Why we should embrace AI in Supply Chain Planning

How to Apply AI in Supply Chain to Drive Better Results

ai for supply chain optimization

Empower your business to increase customer satisfaction by reducing manufacturing disruptions resulting from supplier delivery and quality issues. Manufacturers continue to face growing demands to deliver quality goods while decreasing costs. Organizations that leverage machine learning and AI to improve their processes see increases in efficiency, customer satisfaction, and operational uptime. Strong’s platforms and solutions enable manufacturers to rapidly build and integrate AI products and become industry leaders. While the company was growing, it accumulated supply chain data stored across disparate ERP systems. C3 AI targeted the visibility challenges of the company and unified the data on the C3 AI Supply Chain Digital Twin.

  • It can also facilitate the generation of design alternatives, allowing for rapid prototyping and iteration.
  • NHS Blood & Transplant are working with a company called Kortical to design an AI-powered supply and demand model for every hospital in England.
  • C3 AI targeted the visibility challenges of the company and unified the data on the C3 AI Supply Chain Digital Twin.
  • The widespread adoption of AI in supply chain systems could result in the displacement of workers in certain roles, particularly in areas such as warehouse operations and transportation.

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Inventory Management with AI

Within three months, Walgreens migrated its entire on-premises data to the cloud with Azure ExpressRoute and Azure Blob Storage. Users can now consume valuable data and insights through a web app developed in-house and data visualization tools like Power BI. In the 2019 Hype Cycle, Gartner highlighted that applied ML and AI is still very much on an upward trajectory in terms of its market and application maturity, however, many businesses are still yet to plug into ai for supply chain optimization these opportunities. After a period of time cobots learn to recognise obstructions of different types, in different scenarios and ‘learn’ independently how to navigate them safely. It can also deliver deep analysis down to the SKU level, not practical with a manual, human-led approach. Secondly, unsupervised learning​ is used to look for groupings, patterns, or relationships within data, especially when we have little to no real idea of what we are looking for.

ai for supply chain optimization

In the realm of augmented reality, picture recognition may be used to give virtual try-on services for apparel or property tours. The term “risk management” is used to describe the procedure of analyzing the threats facing a company and then taking the necessary measures to lessen or eliminate them. Artificial intelligence (AI) may help by identifying and evaluating hazards automatically and generating insights that can be utilized to guide risk management choices. Artificial intelligence (AI) may also be used to examine consumer data in search of trends that can be utilized to enhance the service provided to each individual client. Businesses may use AI to better understand consumer sentiment by analyzing comments and social media interactions.

Emerging Innovations in AI-Driven Logistics

This article aims to delve into these challenges, exploring the shortcomings of traditional demand forecasting methods and setting the stage for a discussion on a more innovative, technology-driven approach. The focus will be on how artificial intelligence (AI) and machine learning https://www.metadialog.com/ can revolutionize this critical aspect of supply chain management. Furthermore, inventory management involves a large number of parameters that are not always easy to control. Additionally, AI-powered demand forecasting can reduce supply chain errors and minimize monetary losses.

  • AVEVA’s Schedule AI Assistant then recommends a scheduling strategy that best meets the organization’s safety, sustainability, and value chain optimization objectives.
  • We accept guest posts from reputable authors and companies who write unique, informative and relevant articles on Retail Strategy & Retail Blockchain technology.
  • These tools can be included in a company’s website or mobile app, or accessed via instant messaging services like Facebook Messenger or WhatsApp.
  • Cloud storage is unidirectionally connected to the serving data store and managed Hadoop; it is also bidirectionally connected to batch processing.

In one of the studies, we worked with a large FMCG corporation and were able to spot where inventory could be injected to provide a buffer against likely stock shortages. Data analytics can allow hidden patterns and trends in the data to be uncovered and acted upon, in order to improve supply chain operations. Traditionally in supply chains we’ve had enterprise resource planning (ERP) systems taking structured sources of data (which are mostly manually populated but also drawn from some automated processes). Once companies have digitalized their physical world and have real-time tracking of shipments in place, they can focus on how to take advantage of the benefits. Artificial intelligence (AI) or ML data, for example, can be leveraged to help optimize decision-making—potentially a key differentiator for a company in a competitive marketplace.

As AI takes over repetitive tasks, there will be a shift towards jobs that require creativity, critical thinking, and emotional intelligence, which are difficult for AI to replicate. Additionally, the development, deployment, and maintenance of AI systems will create new job opportunities in fields such as AI engineering, data science, and algorithm development. AI-driven analytics can be used to detect anomalies in data that could indicate a security breach or other malicious activity. AI can also be used to monitor the supply chain for potential threats, such as cyberattacks or natural disasters. To address these concerns, it is important for companies to consider the ethical implications of AI adoption in the supply chain.

How does DHL use AI?

Optimizing order fulfillment: DHL uses machine learning algorithms and predictive analytics to help e-retailers optimize route selection and staff allocation. Aligning workforce skills: DHL uses skills graphs enabled with natural language processing to match needed skills to people, learning content and job roles.

Overall, AI is transforming the way supply chain management is conducted, allowing for more efficient and sustainable practices. By leveraging AI, companies can reduce their carbon footprint, improve customer service, and ensure the sustainability of their supply chain. By analyzing data related to energy consumption, transportation emissions, and other factors, businesses can identify opportunities to reduce their environmental impact.

Lastly, AI can automate the processes of monitoring suppliers, which are increasingly intertwined and dependent on each other within a globalized supply chain. Data is the backbone of the modern supply chain, and artificial intelligence (AI) can help us to make sense of it. With AI, we can uncover hidden insights in data that would be impossible to find with manual methods. AI algorithms can detect patterns, correlations, and trends that would otherwise be invisible. AI can be used to automate tasks in the supply chain, and one of the most important ones is route optimization.

ai for supply chain optimization

Since it can gather and analyze information much faster than humans, it can handle large workloads. Since it can handle a significant amount of information simultaneously, it can quickly process product data and carry out relevant tasks. By incorporating intelligence, companies can personalise product selection for its customers. By using consumer data, machine learning algorithms can create food recommendations for each individual, tailored to their unique dietary preferences, allergies, and even health conditions.

Most companies are making the shift from remote monitoring to the optimization of controls and advanced autonomous systems of AI to boost functionality. Rather than replacing human workers, AI has the potential to augment their capabilities. By collaborating with AI-powered tools and systems, employees can leverage AI’s computational power and data analysis capabilities to enhance their own performance. This partnership between humans and AI can lead to higher productivity, improved problem-solving, and innovative solutions. The change is led by tech companies, which current business models are prepared to lead the innovation process in this area.

ai for supply chain optimization

Besides a journalist, he is also a thinker and proactive in digital transformation strategies. The world is becoming increasingly aware of the need for sustainability, and the supply chain is no exception. Artificial intelligence (AI) is transforming the way supply chain management is conducted, allowing for more efficient and sustainable practices. Retail Solutions are retail consultants that helps retailers to enhance their retail, digital, eCommerce & blockchain strategies. We focus on driving business growth and work collaboratively with clients to ensure performance improvements are delivered, developing and implementing strategies to achieve profitable growth. It offers a great way to proactively identify and mitigate potential threats before they become problems.

By embracing AI-driven decision-making, global supply chains can minimize risks, optimize resource allocation, and enhance operational efficiency. Predictive analytics will empower businesses to anticipate disruptions and proactively adjust strategies, ensuring continuous adaptability in a dynamic market landscape. ai for supply chain optimization By embracing 3D printing, global supply chains can optimize inventory management, reduce lead times, and create more agile and adaptive production workflows. By incorporating advanced robotics, global supply chains can optimize production processes, enhance quality control, and reduce labor-intensive tasks.

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AI-powered computer vision systems can be applied for inventorying or during shipping. Just like with other applicable areas, AI and ML can analyze massive assets of data and spot trends here. For instance, they can discover the most frequent quality issues that arise during particular steps of the supply chain or unveil issues that can cause trouble. But on the other hand… The zero-Covid policy in China, the Russo-Ukrainian War, sanctions on Russia, and the China-U.S. These are the major factors causing rerouting, delays, high transportation costs, labor and material shortages, and a long trade flow. While some job tasks may be automated, AI will also augment human capabilities, enhance decision-making, and create new opportunities.


While it may impact the nature of work, it also opens up new possibilities and demands a workforce that can adapt to the evolving technological landscape. The global supply chain is a complex and ever-evolving system that is essential to the success of businesses and economies around the world. As the world continues to face unprecedented challenges, such as the COVID-19 pandemic, it is becoming increasingly important to create a more resilient and sustainable supply chain. Artificial intelligence (AI) is emerging as a powerful tool to help achieve this goal. His Retail Blockchain experience is more recent and what started as a mild curiosity is now a passion.

ai for supply chain optimization

This technology can help identify potential suppliers, evaluate their suitability based on predefined criteria, and negotiate favourable terms. The global supply chain is in a constant state of evolution, seeking to attain optimal efficiency, cost reduction, and customer satisfaction. Yet, it encounters mounting complexities stemming from heightened customer expectations, volatile market dynamics, and an escalating demand for sustainable practices.

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It will also help to ensure a smooth, efficient supply chain that can adapt to changing market demands. AI’s ability to analyze complex real-time data sets extends to the warehouse and logistics sector. AI can evaluate factors such as product size, weight, and sales velocity to suggest optimal warehouse layout and bin placements to optimize warehouse storage.

AVEVA is a global leader in industrial software, sparking ingenuity to drive responsible use of the world’s resources. The company’s secure industrial cloud platform and applications enable businesses to harness the power of their information and improve collaboration with customers, suppliers and partners. She has worked in various areas, right from designing and executing sales & account management strategies to reengineering digital workplace solutions. With her determined focus on our mission and progressive approach, she has achieved customer delight in the space of AI, Knowledge Mining, Content & Collaboration, Virtual Assistants, RPA and more. Backed with a deep understanding of customer needs and technology, she heads Migration & Modernization business unit with an upshot of maximizing revenue while ensuring customer satisfaction. At Acuvate, we can build AI-enabled bots with our enterprise bot-building platform, BotCore, or Microsoft’s low-code platform Microsoft PowerApps, to drive better and more intelligent supply chain operations.

Which companies use AI in supply chain?

Logistics automation

Efficient logistics in a supply chain can also be achieved through AI & automation. Companies like Amazon, Tusimple, and Nuro are extensively investing in transport automation technologies such as autonomous trucks.