AI is transforming supply chains: enhancing efficiency, demand forecasting, delivery optimisation through advanced technologies.
Supply chain issues continue to challenge industries worldwide.
AI is increasingly seen as a solution to enhance efficiency and resilience within this sector.
To understand its impact, Jyot Singh, CEO of RTS Labs, joined to share his insights.
By utilising historical data, algorithms can predict future demand, facilitating better inventory management.
Additionally, advances in generative AI further enhance these forecasts by incorporating sentiment analysis and other factors.
AI also optimises delivery routes by analysing real-time data on traffic and weather conditions, thus reducing costs.
Companies, such as UPS, utilise technologies to streamline last-mile delivery, which is the most expensive portion of the supply chain.
AI’s role extends to improving vendor management and procurement efficiency through smart contracts and data-driven decision-making.
This helps businesses assess vendor reliability and make informed choices about allocating resources effectively.
Moreover, the digital twin technology allows businesses to simulate their supply chains virtually, testing various scenarios to identify potential disruptions.
American technological research and consulting firm Gartner predicts that by 2026, 60% of global supply chains will adopt digital twin applications, enhancing their ability to manage complex logistics.
