Artificial intelligence (AI) has exploded onto the business scene in recent years. If you’re not already using it in some part of your business, you’re likely aware that it exists. One significant benefit AI brings to businesses in multiple industries is the ability to analyze large amounts of datasets.
AI for business analytics is one effective way in which the technology is positively impacting supply chains and logistics. Get ready for AI by learning how you can use it to transform your supply chain.
The Impact of Artificial Intelligence on the Supply Chain Industry
While businesses have been attentive to supply chain and data analytics for decades, the importance of supply chain management stood front and center due to delays caused by the COVID-19 pandemic. Thankfully, technology is advancing to improve the supply chain just when we need it the most.
In supply chain management, common technology includes generative AI for data analytics, which creates reports based on data analysis as well as other data analysis and reporting software. Most of these platforms use natural language processing and machine learning and predictive analytics to train the software and make it smarter.
Here is how AI is helping the supply chain industry.
Predicting Demand and Forecasting Inventory Levels
AI-powered data analytics tools offer useful information about customer preferences and demands. Unlike your human data analysts, AI can sift through mountains of data and identify helpful trends forforecasting.
These data-driven analytics help you plan for customer demand by ordering enough inventory to fill customer orders without having to store a lot of excess merchandise. Predictive analytics in supply chain management help you anticipate and plan for future market conditions.
AI for data analysis can help you reduce product unavailability, which improves the customer experience. These valuable insights allow you to meet and exceed customer expectations.
Streamlining Operations for Maximum Efficiency
Artificial intelligence and data analysis tools are not limited to customer data. You can also use them to assess and improve your operations. AI-powered supply chain analytics software evaluates shipping and delivery routes, helping you optimize them to deliver goods to customers faster.
Use these tools to organize and manage your docks so your team is always getting the right products to the right places. With inventory management data, you can efficiently move items from ships to docks to trucks faster. All of this while minimizing costly errors.
You can also manage the most minute details of your supply chain, such as tracking returnable containers. Reduce your packaging needs and your carbon footprint with real-time visibility on your shipping containers.
Keep your human workers more productive by automating repetitive tasks such as document management and invoicing. AI can extract and evaluate data from invoices to validate it for accuracy and route the invoice to the right place for approval. Your team won’t have to search for paper invoices and wait for manual signatures.
Navigating Supplier Relationships
The right supplier relationships are essential for maintaining customer satisfaction. To use AI for data analytics helps you evaluate potential suppliers and other partners to identify and mitigate potential risks.
Data analytics tools can examine each supplier’s past performance so you can make informed decisions about their capability to meet your customers’ needs. Machine learning models can use historical data to forecast a supplier’s future performance. Reports generated from an AI-powered analysis process also give you actionable insights.
For example, you may find a desirable supplier on paper. But your artificial intelligence data analytics platforms could highlight potential geopolitical concerns that make the supplier risky. Geopolitical risks include anything from ongoing conflict in a region to extreme weather that could potentially disrupt your supply chain.
Additionally, AI can evaluate contract terms and conditions to identify potential red flags.
Making Smarter Decisions With Real-Time Insights
Artificial intelligence predictive analytics and other data analysis gives you tools for data-driven decision-making. Some uses include optimizing inventory based on real-time supply and demand and current inventory levels, and shifting delivery routes when problems arise.
AI gives you insight into changing market conditions and customer preferences and helps you adapt. You can analyze multiple market reports and case studies to learn what your competitors are doing and how it could impact your business.
For example, before Amazon your customers didn’t expect 2-day delivery of merchandise they ordered online. However, the e-commerce giant made this a standard within the industry, and other businesses needed to adapt their supply chain management to compete.
Optimizing Delivery Routes
You can make your delivery routes more efficient without AI, but artificial intelligence makes it more effective. AI can analyze traffic and weather patterns all day in real time and send you alerts when one of your drivers may need to alter their route.
AI also analyzes historical data and uses machine learning to help you plan routes based on predictive analysis. AI can assess vehicle capacity, delivery windows, and other data to refine its algorithms and develop the best route for each driver.
How Will AI Continue to Revolutionize Supply Chain Technology
As AI improves, you will likely see more analytics solutions on the market to help you improve every part of your supply chain. Data analytics tools can alert you to developments that could impact your supply chain.
For example, AI can track global news and weather reports to predict a potential natural disaster that could disrupt your plants or shipping partners. With this data, you can make alternative plans to keep your customers satisfied.
Harness the Power of AI in Your Supply Chain Operations
Surgere offers a supply chain management solution that analyzes your supply chain to help you make data-driven decisions. Our solution uses natural language processing and deep learning algorithms to help AI accurately analyze your data and generate useful reports.
Our solution is chosen by industry leaders across the globe to maximize supply chain efficiency. We can boost any part of your operations from production control to dock management with real-time analytics and reporting. Improve your supply chain visibility and access the information you need to deliver on your promises.
Contact us today to learn more.
