Smart business executives are already exploring generative AI applications. Generative AI can analyze data and create content in various formats, benefiting internal company operations such as customer support, marketing, and HR. What about the supply chain? AI has long influenced supply chain activities, particularly demand forecasting and delivery optimization. How could generative AI contribute to this progress? Learn how this technology might improve supply chain operations.
Demand Forecasting and Risk Management
Generative AI can assess massive volumes of historical and real-time data and deliver conversational answers, simplifying planning. Instead of using a complicated analytical instrument, you can use conversational inquiries to forecast demand. Questions like “What are the biggest market trends that may impact our demand forecasting?” or “How can we plan for alternative suppliers in case of a major global disruption?” or “What are our biggest customer demand risks?”
Thus, generative AI simplifies demand forecasting technology. Remember that generative AI systems can recommend actions based on data.
Source and Manage Suppliers
Generative AI can analyze supplier capabilities, pricing, risk, and other aspects to improve supplier selection. Generative AI may also analyze supplier data and conversations to find insights and offer methods to strengthen relationships.
Automating vendor negotiations
Unexpectedly, generative AI can be used to negotiate vendor costs and agreements using a chatbot. One large US retailer that automated vendor negotiations discovered that it reduced expenses and negotiation time and that over 65% of vendors preferred the bot to a human.
If you’re apprehensive about outsourcing negotiations to a bot, generative AI can evaluate contracts, compare clauses, make recommendations, and discover contractual concerns.
Optimizing Logistics
AI has been used to optimize logistics for years, such as improving warehouse picking routes or designing the most effective driver delivery routes. However, generative AI adds a conversational interface to AI-driven logistics, allowing users to query the tool for recommendations. This allows for more real-time logistics customization.
Production Process Improvement
Of course, generative AI can boost manufacturing. Accelerating design with AI-enhanced tools and employing predictive maintenance to identify machines or production lines at risk of failure are two of the most significant examples.
But won’t this disrupt already-strained supply chains?
Over the past three years, supply networks have been under immense stress. It may seem like the worst time to introduce disruptive new technology, but it’s not. Because generative AI helps supply chain specialists adapt to rapid change, In summary, it transforms supply chains.
Supply chains have constantly evolved. Generative AI is the latest technology to develop and innovate, and it may be the most transformative. Strategic, purposeful transformation has always been the key to success for organizations. Everyone else risks falling behind.
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Source: Forbes