Did you know that the Global Artificial Intelligence in the Logistics and Supply Chain Market Ecosystem was valued at USD 1.7 Billion in 2018 and is now expected to reach USD 12 Billion by 2027, growing at a CAGR of 24%? It’s true! AI is transforming global logistics and supply chain management.
A lot of startups worldwide have begun investing in AI in logistics and supply chain management in order to create a fleet of intelligent courier robots to reliably & securely transport goods and enable movable & inaccessible objects to communicate to revolutionize the industry.
As the complexity of global supply chains is increasing, the margin for error is rapidly shrinking. That, and an increase in competition makes it even more critical to maximize productivity by reducing uncertainties of any and all kinds. Mounting expectations of supersonic speed and efficiencies between suppliers and business partners of all types further underscores the need for the industry to leverage the skill of the Artificial Intelligence (AI) in supply chains and logistics.
AI no longer remains a buzzword or a futuristic technology that’s limited to the world of science fiction. Today, it’s evolving every sector that it’s touching, and logistics and supply chains are no different. It’s major benefit is its ability to rationalize and offer insights that improve the odds of achieving business goals. Let’s understand how.
● Effective Inventory Management with Predictive Analytics
An ineffective inventory management leads a brand towards unhappy customers, revenue loss, and bad production impacts. But if we had a solution to measure the frequently fluctuating demands, traditional operation methodologies, we could evaluate customer needs better and reduce unnecessary inventory. That’s where AI’s predictive analysis helps us.
● Stock Audits
A seamless stock audit is necessary to identify the discrepancy between your stock records. AI helps in stock auditing and simultaneously saves time by processing data faster and improved accuracy levels.
Interesting Read: Do We Need Traceability in Food Supply Chains?
AI offers real-time, data-driven insights that not only aim towards reducing costs, but also enhances service quality, and brings down the rate of failure. Some examples of the insights used by AI include graph-theory based predictions of optimal shipping routes, identification of traffic conditions, and predictions of possible peak hour delays. Such knowledge ensures cost-effectiveness.
● Supplier Relationships
AI carefully analyzes data sets generated from supplier assessments, audits, and credit scoring to allow companies to make well-informed decisions regarding supplier partnerships.
● Transparency and Communication
Al is a tool that helps in tracking the real-time status of all your orders. Aside from that, the AI-enabled chatbots have reduced customer response times to a minimum and decreased the need for logistics companies to hire customer support representatives. These chatbots can also be used to place purchasing requests, answer procurement-related questions, and communicate with suppliers regarding governance and compliance materials.
Recommended Read: Things to Keep in Mind for the Next Supply Chain Crisis