s not forget that well-organized inventory management is the foundation of the supply chain business. The analytics-based machine vision software can minimize the standard manual input and create accurate forecasts. The AI systems also interpret real-time machinery data that continuously monitors the inventory and stock in the warehouses. 

 

2. Access to future insights 

The AI ecosystem allows the supreme level of agility to the supply chain business. The same goes for the use case of data science for supply chain forecast, where you can determine your client’s needs before they even know it. This is like entering your supply chain enterprise into the future to achieve the maximum customer satisfaction level. 

 

3. Enhanced 360-degree visibility and responsiveness

Artificial intelligence in the supply chain allows your business to gather relevant past and current data from multiple connected devices. This includes implementing the SRM software, CRM and ERP systems to existing data through business intelligence services. This way, you can evaluate the performance on a broader scale. Similarly, supply chain data analysis also predicts and minimizes risks and negative impacts on the distribution channels. 

 

4. Improved customer experience 

This cannot be stretched enough that big data and artificial intelligence have taken the customer experience to a whole new level. These solutions allow the supply chain to create personalized products based on the current user demands. One widely used instance can be modern transport and logistics using voice-activated means of tracking shipments and orders. This goes both ways where even the customers can perform the voice-activated query search using Alexa or Google assistant. 

 

5. Increased fleet efficiency 

The essential task in supply chain management is on-time product delivery. The advanced AI-based GPS tools enable better navigation and optimization of the route for fleeting and transportation. These tools access the most effective route for product delivery by processing the driver, vehicle, and customer data through machine learning. Simultaneously, they help you save both time and money for future shipments. 

 

6. Competitive edge

Observing the market trends and patterns is the key to staying ahead in the supply chain business. AI in supply chain analytics can harness real-time data from external resources such as industrial production, weather, and employment history. With all the accumulated data, you can better gauge the market conditions and assess upcoming demands for stable growth. 

 

Make your supply chain business future-ready

The benefits of artificial intelligence in supply chain management are indispensable. AI is a commonplace technology for the supply chain now that enterprises of every scale and size have adopted its extensive applications. Given the current scenario, every supply chain business model needs to be critically integrated with AI and analytics solutions for optimization. 

Therefore, If your supply chain business still lacks the above-discussed modern solutions, it’s high time to choose AI development services for your enterprise.