10 May 2024

Top 10 Benefits of GenAI in the Supply Chain

GenAI application has seen a prominent rise in the supply chain sector, from driving informed decisions through planning to execution, with sustainability and scalability at the forefront.

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It was in the year 1950 when the Turing Test was invented. Its essence lies in just one basic concept. That a machine can display human-like intelligence and respond with equal aplomb, similar to a conversation. Cut to now, GenAI has been the ‘it’ technology, making itself a phenomenon no less. From seeing its application in smartphones to assist the user with daily functions to heavy industry streamlining their manufacturing process with much more proactivity, generative artificial intelligence has found its footing as the generational tech platform in which humanity sees its following stages of evolution. But how has it come through for the supply chain industry, which itself acts as a definitive cog that aligns the majority of business-as-usual tasks the users are accustomed to? From analytical insights to product improvement, GenAI has been a virtuous addition. Whether competing in a tough market with new offerings with highly demanded features or reducing the overall cost of functioning with optimum resource utilization, the marquee tech sees itself at the center of a positive overhaul in the present and potential future that’s about to unfold. In this write-up, we will highlight the top 10 benefits of GenAI in the supply chain.

What are the benefits of implementing GenAI in the supply chain?

A graphic exploring the benefits of GenAI in the supply chain
  1. Demand Evaluation

    It always benefits an organization to know the exact numbers their production unit has to churn out. From optimizing inventory levels to procuring the right amount of raw material to gauging a supplier’s capacity, among others, a GenAI platform with its equipped prowess of machine learning algorithms and artificial intelligence capabilities can aid the stakeholders in keeping up with the fluctuating demands, read better into the psyche of consumers through historical data and previous sales figures, and come out with more strategic plans for the upcoming product timelines.

  2. Risk Management

    One of the essential virtues of data is that it has a lot of hidden potential. A generative AI-powered risk management platform powers SCM with its ability to keep a tab on the latest happenings, economic performance, etc., to keep supply chain operations in good stead and vet through any informational piece available comprehensively for maximum impact. A fact that is more visible during proactive risk assessment. With its recommendations ranging from housing safety stock to diversifying suppliers' networks, the GenAI tool safeguards the entirety of the value chain framework against any unforeseeable disruptions.

  3. Sustainability

    Companies globally now have a responsibility to be conscious of their carbon footprint. From ensuring ethical practices that safeguard an employee’s well-being to making sure that their operations have a first-hand understanding of sustainability principles, SCM highlights ESG at the forefront before commencing work on the other faction. A GenAI platform keeps a tally of the scope of emissions while providing complete visibility into the schematic workings of value chain operations to ensure minimal to zero GHG emissions with adherence to government norms in tandem.

  4. Product Betterment

    You stay relevant based on how often your product features new updates that align with customer demands and market needs. This can range from completely revamping design to improve efficiency to incorporating a new workflow that is intuitive and accessible to users. GenAI, with its initiation of new ideas, aids management in building a creation that edges out the competition.

  5. Maintenance Cycle

    Through its innovative application of analytics, generative AI benefits stakeholders by allowing them to know precisely when the maintenance cycle of equipment and machinery is due. This predictive maintenance virtue from the headliner tech prevents costly breakdowns and assures seamless end-to-end functioning.

  6. Quality Control Checks

    You build up a loyal customer base based on how quality-efficient your offerings are. Generative AI brings in the attribute of checking standards with the utmost precision. This leads to minimum hiccups and maximum coverage in terms of QC run and keeps the target group experience metrics intact.

  7. Pricing Strategy

    It’s important to get a stronghold of your market share and expand it at every possible opportunity. And in this future defining step, knowing that the sweet spot of your pricing is the ‘it’ goal. The GenAI models study competitors' offerings and their pricing, in addition to their regions, to know how a conglomerate can navigate a crowded landscape to make a mark of its own. A generative AI platform provides a comprehensive understanding of human buying tendencies and their affiliations towards many pre-existing products to make an informed decision that aids the growth of up-and-coming enterprises.

  8. Supplier Relationship Management

    Every company has a network of varied suppliers to tackle disruptions and meet their consumer demands. However, as with multiple stakeholders, management becomes a much more complex task. However, with the inculcation of GenAI, complete analysis can be conducted on available suppliers & their market performance to ensure smooth end-to-end operations. The dynamics of this vital relationship translate into better contractual terms, reduced disruptions, and ever-adapting workflow to an organization's demand.

  9. Distribution Network

    Logistics make for a massive chunk of an enterprise’s expense. After all, the timely delivery of a product drives the ultimate customer satisfaction metric. Through the aforementioned tech, businesses can efficiently finalize the best distribution network. This comes in the form of defining the most strategic location for warehouses, the fastest way to reach your TG’s destination, and, more importantly, keeping your inventory updated in minimal turnaround time through smarter allocation of resources.

  10. Customization

    Companies often have to come up with a highly customized offering, keeping a specific target group in mind. This unique customization requires a nuanced idea that can be considered in tandem with generative artificial intelligence applications. The software can ideate a framework and give a complete roadmap for the stakeholders to follow.

The introduction of GenAI in the supply chain has had a tremendous impact. From unlocking the potential that wasn’t previously accessible to thinking out unlimited possibilities, the headliner tech is indeed the catalyst of our times. Be it upgrading planning capabilities to making sure that the execution of processes is duly done with complete optimization in place, GenAI is scalable, dutiful, and promising with unheralded potential.

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