F or small to mid-sized businesses and global corporations alike, arti cial intelligence (AI) has far-ranging supply chain applications. AI-enabled solutions can ingest vast reserves of supply chain data, spot pat- terns, and generate human-sounding advice. And they can learn on the job— integrating with other technologies to sharpen their capabilities over time. Here is a snapshot of how AI is cur- rently being developed in supply chains:
data and generate predictions based on this information. For example, freight technology pro- vider Loadsmart embedded a generative AI tool in its freight management plat- form ShipperGuide. Called CoPilot, the enhancement allows companies to gen- erate reports, maps, and charts based on their shipping data. Shippers interact with the platform by stating questions. One shipper reporting bene ts from AI is American Tire Distributors (ATD), which supplies tires, wheels, and tools to the automotive market. The company deployed ToolsGroup Service Optimizer 99+ (SO99+), which has an AI-powered probabilistic forecasting engine, to gain insights into demand behavior. The forecasting engine let ATD move from xed forecast intervals to dynamic planning. The solution increases fore- cast collaboration with its suppliers and end retailers so the ATD team can make more demand-responsive decisions.
IDENTIFYING SHIPMENT DELAYS. Generative arti cial intel- ligence can make it easier
for companies to keep tabs on their ship- ments and stay on top of potential delays. For instance, shippers can track cargo from container loading to store door delivery with Maersk’s AI-enabled reefer visibility assistant Captain Peter, which works with its remote container manage- ment system. Additionally, project44, a supply chain visibility platform, is using its data- set gathered from tracking 1 billion shipments representing $1 trillion in cus- tomer inventory to enable Movement GPT, its new AI within its Movement platform, to respond to shipper queries. Shippers can ask Movement GPT: “Which of my shipments are impacted by weather in northern Europe?” and “Do I have more reliable routing options for my next shipment?”
ENABLING SUPPLY CHAIN VISIBILITY. AI can work with Internet- of-Things (IoT) sensor
inputs to provide visibility into sup- ply chains. For example, Roambee’s AI-powered platform combines real- time IoT sensor information with data streams from carriers, ports, airport oper- ations, rail lines, traf c reports, and weather forecasts. The platform then transforms this data into predictive and contextual business signals, insights, and forecasts, such as replenishment triggers and quality com- pliance predictions. SOURCING MATERIALS FOR MANUFACTURING. Companies can source parts faster at a com- petitive price with AI-powered supply management platforms, such as LevaData, which helps compa- nies including Bose make data-based decisions about their direct materi- als sourcing. LevaData provides manufacturer lead times in several commodity areas, letting companies identify alternative suppliers to ensure supply continuity. Via its dash- board, it breaks down spend data and provides recommendations so supply chain teams can detect patterns and sav- ings opportunities.
MANAGING INVENTORY. The demand forecast- ing capabilities of AI come in handy for opti-
PREDICTING PRODUCTION BOTTLENECKS AND DISRUPTIONS.
mizing inventory turns and reducing stockouts, enabling retailers and manu- facturers to understand the seasonality of stock-keeping units. For instance, Gaviota, an automated sun protection and shutter maker, deployed the SO99+ solution from ToolsGroup and achieved a 43% reduc- tion in stock levels, slashing inventory from 61 to 35 days. The SO99+ software de ned the optimal mix of inventory across the manufacturer’s supply chain to achieve service level targets. Gather AI is another AI-powered inventory management solution. It deploys drones that y through ware- houses to photograph inventory stored in pallet locations. The AI reads barcodes, text, and other information in the images and auto- matically compares it with what’s in the warehouse management system (WMS), providing warehouse managers with real- time inventory data via a dashboard.
AI can predict raw material shortages years in advance. “AI can help compa- nies prevent production bottlenecks by monitoring current and future availabil- ity levels of raw materials based on news, weather, and other available data,” says Jason Hehman, client partner at TXI, a provider of digital products. “For example, say there’s a historic drought in the Southeastern United States. That won’t impact the timber supply for two or three years, but AI could leverage rainfall data to ag that crimp in advance,” he notes. In short, AI-enabled tools can provide a roadmap to navigate uncertainty. “By agging product movement trends, creating heatmaps, and monitoring for broader supply chain disruptions, the AI can serve as a personal copilot and make users more effective in their jobs,” says Mike Sigler, senior director of customer success at the Nexer Group, an information technology services consultancy.
DEMAND FORECASTING AND PLANNING.
AI can power forecast- ing engines thanks to its ability to process massive amounts of
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