Notable Development Areas of AI in Supply Chain Management

Logistics Tech Outlook | Friday, July 09, 2021

Organizations have realized that AI can solve the issues of running a global logistics network, so AI is being used in the supply chain and logistics business. AI enables firms to be smarter, make more agile decisions, and foresee problems when deployed correctly.

FREMONT, CA: Artificial Intelligence (AI) is already extremely powerful, and it is just getting stronger. Everything from social media to self-driving automobiles is increasingly determined by how quickly machines can be trained to mimic human behavior or even outperform humans.

Enterprise applications based on sophisticated technologies such as Machine Learning (ML) and AI are beginning to generate unique and new business strategies, although still being in the early stages of development. These technologies are proving to be game-changers in the logistics and supply chain industries. Supply chain businesses expect machine automation's utility to quadruple in the next five years. Organizations have realized that AI can solve the issues of running a global logistics network, so AI is being used in the supply chain and logistics business. AI enables firms to be smarter, make more agile decisions, and foresee problems when deployed correctly.

AI is expected to have a notable impact on the following areas:

  • Predictive capabilities aid in demand forecasting, which AI promises to have a significant impact on. Organizations must suffer losses when inventory falls behind demand. AI is becoming more efficient in terms of forecasting demand and network design, allowing merchandisers to be more proactive. They can regulate the number of vehicles and move them to areas where more demand is expected once they know what to expect. As a result, operational costs are reduced.
  • Chatbots have revolutionized the customer support industry. According to a study, bots can handle 80 percent of all consumer contacts. The relationship between logistics suppliers and clients can be customized using AI.
  • Smart warehouses are more capable. A smart warehouse is a fully automated facility that performs most of its tasks using software or automation. Difficult tasks are simplified, and processes become more cost-effective.
  • Automation has already been used by e-commerce giants to change their warehouses. They have released devices that automate the process of boxing consumer orders. Robots and humans collaborate at warehouses to improve efficiency and production.

AI is poised to set a new bar for efficiency in logistics and supply chain procedures in the not-too-distant future. The game is rapidly evolving, resulting in a ‘new normal’ in how global logistics organizations handle data, serve clients, and conduct operations in a more intelligent, automated, and efficient manner.

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