The Implementation of AI in Supply Chain Management

Supply Chain Management (SCM) is a key component that determines operational smoothness and customer satisfaction. However, challenges in SCM often require innovative solutions.

What is Supply Chain Management?

Supply Chain Management (SCM) is an integrated system encompassing various functions within an organization, from production to product distribution to customers. SCM focuses on the flow of goods or services from suppliers, manufacturers, and retailers to consumers, operating as a transparent and efficient unit. In practice, SCM often faces several issues, such as a lack of supply chain visibility, inaccurate demand forecasting, inefficient inventory management, and delays in product delivery.

The Role of AI in Solving Supply Chain Management Issues

AI has emerged as an effective solution to the problems faced in SCM. According to a Gartner report, 70% of supply chain leaders plan to implement AI by 2025. This is due to AI’s ability to enhance supply chain visibility, optimize operations, and improve customer service.

• Enhancing Real-Time Visibility and Data Analysis
  AI can monitor and analyze data in real time. It can collect data from various sources within the supply chain and provide accurate and swift insights. For example, IoT (Internet of Things) sensors connected to AI systems can track the movement of goods worldwide directly. Data from these sensors is then analyzed by AI to provide a clear picture of inventory status, shipping, and potential bottlenecks.

  Amazon is one company that leverages AI to enhance its supply chain visibility. AI is used to predict product demand based on historical data, customer behavior, and market trends.

• Optimizing Inventory Management
  Efficient inventory management is crucial for the operational success of a company, especially in meeting customer demands without incurring additional costs from overstocking or stockouts. AI plays a significant role in optimizing inventory management by accurately predicting demand and adjusting stock accordingly.

  A real-world example can be seen with Walmart, which uses machine learning and natural language processing techniques to analyze historical sales data and customer reviews. This helps Walmart avoid overstocking or inventory shortages, reduce costs, and ensure product availability according to customer needs.

• Optimizing Shipping and Logistics
  Shipping and logistics are critical elements in the supply chain, where the effectiveness and efficiency of these processes greatly impact operational costs and customer satisfaction. AI has the ability to transform the way shipping and logistics are managed through deep data analysis and process automation.

  AI can analyze real-time traffic data and road conditions to determine the fastest and most cost-effective routes, helping to choose faster routes and avoid congestion or road closures, thereby minimizing delivery times.

The Impact of AI on Supply Chain Management

The application of AI in Supply Chain Management has brought significant changes, making supply chains more efficient, resilient, and responsive to changes. With the ability to predict demand, manage inventory, and optimize logistics, AI helps companies overcome various challenges in SCM.

By using AI in Supply Chain Management, businesses can ensure smoother operations and higher customer satisfaction. This also significantly impacts customer experience (CX) and overall business growth. When the supply chain is managed more efficiently, companies can ensure that products are available on time and in the best condition, enhancing customer trust and loyalty.

To create superior CX, it is important for businesses to learn and adopt AI technology in their supply chain management. By doing so, they can not only improve operational efficiency but also build better relationships with customers, ultimately supporting business growth and sustainability.

ABOUT MIMIN

Mimin is a platform that helps businesses to create conversational customer journeys with Artificial Intelligence. With Mimin, businesses can effortlessly build chat journeys and establish a positive customer experience.

The applications that can be generated include, amongst others, the ease of running chat commerce, chat campaigns, customer automation, omnichannel inbox, and Generative-AI chatbot.

With Mimin, businesses can deliver superior customer experiences, strengthen customer relationships, and build stronger customer loyalty.

Learn more about Mimin by contacting:

Mimin

PT. Admin Pintar Kita

Graha Charis Siem

Jl. Tanah Abang 5 No. 21, Central Jakarta

Phone: +62 856 0322 5212

Email: halo@mimin.io