Supply chains are notoriously difficult to manage. How can you forecast supply and delivery from end to end without fail, ensuring you both have enough stock to take orders and there are no hiccups in the delivery side before it gets to the customer? Big data is making serious headway here. Terabytes of customer data, shipping data, and more can be analyzed using artificial intelligence to make better predictions for inventory and shipping, leading to a more sustainable -commerce business.
e-Commerce is growing in popularity, but the tools used to manage orders and the supply chain are oftentimes still lagging. This means lack of inventory during order surges and delays in shipping, or worse, inventory sitting around unsold, using up capital that could be used elsewhere. This drives up the cost of doing business, which can make customers run the other way. Effectively managing a supply chain isn’t just about getting the product out the door – it’s also about keeping costs low.
Sustainability in the supply chain can be enhanced using artificial intelligence, which translates to happier customers. Many customers would choose a different supplier if better delivery options were available, while many of the same customers would demand a refund or take their business elsewhere if an order doesn’t arrive on time as promised.
What’s more, enhancing sustainability in the supply chain can also lead to fewer CO2 emissions by streamlining the shipping process. In 2018 alone, empty cargo space in shipping trucks accounted for 16% of total mileage for just one shipping company. Algorithm-enhanced shipping routes can cut CO2 emissions by 100,000 metric tons per year — and a savings of $400 million in lost shipping costs!
Artificial intelligence has the power to streamline many aspects of business and logistics, leading to a better bottom line for all of us. Learn more about AI and the sustainable supply chain from this infographic!
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