How Artificial Intelligence is Shaping the Future of the Supply Chain Industry

Gone are the days when customers were willing to wait for days to get their parcel received. Today is an era of gratification where each transaction, delivery, and purchase comes with time sensitivity. Same-day, next-day, or hour deliveries are now possible and have shaped new norms for the supply chain industry. 

In today’s modern world, product development is shorter, global trade is freely exercised, and customer expectations are increasing daily. Moreover, uncertain times such as the pandemic and other growing competition across the supply chain industry have enabled businesses in doing & adopting the best to grow and survive. 

The modernity in the supply chain comes with multiple complexities and pressure on businesses to maintain customer relations, provide fast deliveries, build long-term planning for uncertainty or unforeseen events and stay profitable.

The pandemic has left some serious issues and loopholes in this industry and given a wake-up call to the businesses out there to adopt a more rigid, proactive, and flexible business process to prevent the risks involved in the supply chain.

Since more & more businesses are understanding the importance of automation, digitization, and streamlining their businesses, the rapid growth of AI in the supply chain is visible. Around 63% of businesses have reportedly shown a tremendous increase in their revenue by incorporating AI into their business. Here, we provide you with some ways of AI that help optimize the supply chain and build a strong business. 

Automating Inventory and Warehousing Processes

Managing inventory and warehousing is one of the core applications of the supply chain industry. It is directly associated with the overall operation. Artificial intelligence can help by accurately ascertaining the demand trends and solving the problem of overstocking, understocking, etc.

AI is commonly used today in warehousing management as it automates manual work, optimize shelf space, sort & ship merchandise, reduce paperwork, predict likely issues, maintain reports, etc. 

Minimize Human Dependency 

From the initial phase till the execution and decision-making, the supply chain process was traditionally dependent on human intelligence, productivity, and judgment. Manual operations are likely to be impacted by multiple factors and thus result in a lack of accuracy & efficiency.

Thus, the implementation of AI in the supply chain can eliminate such issues and can reduce the manual work, repetitive tasks, and processes involved in supply chain functions. It helps in making entire logistics better, more reliable, faster, and more productive. 

Smart Resource Management

In supply chain management, whether it’s a staff or fleet vehicle, the dependency on human judgment might not be the best option. Artificial intelligence helps in managing the delivery of resources in the most efficient manner, enhances resource utilization, and reduces costs significantly.

Moreover, it helps in the management of tools that allow us to identify the right fleet for the shipment and which objects can be clubbed together for seamless transportation. Smart allocation of resources is possible using AI thereby improving productivity and employee satisfaction.

upgradation of Artificial Intelligence in the Supply Chain Industry

The current state of AI in the supply chain industry is far from perfect. There are several issues that need to be addressed in order for the technology to become more efficient and effective. One major issue is that AI is not yet widely used within the supply chain. This leaves companies with a lot of room for improvement when it comes to their overall management of the process.

Final Thoughts

Artificial intelligence has offered endless possibilities and opportunities to the global supply chain industry. It has allowed us to grow to higher levels and view the path to keep going forward in the right direction to keep the customer satisfied, remain in the competitive market, and grow amidst uncertainty.