AI in Supply Chain: How AI transforms staff roles shifting focus on high-value tasks
It’s no secret that with the implementation of Artificial Intelligence (AI) technologies, supply chains are becoming more efficient, resilient, and responsive. This transformation enables workers to shift their focus from repetitive and tedious tasks to more strategic and value-added activities.
Let’s explore how AI is reshaping the supply chain landscape and highlight the new opportunities it creates for workers.
Enhancing decision-making with predictive analytics
One of the most significant contributions of AI in supply chains is predictive analytics. AI systems analyse vast amounts of data to predict future trends, demand fluctuations, and potential disruptions. This capability allows supply chain professionals to make more informed decisions. For instance, AI can predict demand spikes, enabling companies to adjust inventory levels proactively.
Impact on workers: With predictive analytics handling complex data analysis, workers can concentrate on strategic planning and decision-making. They can develop more robust strategies to enhance supply chain agility and responsiveness.
Streamlining inventory management
AI-powered tools optimise inventory management by accurately forecasting demand, reducing excess stock, and minimising stockouts. Machine learning algorithms can also analyse sales data, market trends, and seasonal patterns to ensure optimal inventory levels.
Impact on workers: Employees can now focus on improving supplier relationships, negotiating better terms, and exploring new sourcing opportunities. They can also dedicate more time to innovation, such as developing new products and services.
Improving supply chain visibility
AI enhances supply chain visibility by providing real-time tracking and monitoring of goods in transit. This transparency allows for better coordination and quicker response to issues such as delays or disruptions.
Impact on workers: With real-time visibility tools, workers can shift their attention to managing exceptions and handling critical issues that require human intervention. They can also work on improving overall supply chain efficiency by identifying and addressing bottlenecks.
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Automating tasks
Robotics and AI technologies automate repetitive and time-consuming tasks such as data entry, order processing and inventory management. This automation reduces errors and increases efficiency.
Impact on workers: Freed from tedious, and sometimes hazardous tasks, employees can engage in more creative and complex problem-solving activities. They can also focus on customer service, enhancing the overall customer experience by providing personalised and responsive support.
Discover how DexoryView automates cycle counting and provides insights into space optimisation
Enhancing supplier relationship management
AI tools assist in supplier selection, performance evaluation, and risk management by analysing data from various sources, including market reports, financial statements, and historical performance records.
Impact on workers: Supply chain professionals can spend more time building strategic partnerships and negotiating favourable contracts. They can also develop and implement supplier development programs to ensure continuous improvement and innovation.
Facilitating sustainable practices
AI helps companies implement sustainable supply chain practices by optimising routes for transportation, reducing energy consumption, and minimising waste. AI-driven insights enable companies to track and improve their environmental impact.
Impact on workers: Workers can focus on sustainability initiatives, such as developing eco-friendly products and processes. They can also engage in corporate social responsibility (CSR) activities, enhancing the company’s reputation and customer loyalty.
Case study: Data-led robotic and AI technology to optimise operations at Huboo warehouses
Bristol-based Huboo is a fast-growing and award-winning fulfilment provider based in the UK and mainland Europe. Since 2017, they have revolutionised the world of eCommerce fulfilment, using environmentally sustainable and human-centric methods that support a wide range of online retailers.
Huboo puts people at the heart of everything they do and is always looking for ways to make life easier and better for their colleagues. Dexory introduced autonomous robots to scan the entire warehouse, building a digital twin for real-time data analysis and insight into the storage of goods, which feeds into Huboo’s optimisation programme.
They have seen remarkable results from the beginning:
1. Space optimisation: Optimised operations and realised maximised efficiency by pushing to 99% occupancy.
2. Immediate financial benefit: Aligning with the optimisation programme, realised reduced costs of inventory by 10% per year.
3. Customer satisfaction: Optimum customer experience for clients = +5pt customer satisfaction.
'’We’re proud of our fulfilment service that puts people at the heart of everything we do, and we’re always looking at ways to make life easier and better for our brilliant people. Our engagement with Dexory and use of their robotics and AI will optimise our warehouse space, allowing us to reduce costs and improve performance while delivering a better working environment for everyone at our fulfilment centres’’.
Paul Dodd, CTO and Co-founder of Huboo
Conclusion
The integration of AI in supply chain management is not just a technological advancement; it is a strategic enabler that empowers workers to focus on more impactful and fulfilling tasks.
By automating routine processes and providing advanced analytical insights, AI allows supply chain professionals to concentrate on strategic planning, innovation, and sustainability.
As AI continues to evolve, its role in supply chains will only grow, further transforming the industry and creating new opportunities for workers.
