AI is driving a new revolution across a number of industries and the supply chain is no exception. AI has been the most transformative technology of the decade, and it’s no secret it has helped supply chains become more efficient, resilient, and responsive, while allowing organisations to become more efficient and ensuring workforces to focus on more strategic growth.
However despite the benefits of the technology, many businesses are slow to adopt the technology, with recent statistics showing only one in ten of SME’s regularly use AI technology, indicating companies and employees are still not operating at their full potential, thus missing out on opportunities for growth and optimisation.
Transforming the supply chain through AI
The potential that AI has in the supply chain is undeniable, with some estimating that AI helps businesses reduce logistics costs by 15%, reduce inventory levels by 35% and raise service levels by 65%. In contrast, failure to implement AI tools could set companies back, leave employees feeling unmotivated and unproductive and result in a weak supply chain and poor staff retention.
Now, more than ever, it’s time for businesses to not just pay lip service to AI – they must start using it within their supply chains to truly enhance operations. Due to the evolving market dynamics, AI is not just a competitive advantage; it’s essential for business agility and profitability. Here are two ways in which organisations can use AI to improve their supply chains.
Automating the supply chain & harnessing the power of AI for resilience
AI allows businesses to tackle supply chain challenges head-on by automating time-consuming manual processes, such as data-logging whilst reducing errors. By taking over repetitive and potentially hazardous tasks, AI frees up employees to focus on strategic initiatives that drive business value. For example, a recent report highlighted that nearly three quarters of warehouse staff surveyed are excited about the possibilities of generative AI and robotics improving their job roles.
Needless to say, a supply chain still can’t operate at its peak without resilience – which is the capacity of a supply chain to withstand and recover from disruptions – ensuring uninterrupted operations and minimal impact to businesses and customers.
As global markets continue to evolve & expand, businesses are challenged to adapt swiftly to unforeseen disruptions. AI enables businesses to provide real time data analysis, providing unprecedented insights into the web of supply chain dynamics and acting as the eyes and ears of a supply chain. This empowers each component with the ability to make informed decisions quickly to meet supply chain demands. Allowing insights into every aspect of their warehouse operations, real time data enables visibility which permits precise monitoring, enhanced customer service and reduced downtime – identifying potential issues before they become a major problem.
At the heart of the supply chain is communication between all stakeholders, with technology such as AI providing real time data, seamless collaboration is enabled by providing a shared platform where suppliers, manufacturers, and distributors can exchange information instantaneously. Enhanced communication leads to quicker issue resolution, enabling the supply chain to adapt rapidly to changing circumstances. Robotics, AI and real-time data introduce an all-encompassing visibility of the good’s journey, which leads to resilience.
Human expertise with robot precision
Building on the theme of resilience, in the next couple of years the industry will witness AI-integrated robots becoming collaborative partners to their human co-workers. Particularly in environments requiring vast coverage and extensive data capture, robots that are equipped with groundbreaking sensor technologies will navigate, adapt and work with greater levels of autonomy along with other machinery and people in busy environments. This will result in speed of data acquisition and most importantly, allowing companies to make decisions based on actionable insights a lot faster than ever before.
These advancements will transform robots into true cobots and will take human-robot teamwork to an unprecedented level. We will also see that robots will become better with understanding nuanced human gestures and intentions. This evolution in collaboration with technology will redefine what humans and machines can accomplish together.
What’s next for the industry?
In theory implementing AI and advanced technology in the supply chain has the potential to bring significant benefits. However, we will only begin to see substantial results once these innovations are widely adopted in practice. By automating the supply chain and using data to fuel predictions, these technologies are the foundations for a new industrial revolution that will shape the future of the industries for years to come. Those that delay starting their journeys will risk being left behind.
Photo by Miltiadis Fragkidis on Unsplash
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