In the supply-chain and logistics industry, AI is proving to be a game changer. McKinsey expects businesses to gain between $1.3tr and $2tr a year in economic value by using AI in their supply chains. According to PricewaterhouseCoopers, AI could contribute almost $15.7tr to the global economy by 2030.
AI in supply chain
Forecast demand. When inventory lags demand, companies suffer losses. AI is ramping up efficiencies in network planning and predictive demand, allowing merchandisers to become more proactive. By knowing what to expect, they can adjust the number of vehicles and direct them to locations where maximum demand is expected. This leads to lower operational costs.
Smart warehouses. A smart warehouse is a fully automated facility wherein most work is done through automation or software. In the process, tedious tasks are simplified, and operations become more cost-effective. Alibaba and Amazon have already transformed their warehouses through the use of automation. Amazon recently rolled out machines that automate the job of boxing customer orders.
AI can improve delivery times and reduce costs through the use a route planner based on genetic algorithms to map out optimal routes for deliveries.
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