4 ways artificial intelligence will impact the supply chain

Latest Forbes Text A special focus on how supply chain companies are enhancing their growth with artificial intelligence. And, with Powerful statistics It’s easy to see why companies like these are investing in AI.

  • AI technology can increase business productivity by up to 40%.
  • 84% of global businesses believe AI will give them a competitive advantage.
  • In the year By 2025, the global AI market is expected to be around $60 billion. In 2016, it was 1.4 billion dollars.
  • AI startups have grown 14 times over the past two decades.

But after reading the Forbes article, I was left wondering about the practical applications of AI in the industry. Here are four examples of how AI can be beneficial to the supply chain.

4 ways artificial intelligence can benefit your supply chain

1) Independent vehicles

We’ve all known for years that driverless trucks will have a huge impact on the supply chain. And while we’re not there yet, if it can be developed with the potential of autonomous trucking, the technology could allow for faster, more efficient delivery without the need for drivers.

“Automated vehicles are being equipped with cameras, sensors, and communication systems to enable the vehicle to generate large amounts of data that, when applied with AI, allow the vehicle to see, hear, think, and make decisions just like human drivers,” he wrote. Suhasini Gadam for Medium.

As the cost of manufacturing autonomous vehicles decreases, the benefits to the supply chain increase. From efficiency, lead time reduction and route optimization, PwCs New report Digitization and automation of processes and delivery vehicles will reduce logistics costs by 47 percent by 2030.

2) Efficiency of last mile delivery route

Road optimization software and AI-powered GPS devices are making their mark. And for good reason. Big names like Amazon have small businesses scrambling to track their effectiveness. In fact, he predicted that Amazon would be responsible 50% of total e-commerce The retail market in the US in 2021.

AI is helping small brands to compete with big corporations. Cost-effective technologies It ends with low overhead costs and high quality customer service. AI predicts delivery sizes, locations and patterns for better delivery routes, including road conditions and other factors.

3) demand forecast

Machine learning has the ability to quickly identify patterns in supply chain data, relying on algorithms to find the most influential factors. The ability of machines to discover data patterns without human intervention has applications in the supply chain.

In an interview with ForbesDr. Michael Feidt says:

“To help companies draw the right conclusions from the data they collect, businesses are applying ML and AI technology designed to understand the future impact of things happening everywhere today and to predict how demand and supply will look in the future. This means having algorithms that can evolve over time.”

AI makes it easier for brands to identify patterns in their supply chains and predict their business needs to make internal processes more efficient, eliminate costs and reduce lost inventory. The ultimate goal of AI is to predict production without overhead.

4) Chatbots for marketing and operational procurement

Chatbots are AI computer programs designed to conduct conversations by simulating how humans interact. The program communicates with customers in messaging apps such as Facebook Messenger.

Chatbots are relatively inexpensive, inherently low-maintenance, and incredibly user-friendly—for both buyers and suppliers who interact with them. While collecting user data useful for marketing and sales efforts, they help website visitors find the information they need quickly, all without taxing human resources. in fact, Chatbots life reports Businesses can save up to 30% on costs associated with servicing customer inquiries using a chatbot.

How will artificial intelligence affect the supply chain?