The Age of Automation
Supply chain professionals around the globe are scrambling to figure out how to accurately report on their business processes: it’s no wonder improving supply chain visibility is the top priority for 55% of manufacturing-related businesses, since achieving full visibility can bring a variety of benefits, including increased cash flow and operational efficiency. Combined with the fact that the supply chain management market will increase from $25.7 billion in 2022 to $72.1 billion in 2032, supply chain professionals have a lot of work on their hands to shore up costs and processes. But the golden question is: how?
Enter AI, which can automate supply chain processes, provide insight into processes, and give users the power to gain full control of the supply chain. With multiple new technologies and embedded products to choose from, supply chain professionals are realizing the power of the digital supply chain, and how it can benefit the bottom line.
Read on to see how AI arms supply chains with the necessary capabilities to execute their functions at the highest level.
AI Going to Work
AI significantly enhances Supply Chain Management (SCM) in various ways, making processes more efficient, responsive, and cost-effective. Here’s how:
- Demand Forecasting: AI can analyze historical data, market trends, and external factors to predict future demand more accurately. Machine learning algorithms can identify patterns and adjust forecasts dynamically, reducing overstock and stockouts.
- Inventory Optimization: AI helps optimize inventory levels by predicting the right amount of stock needed at each location. This reduces carrying costs and minimizes the risk of inventory obsolescence.
- Supplier Management: AI can assess supplier performance by analyzing delivery times, quality metrics, and compliance data. It can also identify potential risks and suggest alternative suppliers to mitigate disruptions.
- Logistics and Route Optimization: AI algorithms optimize delivery routes and schedules, considering variables like traffic, weather, and vehicle capacity. This can reduce transportation costs and speed up delivery times.
- Predictive Maintenance: In manufacturing and logistics, AI can predict equipment failures before they occur by analyzing data from sensors and historical maintenance records. This helps schedule timely maintenance and avoid costly downtime.
- Quality Control: AI-powered vision systems and sensors can inspect products for defects or quality issues more efficiently than human inspectors, ensuring higher quality and consistency in products.
- Risk Management: AI can assess risks related to supply chain disruptions, such as geopolitical events, natural disasters, or financial instability. It provides insights and recommendations to mitigate these risks.
- Automation: AI drives automation in warehouses and production facilities. Robotics and automated systems handle repetitive tasks such as sorting, packing, and material handling, increasing efficiency and reducing human error.
- Supply Chain Visibility: AI enhances end-to-end visibility by integrating data from various sources and providing real-time insights. This helps in track shipments, monitor inventory levels, and manage the overall supply chain more effectively.
- Customer Service: AI chatbots and virtual assistants can handle customer inquiries and provide updates on order status, improving customer service and freeing up human resources for more complex tasks.
Supply chains that implement AI typically see ROI including reduced logistics costs, improved inventory levels, and enhanced levels of service by as much as 65%. Supply chain professionals that are hesitant to add AI and other automation to their processes risk losing out on massive productivity and financial gains.
ConverSight can embed Athena in your ERP software, providing the visibility needed for full data transparency. Request a demo today and see how you can take advantage of generative AI for end-to-end visibility into your supply chain.
