Artificial intelligence (AI) is transforming supply chain management. From task automation to accurate predictive analytics and transportation optimization. In this blog post, we will look at the top seven ways artificial intelligence is transforming supply chain management by increasing efficiency and lowering costs.
Supply Chain Automation
Consider having a virtual assistant handle all of your repetitive and error-prone tasks, giving you more time to focus on more important tasks. That is exactly what artificial intelligence is doing for the supply chain industry. AI enables supply chain automation technologies such as digital workers, warehouse robots, and self-driving cars to perform these tasks automatically.
Intelligent automation that combines conversational AI with robotic process automation can handle back-office tasks such as document processing. Transportation can also be automated using AI. Companies such as Amazon, Tusimple, and Nuro are investing in self-driving cars. In warehouses, artificial intelligence-enabled technologies such as cobots are increasing efficiency, productivity, and safety.
Accurate Predictive Analytics/Forecasting
Artificial intelligence-enabled demand forecasting can significantly improve forecast accuracy. Thus resulting in higher inventory levels and lower demand and supply fluctuations. Reduced stock-outs and backlogs, as well as lower storage costs, are among the advantages. The potential costs include the initial investment in forecasting software as well as employee training on how to use it.
However, AI is more than just automation. In terms of transportation optimization, AI can assist in determining the most efficient routes for goods, resulting in lower transportation costs and shorter delivery times. Lower operating costs and increased customer satisfaction are some advantages. The costs include the initial investment in transportation optimization software as well as employee training on how to use it.
Chatbots and Virtual Assistants
These technologies can handle customer inquiries and complaints, allowing human customer service representatives to focus on more complex issues. Improved customer satisfaction and reduced workload for human employees are among the advantages. The potential costs include the initial investment in a chatbot or virtual assistant software as well as employee training on how to use it.
AI can assist in the review and analysis of contracts to ensure they are in accordance with company policies. The advantages include reduced error risk and improved compliance. The potential costs include the initial investment in contract management software as well as employee training on how to use it.
Artificial intelligence can be used to monitor and inspect goods to ensure they meet quality standards. The advantages include higher product quality. As well as a lower risk of defective products reaching customers. The potential costs include the initial investment in quality control software as well as employee training on how to use it.
Incorporation of AI Into Blockchain Technology
Supply chain managers can have a more transparent and secure way of tracking goods, ensuring they are handled properly and arrive at their destination on time, by incorporating AI into blockchain technology. Improved traceability and security are among the advantages. The potential costs include the initial investment in blockchain and AI technology as well as employee training on how to use it.
Future of AI for Supply Chain Management
So, what does the future hold for artificial intelligence in supply chain management? By 2026, the global AI supply chain market is expected to be worth $13.5 billion. As AI advances, we can anticipate more integration of this technology into the supply chain industry, resulting in even greater efficiency and cost savings.
Finally, supply chain automation, accurate predictive analytics/forecasting, transportation optimization, chatbots and virtual assistants, contract management, quality control, and the incorporation of AI into blockchain technology are the top seven ways AI is transforming supply chain management. Supply chain managers can maximize efficiency and reduce costs by implementing these AI applications, resulting in a more successful and resilient business.