How AI is Revolutionizing Supply Chain and Logistics?
Artificial Intelligence is becoming highly explosive in terms of global supply chain and logistics. Many logistics officials feel that these areas are likely to experience a great transformation. It has the potential to disrupt the continuous development of advanced and digital technologies such as machine learning, artificial intelligence, natural language processing (NLP), etc. and promote advancements in these sectors.
Computers can deal with massive data at a time, it is difficult to take it physically in a single decision making procedure. Applying AI algorithms and utilizing various data sets, a machine will analyze unlimited prospects which lead to compelling planning. Artificial Intelligence reduces the human errors and helps in doing tedious tasks. So, with the assistance of AI, operational effectiveness can be boosted and expenses can be limited.
The growth of AI has fundamentally changed many sectors of the logistics and supply chain industry. Whether it is logistics management, consumer support, or inventory management, the contribution of the new era, Artificial Intelligence-based solutions are undeniable.
According to the reports of McKinsey, AI technology in supply chain management is expected to reach 3.3 trillion dollars in the coming next 20 years.
Click on the link to learn the Definition of Artificial Intelligence? And what are the Examples of AI?
In this blog, we will be discussing how Artificial Intelligence is impacting the supply chain and logistics industry.
So, without late, let’s look into the
Top 7 Ways AI is Revolutionizing Supply Chain and Logistics Management
Inventory Management
I think businesses cannot work properly without a well-maintained inventory. Both understocking and overstocking are really harmful. With a proper inventory management system, a company can focus on selling their products instead of managing its inventory.
A key requirement of AI technology in inventory management is the ability to assess demand, rather than the ability to ensure stock management. Algorithms can now study consumer demands across vast data and understand which materials will be in demand soon and which fail to generate enough sensation. This is called ‘demand estimation’ and is widely used in and businesses across the globe. So instead of depending on real time demand, a company can be ready in advance and stock up accordingly. It is undoubtedly the best revolutionary aspect of Artificial Intelligence in logistics.
Warehouse Management
As facial recognition is becoming popular in AI, machine can handle security. It can be easily secured by tracking the customers who enter and exit the unmanned warehouse. In addition, machines can track the items kept on the product shelves and the customers leaving the warehouse after reading product barcode and then updating the inventory accordingly.
Shipping Process Optimization
The effect of Artificial Intelligence does not diminish when the product is left out of the list. It is also used to estimate the best possible shipping route. Intelligent Machines utilize graph theory to evaluate the fastest and most cost-effective shipping routes for business.
AI software can also handle peak hours and traffic conditions. These are the significant factors that badly affect the shipping time of a company. By ignoring peak hours and scheduling delivery during light traffic, their delivery boys can spend less waiting time on roads and deliver the products to customers as soon as possible. Thus, the impact, and in turn, the benefits are increased.
Supplier Relationship Management
I would certainly say that supplier is one of the significant aspects of any logistics businesses. Finding the perfect supplier and creating a list of each item is tailored to those suppliers. According to the demand, when refilling recalibrating product, the engagement with one’s suppliers is a major factor that describes how smoothly the transaction runs.
Artificial Intelligence can manage various supplier parameters including delivery speed, cost, and credit score and prepare a list of best suitable options for any circumstances. It indirectly says that business process runs effectively and the supplier relationship with them is friendly and loyal.
Also Read about AI in Supply Chain: Uses Cases of AI in Supply Chain Management
Transportation Management
It is common for many enterprises to contract with shipping firms to deliver their products. Some of the largest companies, like Alibaba, Amazon, and Flipkart have their own shipping department. As discussed earlier, Artificial Intelligence makes the whole experience very smooth when it comes to efficiency and time management for goods shipping.
Whenever drivers are in delivery vehicles, they have only limited time to reach the destination. Hiring multiple drivers for the same vehicle to cater the requirement for a 24*7*365 delivery system can be costly. In logistics, AI going to prove as a lifesaver soon by automating the entire driving function. You know? Amazon has shown confidence recently in automated delivery trucks.
Foreign Language Decoder
Every country in the world has its own national language. As business is happening from around the globe, you should cater to a global audience. But, miss communication due to different languages is a major problem. Along with the miss-conversation between customers and business, understanding other countries market trends and goods can be a big problem.
Don’t worry! This barrier will not exist longer with AI technology. In addition, AI-powered chatbots and customer support systems are also very good at managing foreign consumers without the hassle of hiring many offshore support executives. All over, Artificial Intelligence makes the employment easier.
Reduced Customer Response Time
Ultimately, businesses are leveraging AI solutions to provide excellent customers support. Using AI Chatbots, businesses can reduce consumer response time and also decreased the need for customer service executives.
In addition to being polite and practical, chatbots are also beneficial when dealing with foreign customers who do not speak the languages supported by the business locally. AI technology ensures very efficient and fast customer service.
Final Verdict
AI technology will continue the fantastic journey of digitization development and will definitely become a significant part of everyday business. In industries such as supply chain and logistics, Obtaining Artificial Intelligence from expertise in fields such as supply chain and logistics is a useful tool to find out critical issues. AI plays a vital role in paving the way for proactive, predictive and personalized opportunities for supply chain and logistics.
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