With its power to dramatically increase efficiency throughout the supply chain, essential products are exploring the benefits of AI. Here are four examples of how AI can benefit your supply chain.
The main news
- It is estimated that supply chain organizations could gain $1.3 to $2 trillion annually when they use AI.
- Machine learning has the ability to quickly access supply chain data by relying on algorithms and constraint-based modeling to find the most influential factors.
- The increasing popularity of chatbots makes it hard to ignore that AI is helping to shape not only day-to-day logistics, but also the landscape of B2B marketing and procurement for supply chain industries.
Artificial intelligence is not just impacting supply chain management. Revolutionary it is.
With the power to increase efficiency significantly In all sectors of the supply chain, McKinsey Companies estimate that AI in supply chain and manufacturing could make $1.3 trillion to $2 trillion a year.
Here are 4 examples of AI and how it is changing supply chain management for the better.
1. Independent transportation
There is nothing more exciting for the field of SCM autonomous transport. We all know each other for many years Driverless trucks have the potential to impact supply chain management and logistics..
We’re not there yet – and “Anyone employed as a driver today can retire as a driver.” – but the technology will be viable if it can be developed with the potential of autonomous freight transport. Double the production of the American transportation network at 25 percent of the cost.
The conversation is no longer just about the vehicles on the road. Google and Rolls-Royce recently partnered to build Independent ships as well as.
2. Efficiency of last mile delivery method
However, one should not have a driverless vehicle Use AI to optimize delivery logistics.
For example in “too complicated” For the task of delivering 25 packages in a van, the number of possible routes increases to around 15 septillion (that’s a trillion trillion).
That’s where route optimization software and AI-powered GPS devices come in handy. Orion – which UPS uses to create the most efficient routes for its fleet – are making their mark. With ORION, customers, drivers and vehicles input data into the machine, which then uses algorithms to create the most timely and convenient routes based on road conditions and other factors.
And besides cars, trucks, and ships, there are other autonomous entities. Robots using LIDAR technology are used to deliver goods in congested urban areas. for example, Marble Robots deliver medicine, groceries and packages, as well as monitor their routes and conditions, to continuously improve delivery for the next time. in addition, Last mile solutions with drones Their ability to move quickly and overcome almost all ground-level obstacles continues to be tested.
3. Demand forecasting, especially warehouse management and SCM strategy
Machine learning It has the ability to quickly access supply chain data, relying on algorithms and constraint-based modeling to find the most influential factors. This ability to discover data patterns without human intervention has applications in all aspects of SCM, but demand forecasting is a particularly impactful component user.
Warehouse management and SCM strategy relies heavily on accurate supply, demand and inventory based management. Predictive engines with machine learning provide a whole new level of intelligence and predictive analysis of large data sets An endless (and constantly self-improving) prediction cycleImproving the way we manage inventory and creating new strategies for our industries.
4. Chatbots for marketing and operational procurement
The increasing popularity of chatbots makes it hard to ignore that AI is helping to shape not only day-to-day logistics, but also the landscape of B2B marketing and procurement for supply chain industries.
A chatbot is a computer program that imitates human speech through voice or text. It communicates with your customer in a messaging app. Facebook Messenger, and it’s similar to email marketing without landing in the inbox. By mimicking human conversation, chatbots allow messaging apps to maximize customer engagement, which is currently underserved by marketing. They are just one of them. Many ways to integrate AI and marketing.
There is much more than just these 4 examples to consider when discussing. AI and supply chainForecasting of arrival times to the warehouse and to the customer, cargo sensors, automated procurement, financial applications… the list can be literally endless.
Choosing what to focus on for this article, and more importantly for all supply chain and logistics businesses, is a tough decision, but one thing is clear: In the “arms race” to use AI in SCM, Some will come out on top and some will be left behind.