AI supply chain improvement

The Role of AI in Building a Successful Supply Chain

The Role of AI in Building a Successful Supply Chain

The food we buy at the supermarket, the internet service we receive from the supplier, the clothes we purchase at a shopping mall – are all end results of a supply chain.

The purchase of these products and services may seem normal to us, however, behind all these there is a complicated process that is responsible for ensuring a successful and efficient delivery of these products and services to end customers.

Since the 20th century, when the term “Supply Chain Management” appeared, until now, companies and businesses have been investing a lot of resources to improve the supply chain process and make it as efficient as possible.

With advances in technology such as automation, companies began to understand that using the right tools can greatly streamline the supply chain. Since automation, businesses have constantly been looking for innovative solutions.

Without a doubt, Artificial Intelligence (AI) has been one of the biggest innovations that supply chain managers have been paying close attention to. According to Gartner, AI is one of the most trending technologies for improving supply chain performance.

But how exactly can Artificial Intelligence improve your supply chain?

What is a supply chain and how can AI improve it?

The process of manufacturing and selling goods and services is known as the supply chain. This process begins from the first stages such as the collection and supply of the resources and continues until the last stage, which is the sale.

Managing this process is extremely important, as it is not only directly related to customer satisfaction, but can also be a decisive factor in reducing the cost of production.

The main goal of including AI in the supply chain process is to create a system that makes intelligent human decisions and analyses without human interference.

Implementing AI into the supply chain enables you to save time and money during each stage of production. It also optimizes processes that have already been implemented in your business model. In other words, it creates a win-win situation.

In addition to helping businesses reduce costs, AI can be used for high-performance human resources management systems because it facilitates the monitoring of conditions and personnel.

Inventory management

Inventory management

For example, to avoid overstocking or understocking, companies like Amazon use AI and ensure proper inventory management. This is not an easy task and requires a lot of man-hours. However, with AI the process is much quicker and more effective. 

With all the historical data about the sale of your product in particular months, the artificial intelligence system can forecast and tell you what is the expected quantity of goods that you need to have. This will ensure that the supply of your product matches the market demand.

Warehouse management

Now that you have the exact amount of product, where else can AI be useful? One of the biggest uses of the system is warehouse management.

By analyzing the data about the most demanded products, warehouse space capacity, product size, etc., the Artificial Intelligence system can provide the best suggestion on product allocation and warehouse management. 

Quick Delivery

fast delivery

The delivery of products is equally important in the supply chain process. Here as well, AI helps businesses save money.

AI-powered algorithms can inform managers about road conditions with respect to forecasted details such as weather, congestion, and traffic accidents. These details can be used to find the fastest road which ultimately saves time and also requires the least amount of fuel.


Artificial intelligence has the ability to completely transform the supply chain and make it as efficient as possible. With benefits like complete automation, demand forecasting, operation optimization, and delivery time prediction, companies can take their service to the next level.

With all that said, it’s no wonder that around 72% of the 1,001 supply chain professionals surveyed have said they use AI in their operations or plan to do so in the next 5 years.

It is very important to keep up with innovation and gain a competitive advantage over other players in your industry. So why not schedule a free call with our AI consultants so we can see together how MaxinAI can be of great help to you.

Get in touch
E-mail Facebook Linkedin Instagram
© 2021 - MaxinAI | All Rights Reserved
© 2021 - MaxinAI | All Rights Reserved