Only 24% of Supply Chains Have Integrated AI

Orderly
June 6, 2024

The dark days of supply chain management done in spreadsheets aren’t behind us yet. While technological advancements are moving faster than ever, bringing great swathes of convenience, elimination of task duplication, and admin burden, it can be hard to get everyone on board. “The State of the Supply Chain,” from Inspectorio found just 24% of companies have integrated AI into operations. So, what’s the hold-up, and how can we overcome the pain points?

The Appetite for AI is There

The survey found that 82% of supply chain professionals indicate technology advancements will have a significant impact on the supply chain over the next five years but feel there is a lack of AI-powered tools (47%) or they are working under restrictive IT policies (22%). So, what’s the solution? While we may spend more of our days chatting with ChatGPT than with our colleagues, when it comes to AI adoption into the supply chain, is more education needed?

Resistance to change is natural in business. Traditional methods are how things are done, and some processes are deeply embedded in the food distribution industry. Unless someone can share the tangible benefits of AI technology, it can feel like an admin headache not worth bothering with, but it really is the future. While there are ‘hallucinations’ in AI dialogue that can be off-putting, the future of big data will transcend traditional forecasting models by incorporating many variables.

We designed our systems for Orderly to forecast beyond looking at previous sales patterns. Instead, we wanted to integrate real-time data streams from social media, weather forecasts, traffic patterns, and events, offering a granular view of potential sales, opportunities, and threats.

AI-Powered Systems for Supply Chain Management

We should know, as we make them! Our AI-powered predictive forecasting, stock, and order management solutions are specialised for food and beverage supply chains. Look at what Orderly does. AI is so much more than chatting or generating images. AI enhances supply chains by predicting demand, optimising routes, automating inventory management, inspecting product quality, analysing supplier performance, streamlining warehouse operations, and just like we’ve pioneered at Orderly, optimising for sustainability and food waste reduction.

You can use AI in a way that’s right for your goals. Brands and retailers are leveraging technology to enhance customer engagement and improve product traceability. Meanwhile, factories and suppliers are prioritising AI to enhance operational efficiencies according to a new report.

The Orderly Advantage

We’ve seen our own clients use our tools in a multitude of ways. The Orderly Score acts as a digital store assistant, using big data and AI from various data sources including POS, labour, inventory, and CCTV. Among a host of features designed to influence responsibility, reduce waste, and increase profit sustainably, Orderly Score includes:

  • Temperature and presence sensors for stock availability and automated counting
  • Enriched data comparing with billions of anonymised datapoints from similar stores
  • Transport, weather, lockdown, and driver availability

AI-Powered Inventory and Order Management

Our inventory and order management systems leverage AI to place more accurate orders and anticipate supply risks. By analysing historical sales data, current market trends, and real-time factors like weather conditions and local events, our AI systems can predict demand with unprecedented accuracy. This ensures that orders are placed in the right quantities at the right times, reducing both overstock and stockouts.

Additionally, our AI systems monitor supply chain disruptions and potential risks. For example, if a key supplier faces a production delay or a transportation route is impacted by severe weather, our AI tools can identify these risks early and recommend alternative suppliers or routes. This proactive approach helps to maintain a smooth and efficient supply chain, minimising the impact of unforeseen issues.

AI Technology Doesn’t Need to Be an IT Risk

It’s natural to have IT restrictions, but the reality is you are far more likely to have a data breach from a previous or current employee. AI can be used safely with the right guardrails in place such as implementing robust security measures, maintaining data privacy through encryption, and conducting rigorous testing before deployment. Any supplier offering AI technology would welcome a chance to discuss these questions and concerns.

AI Technology Can Deliver ROI, Fast

It may surprise you that advanced digital solutions can be set up with minimal disruption and start making a return, fast. The savings come in sustainability, all unlocked via better intelligence. This can inform staff when to cease upsells of certain products during busy times (reducing queues and idling cars in drive-thrus) or helping to consolidate corporate supplier deliveries in one drop. That’s just the start.

Curious about what we can do, or need a meeting to get an AI-reticent colleague over the line? Speak to us today.