With unforeseen disruptions and ever-changing customer demands, companies must use Artificial Intelligence (AI) to ensure their supply chains remain agile and resilient. Over 64% of businesses believe they can increase their productivity by using AI, making it imperative for organizations to embrace this form of technology. 

AI technologies have numerous applications within supply chains, such as demand forecasting. By analyzing historical data, market trends and external factors, AI can predict demand patterns, allowing companies to optimize their inventory levels, reduce costs and improve customer satisfaction. AI can also provide important insights, enabling suppliers to make better decisions and anticipate potential disruptions. 

Intelligent automation is another crucial aspect of AI’s supply chain contribution. By automating repetitive and time-consuming tasks, AI streamlines operations, increases efficiency and reduces human error.  

Building Resilience with Supply Chain AI 

Supply chains must be prepared to adapt to supply-demand and transportation shocks. Even mundane factors, such as equipment outages, transportation issues and demand shifts, have a huge impact on performance. This type of complexity leaves little margin for error, and can lead to decisions that result in added costs, as well as prolonged external crises. 

Resilience is vital in today’s markets. Supply chain resilience refers to the ability to recover quickly and elegantly from challenges while being able to detect unanticipated changes without sacrificing quality.  

By using visibility data, AI can help companies achieve the resiliency they are hoping to establish. For instance, a pre-arrival quality control prediction signal can track the temperature-controlled shipments of produce, leading to proactive inventory forecasting. 

Unfortunately, more than 50% of companies lack end-to-end supply chain visibility. Supply chains require access to real-time data in order to track the movement of products and predict future needs. Improved visibility can even bolster employee safety through the identification of risk patterns that disrupt operations and potentially endanger human life. 

By utilizing machine learning algorithms and advanced analytics, companies can enhance their ability to respond to unforeseen events, minimize downtime and maintain consistent operations. 

Driving Agility and Adaptability with Supply Chain AI 

AI also helps supply chains quickly respond to changing customer demands, market fluctuations and new trends. AI-driven solutions can streamline inventory management operations, ensuring companies have the right number of specific products needed at precise times. This limits excess inventory or stockout risks while improving operational efficiency. 

Furthermore, AI plays a pivotal role in streamlining logistics and facilitating dynamic route planning. By considering various factors, such as dwell times, goods handling, traffic conditions, weather forecasts and real-time demand, AI can optimize transportation routes, performance, choice of waypoints, delivery times, product quality and sustainability, helping businesses adapt to market changes and move toward a more autonomous supply chain. 

Future Possibilities and Industry Impact 

AI is critical because it helps companies achieve supply chain resiliency in the global marketplace. Visibility is the bedrock for AI to provide great results. To achieve faithful visibility, the industry needs to focus on sensor-driven automated data collection. 

Sanjay Sharma is chief executive officer at Roambee.