Today’s supply chains generate a wealth of data. In fact, the available data is often so great that many businesses struggle to extract all of the potential value from the data they have.
With so much data coming from so many sources, it would take analysts too much time to pull every insight possible from the data. Not only that, with the time it takes to process and analyze data, analysts are often passing on insights concerning information that is a few days or even weeks old.
When you look at the fast-paced world of CPG manufacturing, the value of data analytics and the speed and availability of insights can make a huge difference. With greater visibility, supply chains can be more efficient, you can cut costs and create a better experience for your customers.
This is the promise of using AI insights for supply chain management. AI can process data from multiple sources across the supply chain to provide real-time insights while creating greater visibility into supply chain operations. These insights can then be used to improve everything from inventory management to quality control and customer satisfaction.
In this post, we are going to look at some of the ways supply chain management can be improved using AI and analytics.
Much of the work in today’s warehouses is digitized. Modern warehouse workers scan items in and out as they are moved through a warehouse and in many cases, they might have smart sensors that provide feedback without the worker even needing to scan or input the data. This means that there are many opportunities for data analytics as it concerns warehouse operations.
One example could be the flow of a particular product or material through the warehouse. When an AI system notices changes, it could respond by sending an alert to managers. Maybe the alert will tell the managers that they need to plan by increasing or decreasing the supply. Maybe specific teams are using the materials faster than expected. Regardless of what it is, these insights could help the warehouse with issues like demand planning or improving various processes.
Manufacturing insights can help the entire supply chain run more efficiently. AI can be used to monitor a range of KPIs and alert key personnel to any unexpected changes. It can also handle predictive analytics to prevent equipment failures and save money on expensive repairs. AI analytics can also help with issues associated with quality control and help managers find ways to improve productivity in manufacturing facilities.
Transportation and Delivery
Transportation is one of the highest cost factors in most supply chains. This means that it can be one of the areas where AI can have the biggest impact. By reducing waste or making transportation routes more efficient, seemingly minor changes could save a business a considerable amount of money.
As an example, the AI could analyze data concerning transportation and delivery data to find that late arrivals at a logistics hub are adding to costs. This data can then be used by management to find ways to reduce late arrivals. Beyond saving costs, being more efficient in transportation and delivery could have the effect of increasing customer satisfaction.
These are just a few of the ways AI can improve supply chain management. With powerful insights that are more available, you can get ahead of disruptions instead of just reacting, manage the expectations of customers and clients, stay ahead of changes to supply and demand, and more. It is all a matter of the insights you need and the data you have.
With Crux Intelligence, these insights are more accessible than ever before. Our AI analytics platform can connect data from across the entire supply chain for improved visibility and on-demand insights. CPG companies, retailers, and manufacturers can measure OTIF metrics at a tactical level to ensure compliance. With our natural language interface, insights are accessible to everyone and they are can be obtained at any time – CPGs can forget about OTIF penalties, saving on charges for noncompliance, penalty fees, and expedited freight costs to ensure orders are fulfilled.