Supply chain resilience: Harnessing the power Gen AI - Locate2u
Supply chain organizations face unprecedented challenges – from geopolitical uncertainties to the complexity of global operations. Amid this upheaval, artificial intelligence (AI) has emerged as a powerful tool to overcome these obstacles. By leveraging the vast potential of AI, businesses can enhance visibility, optimize decision-making, and develop the agility needed to thrive in an uncertain world.
The Role of AI in Supply Chain Resilience
Mary Rollman, KPMG’s supply chain leader, emphasizes that supply chain challenges, whether natural disasters or global conflicts, will continue to ebb and flow. However, with the rise of e-commerce and the increasing competitiveness among brands on a global scale, the challenges seem insurmountable. Factors such as policy volatility, different shipping schedules, and inventory management further exacerbate these challenges. Rollman suggests that supply chain organizations must invest in and implement technology tools to streamline operations.
The Emergence of Generative AI (Gen AI)
Generative AI, or Gen AI, has positioned itself as a key player in bolstering supply chain resilience. This machine learning system is not only capable of generating text and images but can also automate tasks and analyze data. According to Accenture research, Gen AI has the potential to automate up to 58% of supply chain processes.
Benefits of Gen AI in Supply Chain Management
Where supply chain disruptions have led to significant revenue losses, Gen AI offers a solution by analyzing structured data to provide valuable insights into supplier networks. Procurement teams can leverage this technology to create chatbot interfaces, such as Accenture’s N-tier Supply Chain Navigator, enhancing customer satisfaction through personalized interactions.
Furthermore, Gen AI's ability to analyze large volumes of unstructured feedback, such as online reviews and social media sentiment, at lightning speed, enables businesses to improve products and services based on customer feedback. Retailers are already utilizing AI to revolutionize online shopping experiences, from virtual try-ons to product suggestions, ultimately enhancing customer satisfaction and loyalty.
Gen AI in the Retail Space
Amazon's substantial investment in science and AI, along with partnerships with universities and NVIDIA, demonstrates the retail giant's commitment to leveraging Gen AI for competitive advantage. The rapid data processing capabilities of Gen AI, as highlighted in a McKinsey & Company report, sets it apart as a transformative tool in the retail industry.
