Impact of Industrial Automation Supply Chain Transformation and Digitization Sustainability in automated supply chains

How AI-based production schedules can easily adjust to changes in demand to increase throughput

ai for supply chain optimization

Practitioners in apparel manufacturing and retailing enterprises in the fashion industry, ranging from senior to front line management, constantly face complex and critical decisions. There has been growing interest in the use of artificial intelligence (AI) techniques to enhance this process, and a number of AI techniques have already been successfully applied to apparel production and retailing. Acuvate Software is a global player in next-generation digital services and consulting with 14+ years of experience optimizing the supply chain and improving business efficiencies and revenue for numerous enterprises globally. As a Microsoft Gold Partner, we leverage all things Microsoft to build enterprise apps that support intelligent analysis, collaboration, and orchestration of information, to redefine sales, service, mobility, and experience. Walgreens is a 118-year-old drugstore chain with more than 9,200 stores serving markets in the United States, Puerto Rico, and the US Virgin Islands. The organization moved to Microsoft Azure Synapse Analytics in the cloud to modernize businesses, study historical data, manage inventory, and provide customers with the products they want at the right time.

ai for supply chain optimization

This method will reduce the amount of manual labor necessary while still providing that personalized experience. In May 2023, the retail chain Niemann Foods introduced an AI inventory management system in 43 of its stores to connect stock with predicted consumer purchasing behavior. Since it can forecast trends and account for product-level changes, it can maintain optimal amounts. As we’ve navigated through the transformative power of artificial intelligence in inventory management, it’s clear that we’re standing on the cusp of a new era. The integration of AI is not just an optional upgrade; it’s swiftly becoming an industry standard that can significantly streamline inventory management, enhance operational efficiency, and catalyze business growth. Furthermore, AI’s real-time tracking capabilities can identify slow-moving items, alert you to potential stockouts, and even recommend necessary adjustments to your stock levels.


It can help optimize logistics, facilitate quality control, and boost the sustainability of the supply chain. Artificial intelligence is essential for quality prediction, planning, risk evaluation and management, as well as supply chain automation. On top of that, AI provides a quick analysis, rapid assessment process, and rational mitigation strategies. To mitigate the flood-related risks, an AI-based system might analyze weather patterns, the data collected by a supplier, and mass media data to estimate the severity of the impact. Then, the system will decide and provide a corresponding output explaining whether supply chain redesign is required for business continuity or not. Supply chain risk management (SRM) includes different strategies to identify and mitigate events and conditions that can negatively impact any aspect of the supply chain.

Additionally, there is an increasing need for AI specialists who can develop, implement, and maintain AI technologies within supply chain environments. Generative AI can also facilitate supply chain risk management ai for supply chain optimization by continuously monitoring supplier performance and identifying potential disruptions. This proactive approach allows supply chain managers to take preventive actions and maintain continuity in the supply chain.

Accelerating data science delivery in digital transformation, using AI Cloud

That is just a glimpse of how AI in supply chains, logistics, and workplaces, brings about significant disruptions, unlocking new efficiencies, optimizing processes, and reshaping traditional workflows. AI-driven analytics can be used to identify areas of waste and inefficiency, such as excess packaging or inefficient transportation routes. AI can also be used to monitor environmental conditions, such as air quality or water levels, to ensure that the supply chain is operating in a sustainable manner. AI-powered analytics can be used to identify areas of the supply chain that are not sustainable and suggest ways to improve them.

Tecsys Innovation Lab™ to Unlock Customer Value Through Emerging Supply Chain Technologies – Yahoo Finance

Tecsys Innovation Lab™ to Unlock Customer Value Through Emerging Supply Chain Technologies.

Posted: Mon, 18 Sep 2023 12:00:00 GMT [source]

To increase productivity and stabilize production flows, refineries attempt to enhance their planning and scheduling operations. Management teams can take responsibility and prepare for changing situations by optimizing schedules. A production scheduler coordinates the flow of crude oil through a refinery, from the point of unloading through transfer to storage tanks. They prepare charging schedules for distillation units, perform tank maintenance, and manage end-product delivery to maximize spot market profitability – all while taking into account unit capacity, flow, and compositions. The multi-step procedure and multiple variables can lead to mistakes, making overall optimization challenging.

In this new environment, consumer behavior is rapidly shifting, supply chains are under pressure, and retailers need to quickly adapt and transform their business to respond to market demand and opportunity. While Linnworks itself does not employ artificial intelligence, its advanced features and capabilities are remarkably powerful. Retailers and e-commerce businesses seeking to enhance their efficiency can greatly benefit from Linnworks’ comprehensive inventory management system, which is ingeniously designed to be both intuitive and potent.

  • This helps prevent overstocking or understocking, resulting in more efficient operations and improved accuracy.
  • The eco-responsibility of products requires the ability to provide flawless traceability of the components used in their manufacturing.
  • Using AI to automate repetitive tasks such as customer service, data entry, and inventory management.
  • This tool can analyze millions of documents and reveal relationships among organizations, companies, products, and people.
  • Organizations can collaborate with their suppliers through customized and contextualized responses to fulfill high-priority customer orders via alternate distribution centers, which ultimately streamline operations and save time.

According to a recent global study from McKinsey, adding AI to supply chains is already delivering tangible benefits for companies putting it in place. Deloitte commissioned an online survey with 182 supply chain leaders operating across trucking, ocean, rail, manufacturing, and retail in early 2020. We supplemented this research with conversations with supply chain and industry leaders operating across multiple segments of the transportation value chain. Accenture discovered that 3/4 of chief supply chain officers want to rework their supply chains to make them more resilient.

Customer feedback automation with Natural Language Processing (NLP)

Blockchain can be used to create a secure and transparent record of all supply chain transactions, from raw material sourcing to final delivery. This can increase transparency and trust between supply chain partners and reduce the risk of fraud or counterfeiting. AI-based systems can also be used to monitor equipment and machinery in real-time, detecting issues before they become critical. By predicting maintenance needs, businesses can reduce downtime and ensure maximum uptime, improving productivity and efficiency.

ai for supply chain optimization

As a result of this unique insight, retailers stay informed and can keep stock at appropriate levels. Although people can technically make similar projections, analyzing enough data to reach a similarly accurate conclusion would likely take them much longer. Retailers can merge in-store inventory models with AI management tools to overhaul their current systems. They can get enough products in to give customers AI-backed style recommendations for a more personalized shopping experience.

How does DHL use AI?

Optimizing order fulfillment: DHL uses machine learning algorithms and predictive analytics to help e-retailers optimize route selection and staff allocation. Aligning workforce skills: DHL uses skills graphs enabled with natural language processing to match needed skills to people, learning content and job roles.