AI in Supply Chain: Uses Cases of AI in Supply Chain Management
Supply chain management plays an important role in the current era of high demand for supply, which stimulates competition and demands uncertainty. Supply chain management centers refer to a company’s ability to coordinate and manage equipment procurement processes; turning them into complete objects; and deliver them to clients.
Recognizing the growing importance of success and information of supply chain, professionals in supply chain management are investing in better business decisions and better control of information. Solution providers are adopting AI technology to improve the workflow and productivity of the supply chain.
AI in Supply Chain
Growing deployment of AI in supply chain management is also owing to several fantastic factors such as visibility in supply chain procedures and data, and demand for better transparency. Increasing adoption of Big Data technology is another driving factor driving for artificial intelligence in logistics and supply chain management related market for better customer satisfaction and service.
Furthermore, expanding interest for precision and wellbeing in distribution centers would drive the development of AI in the supply chain industry in the near future.
Many organizations are getting benefited by investing in Artificial Intelligence technology. Recent research by McKinsey found that and 53% of executives reported increased revenue and 61% reduced costs by introducing AI into their supply chains.
McKinsey also predicts a company to pick up between $1.3tr and $2tr a year in economic value by embracing AI in their global logistics and supply chains.
Recommended To Read: Top 5 Examples Where AI Is Used
Here, we are going to cover the topics that describe the best uses cases of AI in supply chain management.
Top Use Cases of AI in Supply Chain Management
Predicting Customer’s Behavior
Consumers are sometimes whimsical; they will change their mind suddenly. They may cancel their placed order even if the order is about to deliver and this just leads to the waste of time and effort on your logistics.
This kind of order process can lead to abuse and productivity loss among your logistics team. Therefore, it is difficult to pinpoint volatile customer behavior due to a surplus of orders from online retailers.
This unpredictable order pattern can lead to abuse and unnecessary productivity loss among your team. It is very tough to pinpoint volatile consumer behavior due to the order delay from e-commerce retailer network. Therefore, the ability to attend to volatile order volumes is a challenge for many companies.
But, Machine Learning and Artificial Intelligence will provide you with the freedom to assess the volatile nature of consumer behavior at the right level in such situations. So, we can reduce the time and manual errors in order to contribute more assets for business development.
Mitigating the charge-back risks
Customers can demand chargeback/ penalties from brand proprietors when products delivery got delayed. Subsequently, brand proprietors or business partners need to pay penalties for late deliveries.
Using AI technology integrated with deep learning, it’s very simple to shuffle through the required data that includes the order types, placement, type of shipment and location. It helps to find the main reasons of chargeback. On the other hand, it supports analyzing the reason for failure.
Sensing Market Situations
Noticing market patterns and marketing behavior is the most important aspect for staying updated in business and providing better assistance to the consumers. AI will utilize real data from several external sources that include employment history, industrial production, and weather.
When it comes to processing data from this sourcing, the app better assesses the growth drivers and market analytics. Artificial intelligence can reshape the abilities of the supply chain by expanding capital use, sensory skills and portfolio of products.
Improving accuracy in the tracking of departing and arriving orders
Tracking the navigation route of online order to load the warehouse with the advanced product line is crucial in the supply chain. Since there are manual errors in the path of order alignment, it is not possible to place the resources correctly.
The Items that could not move for a long time in the warehouse are pushed backwards and then replaced with fast-moving materials. It will be really a big task for retailers to move old items out of the warehouse if there is no proper planning and implementation.
Hence, AI algorithms will inflate the departure and arrival of the goods in and out of the warehouse, which aims employees keep the pallet in proper position and release the goods as per their shelf life. Online businesses will become smarter, utilizing AI-based software in their logistics and supply chain.
Also Recommended To Read: AI in the Transportation Industry
Increasing Fleet efficiency
The most important thing in the supply chain is delivering products to the destination on a given timeline. It just takes a minute to break or make the brand value. It is a known fact that it is impossible to predict what will happen while the vehicle is on the way to deliver products.
In such a situation, the AI-controlled GPS permits better route for your vehicle. This AI software will help you find the most feasible path for delivering products by processing driver, consumer and vehicle information.
At the same time, it will help you reduce cost, time, and the tear and wear of truck tires. According to research reports, it is believed to use the latest AI integrated GPS for logistics and supply chain delivery; users will save $ 50 million (Approx.) per year.
AI improves customer experience.
According to the report from Pega, 38% of customers believe that Artificial Intelligence will improve customer satisfaction.
AI software personalizes customer relationships with global logistics suppliers. Using AI inventory, consumers can utilize the voice-based service to track the placed orders. If any issues arise, customer can directly speak with the customer service team, which is very beneficial to resolve the issue in a less span.
Also Recommended To Read: The Revolution of Artificial Intelligence Technology
AI technology has made the whole supply chain process simpler and precise. This will avoid human work, which is essential for organizations that need to minimize errors and costs as well.
Meanwhile, Artificial Intelligence is proving beneficial to various areas of logistics and supply chain management, inciting more organizations to deploy it into their work environment.
With the rise of AI at breakneck speed, many businesses are already invested in this amazing technology to manage their supply chain. The output is whole automation from production to product delivery with an overall development in speed and efficiency.
If you would like to adopt Artificial Intelligence in your business, please contact us.
USM Business Systems is a pioneering technology partner serving a wide range of industries with AI solutions. With its array of digital technology solutions, USM helps supply chain companies to improve operational performance and change the way logistics and supply chain work.
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