4 Ways AI Will Impact and Improve Supply Chain Optimization

Once a popular theory in sci-fi movies, Artificial Intelligence (AI) has vastly grown to become a common topic in the mainstream media. In fact, over 20% of enterprises are using AI in the core parts of their business. From cybersecurity to energy to healthcare, the applications of AI are unlimited.

Now, the revolution is spreading across the supply chain industry. From improving demand forecasting to managing order deliveries, AI has the power to enhance your entire supply chain. Here is how it can impact your supply chain optimization.

1. Better Data Analysis

Businesses usually collect lots of data on clients, markets, and operations, but any supply chain professional will tell you that analyzing this data is hectic. With AI, it’s easy to take into account a variety of metrics and factors, especially when enhancing demand forecasting accuracy. You can also take advantage of predictive analytics during supplier selection to improve your supply chain sustainability.

AI also continuously adjusts your analysis results based on the current weather, real-time sales, inventory, and other factors. With all the information, it’s possible to optimize your processes in your distribution or manufacturing facility.

2. Effective Supplier Management

For many logistics professionals, supplier-related problems can be quite frustrating. Given that many companies source up to 80% of their components from suppliers, a simple mistake by a supplier can affect your internal processes and reputation.

AI can analyze your supplier data, like delivery performance, past evaluations, and credit scoring. It also finds patterns in their quality levels and creates track-and-trace data hierarchies for them. With this data, making decisions on certain suppliers is made easier and faster when it comes to procurement.

AI also offers weather data, which you can share with your suppliers to improve their transportation planning.

3. Boost in Productivity

You don’t need to use manual processes to assess your supply chain management performance. Artificial intelligence helps to determine all of the factors that are affecting your supply chain performance. According to a report by DHL and IBM, AI uses machine learning to identify fraud and eliminate trivial tasks that humans complete.

By automating time wasting and repetitive tasks, AI can boost your productivity by up to 60 %. It also predicts demand and optimizes the flow of critical components in your supply chain to keep the production moving smoothly.

4. Reduced Operations Costs

The use of AI provides invaluable insights into every aspect of your business, including warehouse management, logistics, and transportation management. For example, AI-powered visual inspection helps to identify damages in cargos and suggests a corrective measure. Also, intelligent robotic sorting provides a high-speed sorting of parcels and shipments that eliminates manual labour.

AI can also forecast when orders will arrive or leave the warehouse, and it also significantly reduces forecasting errors. You’re able to adapt to changes in the market or distribution network, thus mitigating risks that could otherwise cost you. Basically, the implementation of AI can reduce transport, warehousing, and supply chain administration costs by up to 40%.

Partner with Us

AI makes it possible to implement supply chain optimization strategies that work in your favour. At Orca, we offer supply chain optimization software that can save you money and create efficiencies by offering better visibility for your data. The combination of AI and our software will definitely provide greater business value for your supply chain.

If you have any questions, feel free to call now at 1-844-GET-ORCA, or email us at

By | 2019-02-11T15:05:07+00:00 February 11th, 2019|Software Benefits|0 Comments