Use of AI in Navigating Global Supply Chain Disruption Crisis
The disruption to global supply chains has become more widespread. It’s a common occurrence to see product shortages and delays today.
As companies scramble to plug the gaps caused by natural disasters, pandemics, political uncertainty, economic upheavals, and sudden changes in consumer preferences and demand, significant strategic shifts to the configuration and operation of supply chains are critical.
A recent survey by Ernest & Young LLP raised serious concerns about the resilience of many organizations’ global supply chains. Of the 200 senior supply chain executives interviewed, 72 percent reported being negatively impacted by global supply chain disruptions, with a vast majority struggling to navigate the disruptive forces and restore operations to a steady state. To brace against these big supply chain disruptions, enterprises need to reevaluate their disruption-mitigation approaches and consider investing in more resilient technologies such as AI.
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The Argument for Using AI in Supply Chain
Artificial Intelligence (AI) based systems can detect potential risks in supply chain networks, often before they affect your operations. With such a mechanism in place, companies can reap the benefits of increased visibility, greater transparency, and better decision-making capabilities which ultimately translates into improved customer service.
An AI strategy focuses on putting data at the core of the supply chain to build an intelligent network. Different data sources are exploited for deeper insights across the supply chain, including news outlets, weather feeds, sensor readings, social media, CRM information, and unstructured reports. This allows supply chain professionals to identify trends & patterns, make informed decisions about demand and supply, and fine-tune their operations.
Potential Causes of Global Supply Chain Disruptions
Many interconnected factors trigger a supply chain crisis. Recently, supply has been constrained by global supply chain disturbances, labor shortages, temporary business disruptions linked to COVID-19 outbreaks, and commodity shortages related to the 2022 Russian invasion of Ukraine. Pandemic-related shutdowns and production delays worldwide have had ripple effects throughout many industries, impacting the availability of both consumer goods and inputs needed for production.
Other causes of supply chain disruptions that companies should be aware of include the following:
- Cyber and security breaches: This could mean anything from a ransomware attack to a data leak.
- Financial and company viability: Any internal or company-related issue that could impede production, including revenue flow.
- Transportation or logistics: Could include adverse weather conditions, traffic, shipping damages, or delayed shipments.
- Man-made errors: This includes human miscalculations, fire, warehouse explosions.
- Geopolitical events: Disruption triggered by any global political events. An example of this is Brexit or tensions between Russia and Ukraine.
Catastrophic events: Earthquakes, wildfires, and extreme weather can also cause significant disruption to the supply chain.
How Ceres Technology Can Help You Proactively Respond to Global Supply
It wouldn’t be far-fetched to say that bottlenecks in the global supply networks are here to stay. To stay ahead of the curve in light of the ever-evolving challenges, companies must prioritize visibility, agility, and resilience in their end-to-end supply chain processes. Using data-driven technologies, such as machine learning and artificial intelligence, can give beneficial predictive insights, which assists in lessening global supply chain risk.
Cere’s AI capabilities give full and comprehensive visibility from the purchasing point all the way to package delivery. With it, companies can identify patterns, identify any weak points, and gain actionable insights to drive timely decisions that make their supply chain more efficient. We can utilize AI in your supply chain to help you:
- Maintain accurate inventory management
- Increase warehouse efficiency
- Enhance warehouse safety
- Reduce operation costs
- Gain supply chain transparency
- Unlock fleet management efficiencies
- Facilitate on-time delivery
The Ceres Nostradamus Platform identifies patterns in data allowing clients to anticipate future supply chain disruptions in advance and proactively respond to them. The powerful combination of both technologies can uncover insights that solve some of the most pressing challenges in supply chain management.
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Combining human oversight and experience with the right AI tool is imperative to stay competitive. Discover how everything works through our Real-time visibility platform that can revolutionize your entire supply chain. Contact us today to schedule a demo and learn more.
The benefits of AI and analytics–powered supply chains are plenty, and now is the best time for your business to leverage them.
Discover how it all comes together with our Real-Time Visibility platform that can connect your entire supply chain.