Adam Honig is the CEO and cofounder of Spiro.AI and is passionate about helping companies grow using artificial intelligence.
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The U.S. supply chain is an essential part of the American economy. It contains 37% of all jobs and employs 44 million people. And right now, the most important players are frustrated and overwhelmed.
Although freight costs are currently low, they are frustrated when geopolitical events impact their ability to get raw materials. They don’t have visibility into all of their customer interactions. They are uncertain about their profitability when their customers change their buying behaviors. Their forecasting is skewed so they end up with either a warehouse full of inventory or many empty shelves.
It has been said that when you are in the desert, all you want is water. So it is with supply chain leaders. When all around you is uncertain, all you want is certainty.
Unfortunately, there is no ‘magic wand’ to wave current conditions away. Recovery from this surge of uncertainty will take time. There are competing reports on when this will be—some say it could take three years while others are forecasting a return to normalcy (whatever that is) in another year or so.
If you are a supply chain leader who is trying to survive with manual processes and systems (spreadsheets, anyone?), there’s still time. Artificial intelligence (AI) gives you more control over managing your business in every sector of the supply chain—manufacturing, logistics, distribution and even materials providers. Not letting outdated legacy systems and manual processes bog them down, many companies are investing in digital solutions to modernize supply chain operations.
World events have made it critical that companies become more data-focused and digitally savvy. From sales to customer service to operations and fulfillment, companies in the supply chain that leverage AI and machine learning—especially to get deep visibility into their customer relationships—will fare best. By modernizing the front office, you are taking control and setting the organization on the right path. Fortunately, advancements in AI are making this shift easier. Specifically, AI can help in three key areas:
Deepen Relationships With Customers
Companies should be increasing customer intimacy. Understanding what customers want and need, as well as any challenges they may be facing, builds trust. Proactively improving customer relationships with AI means, if and when any ordering patterns shift—possibly as a response to all the macro events—leaders will be able to forecast more accurately. This is true for manufacturers, as well as their distributors, installers and logistics vendors.
Hire Tech-Smart Talent To Replace A Retiring Workforce
By hiring staff who are both comfortable and proficient with technology, companies in the supply chain can best cope with their aging workforce, streamline knowledge transfer and respond to expectations from new employees. It’s technology that can help workers be most productive. With AI, business leaders can expand human ability, replace manual tasks and reduce repetitive activities. New employees want careers in companies that embrace technology, so organizations offering modernized platforms and processes attract the best and brightest.
Invest In Predictive Analytics
Companies using technology to manage growth are dealing better with uncertainty. By putting predictive analytics in place, leaders can quickly identify and reduce risks, improve operations and impact the bottom line. Predictive analytics uses machine learning to analyze history and make predictions. This way, leaders can understand what is most likely to happen in order to improve an outcome.
Understanding the variables in the market gives leaders the best chance at developing their planning strategy, even in the midst of uncertainty. Adopting automation and technology, such as AI, gives leaders the clarity to plan and adapt in real time. Although it may not be the magic bullet to guarantee certainty, AI helps organize chaos and provides actionable insights that give leaders more control during an unpredictable time.
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