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How Artificial Intelligence is Disrupting Supply Chain market?

Artificial Intelligence is expanding its service across every domain. AI offers speed in decision-making, reduces cycle time, accelerates operations and continuously learning cycle. According to a report published by Gartner, supply chain organizations expect machine automation to double by the next five years. No doubt, Artificial Intelligence will take over the manual process leading to heavy scale automation in supply chain operations.

The global supply chain complexity is increasing every year, the cost of maintaining manual operation isn’t feasible in long run. Also, with the increasing competition in the digital space, organizations will be forced to procure Artificial Intelligence-based software to enhance productivity.

AI Intelligence Eradicating Inefficiencies and Irregularities

Businesses involving large scale transportation and logistics service need to remove irregularities to accelerate their businesses for the long run. Performance should be the highest priority to stay ahead in the competitive market. AI intelligence system positively impacts the working conditions of the employees by increasing work efficiencies. According to reports, 25% of the total working population will directly get impacted in the next three years. Job insecurity will force employees to work dexterously and creatively.

Facilitate Accurate Inventory Management

Inventory is a vital part of business operations. AI-based smart applications such as; automated vehicles, drones and robots have drastically changed the inventory management system to maximize profits. AI makes demand forecasting easier as it takes real-time data such as demographics, weather, online reviews etc. The customer support facility has improved drastically with the introduction of AI-enabled chatbots and Machine Learning tools. Artificial Intelligence-based marketing tools can run in-depth marketing strategies based on selective sets points in the customer database system, which in return maximize sales for an organisation.

Reduces Operations Cost

Artificial Intelligence and Machine Learning reduce the cost of the operations of an organization e.g. With the help of machine learning, Netflix managed to save USD 1 billion in 2017. As per data, when an organization is using AI, 34% of the total customer spend more money on the products and services. Apart from this, 49% are thinking about buying something from the company more often in case the organisation uses AI-based applications. This return, help the organisation to reduce, resulting in reduced operations cost.

On-time Delivery, Minimizes Defaulting

Popular e-commerce platform such as Amazon, Walmart, Flipkart, eBay etc. is using Artificial Intelligence-enabled logistics technology. Use of such technology enables fast and on-time delivery of products and services. The core of the supply chain mechanism is customer-centric, all the resources and cost of operations bore by the organizations it to customer satisfaction. Big Data crunching has fastened the delivery process many times. Today, the timely delivery of product and services is possible only because of AI and Machine Learning. The intelligence system accelerates the traditional warehouse procedures and thus removing the operational bottleneck.

According to PwCArtificial Intelligence applications have the power to transform the way business is done and contribute up to $15.7 trillion to the global economy by 2030. Today, AI-enabled software are much more agile, accurate and customer-centric, which is a much-needed process to disrupt the traditional way of supply chain mechanism.

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Aman Yadav

I describe myself a devilish curious breed, avid learner, fond of expeditions, relish bowling and part-time movie buff. Flairexperience in content development domain. I'm a small cog in the digitally transforming world.View Author posts