Both AI and ML technologies have started touching all spheres of our lives. Talking about the industrial sectors, logistics, manufacturing, and all core industries tend to leverage the benefits of AI for managing supply chains and streamlining the movement of goods. With the integration of AI in supply chain management, it is possible to optimize key processes and avoid mistakes caused by humans.
Artificial intelligence enables machines, systems, and software to emulate specific types of human behavior. This technology uses human reasoning for decision-making while providing accurate insights, products, and services. Considering the supply chain management domain, AI brings several applications including extraction of information and analysis, demand and supply planning, warehouse management, and controlling autonomous vehicles.
Innovative concepts including predictive analysis and natural language processing (NLP) can assist companies in streamlining supply and inventory management processes. It is possible to predict demand even before products are required by customers thanks to predictive analysis. NLP can extract insight while parsing human language. Here is how AI can manage goods’ movement efficiently.
Challenges
The traditional FMCG supply chain faces multiple challenges in terms of the rise in online sales and digital-only challengers. Direct-to-consumer suppliers also pose a difficulty in streamlining supply chain. Businesses remain under tremendous pressure to maintain a subtle balance between increased sustainability and higher profitability. Also, during the movement of goods, there is an increasing risk of wastage and their impact on the environment.
Strategy
AI can give answers to challenges related to supply chain and movement of goods. It can give insights from the data collected and drive efficiencies across the supply chain. AI can also help businesses in all sectors optimize logistic-related processes. By adding a layer of intelligence to warehouse operations, businesses can maximize fulfillment without increasing spending. AI-powered supply chain solutions can also assist companies in warehouse and inventory management.
Outcome
Consumer goods businesses can remain more sustainable and environment-friendly. Supply chain management companies can accurately forecast demand and plan accordingly over the period.