In Unpacked, CGT's new series of Tech Explainers, we break down AI in the supply chain, including its benefits and drawbacks, and where today's leading experts see the future potential.
Artificial intelligence can impact every link in the supply chain thanks to its ability to optimize data collection to increase visibility into operations, quicken decision making to proactively identify risks, and provide recommendations to head off challenges and seize new opportunities.
For companies that are able to invest and position their business to unlock the potential of AI in the supply chain, the technology can provide a distinct competitive advantage.
It’s not enough to simply invest in new technology and expect automation to take the reins. The successful future of AI in the supply chain depends upon forward-thinking, well-trained and well-supported IT teams.
Thanks to its ability to gather gigantic, disparate data sets, and then swiftly analyze the information to provide insights, the role of artificial intelligence in logistics is a valuable one as it helps consumer goods leaders make decisions more quickly, accurately, and efficiently.
Shifting consumer demands, geopolitical uncertainty, labor constraints, and residual pandemic-era behaviors can all have a negative impact on supply chain management. As a result, more companies are leveraging AI in the supply chain to improve their supply chain resilience.
While maturity levels vary for artificial intelligence in logistics and the supply chain, it has the potential to facilitate more accurate and efficient decision-making.
Thanks to the versatility of its benefits — what business function wouldn’t want to have their mountains of data quickly analyzed? — AI can be applied to supply chain activities in numerous ways, and the future of AI in the supply chain is promising.
AI in the supply chain has many applications, not least of which includes logistics. While historically logistics teams may have operated in siloes and relied on manual, labor-intensive processes, they are now leaning into AI-powered tech to gain greater visibility into their operations.
Artificial intelligence can be used to quickly gather and analyze massive amounts of data flowing from a large number of sources. As a result, AI in the supply chain is a prime candidate for the tech investments that can move the needle in improving business performance.
