Supply chain has been on a journey to evolve, continually accelerating its pace in the last ten years. Companies that invested in supply chain technology and digitization have seen significant improvements in their operations and productivity. Supply chain modernization can lead to higher profits, improved customer satisfaction, and lower costs. The value of having an effective supply chain organization is undeniable, reflected on many levels, and impacting expenditure, improving decision-making, and customer value. That’s why companies must strive for successful supply chain integration.
Supply chain organizations have found a better and more direct path to achieving their goals with Artificial Intelligence, Blockchain, and IoT technologies. Combining these three technologies improves productivity, security, and operational optimization, providing a way to ensure long-term demand and advanced planning.
What does Artificial Intelligence (AI) mean in supply chain?
AI enhances global supply chain management, providing multiple benefits for companies. It aids in the decision-making processes, enables process automation, and allows for implementing a strategy that includes advanced planning, allowing the capabilities to manage incremental levers to improve accuracy. AI can significantly improve warehousing operations by optimizing picking routes or defining ideal storing locations for fast-mover products to reduce pick/pack/ship cycle times.
Implementing intelligent tools such as Robotic Process Automation (RPA), a software technology that automates digital tasks, also significantly impacts productivity and reliability. RPA uses “bots” that learn and emulate business processes by observing human digital actions and taking over the duties. They interact with the applications and systems as people do, with the noteworthy difference that they do it quicker, with no errors.
Additionally, dynamic reporting is made more accessible by applying AI. Real-time dynamic reporting can be viewed anywhere and on any device, providing dynamic information with real-time interactions. With this type of reporting, powered by AI, businesses can keep up with dynamic pricing, also known as real-time pricing. This flexible approach allows companies to adjust prices instantly according to market demands.
AI can also facilitate product assortment planning and optimization. This process involves retailers defining what product categories and styles to stock and in what quantities. The objective is to optimize product selection and increase sales. However, it involves several planning efforts, from budget and store size to supply chain realities like manufacturing capabilities and vendor relationships.
When supply chain organizations use AI, the opportunities to enhance data collection, processing, and reliability are endless. Still, clear business processes, data requirements, and triggering events and criteria are critical to enabling organizations to capture the value of artificial intelligence. At Globant, we make sure we understand your goals and focus on adding value to your resources by customizing services using technological solutions. We specialize in identifying areas for improvement and enhancement.
Learn more on how our Business Hacking Studio and AI studio concentrates on identifying business and operational opportunities for our clients, applying and providing the most up-to-date best practices.