Using AI and Data Analytics, organizations can hope to strengthen their supply chain operations that have been severely disrupted due to the pandemic and number of cyber-attacks.
The supply chain industry has been massively affected by the pandemic. Not only does it disrupt the business operations of the industry due to in-person restrictions to curb the virus, but it also exposes the vulnerabilities in the IT infrastructure that lead to high-profile cyber-attacks. Furthermore, attacks such as blockages of canals, congested ports, and natural disasters have surprised OEMs and suppliers across the globe. However, with the ease of restrictions and things becoming normal, supply chain organizations are beginning to invest heavily in technologies such as Artificial Intelligence (AI) and data in strengthening their supply chain operations.
As per a 2022 report from Statista Research Department, around 40 percent of all the respondents involved in the survey admitted that AI in the supply chain helps them enhance inventory management, smart manufacturing, and real-time delivery controls. Another 2021 study by Gartner, titled “Reinventing Supply Chain for the Future” revealed that 43 percent of organizations would continue to digitize and integrate innovative technologies into their infrastructure. Meaning, in 2022, the ability of the organization to effectively augment operations as well as decision-making with data analytics proves to be a transformative as well as highly-favored capability.
Here are a few ways that incorporating AI and Data Analytics will help to revamp the supply chain:
Provide a holistic view of the business operations
AI in the supply chain empowers organizations to collect relevant past and present data from various connected sources. This also includes implementing the SRM software, ERP systems, CRM systems as well as business intelligence solutions to the existing data. Using this approach, organizations can assess performance on a large scale. Moreover, supply chain data analysis predicts and minimizes risks and negative impacts on the distribution channels.
Simplify inventory management
Today’s data is dynamic and is only becoming more complex than ever before. For the supply chain industry, where the data is already complex, the evolution in it can further worsen their issues. However, organizations can seamlessly address this situation using AI and data analytics.
It can help them to invest only the minimum amount of required resources while holding and carrying costs. Since AI systems can hold and process a significant amount of data efficiently and accurately, their use can help organizations drastically reduce inventory-associated costs.
Decrease delivery time and increase reliability
As per industry experts, distributed organizations utilizing AI to optimize their delivery processes can significantly enhance their efficiency. Since AI can seamlessly integrate with technologies such as GPS and telemetry, this combination can enable organizations to dramatically decrease their delivery time while increasing efficiencies across the supply chain.
Provide competitive edge
To stay ahead of the competition in the supply chain industry, it is critical that organizations can observe the market trends and patterns. With AI and data analytics, organizations can tap real-time data from external sources such as industrial production, weather, and employment history. With all the amassed data, organizations can better gauge the market conditions and assess their upcoming demands for stable growth.