AI for Supply Chain Transformation
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The global AI in the supply chain market was worth around $1.6 Billion in 2021 and is estimated to grow to about $ 12.8 Billion by 2028, with a CAGR of approximately 41.5 % over the forecast period. The power of AI can be leveraged to meet the mounting expectations of supersonic speed and efficiencies between suppliers and business partners of all types.
How AI transforms supply chains and logistics
Studies suggest that AI and ML can deliver unparalleled value to supply chain and logistics operations. From cost savings through reduced operational redundancies and risk mitigation to enhanced supply chain forecasting and speedy deliveries through more optimized routes to improved customer service. According to McKinsey, 61% of manufacturing executives report decreased costs, and 53% report increased revenues due to introducing AI in the supply chain. Further, more than one-third suggested a total revenue increase of more than 5%. Some high-impact areas in supply chain management include planning and scheduling, forecasting, spend analytics, logistics network optimization, and more.
AI use cases in the supply chain industry
AI helps retailers, suppliers and distributors drive transformational changes that are needed today. AI delivers value to supply chain operations ranging from cost savings through reduced operational overhead and risk mitigation to enhanced supply chain forecasting, faster deliveries, and improved customer service. The most significant benefits of AI will be in providing supply chain professionals with more meaningful insights into how supply chain performance can be enhanced, forecasting anomalies in logistics costs and performance before they happen.
The future of AI in Supply Chain
The most promising use cases of AI in the supply chain industry
As the supply chain crisis continues to evolve, one thing is certain: transport and logistics companies will increasingly rely on AI and automation to create as much consistency and predictability for customers as possible. Data analytics and AI will help them deliver faster pricing quotes for customers and book transport more quickly, ultimately driving more business during these turbulent times. Companies that leverage AI to provide a personalized, consistent digital experience can capitalize on the volatility of these pandemic-driven markets and be well-positioned to weather the storm. Read full research to learn how AI will be transforming the supply chain industry.