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Generative AI’s positive impact on supply chain

Generative AI's positive impact on supply chain
Generative AI's positive impact on supply chain

A survey found that 84% of global businesses experienced supply chain disruptions in the past year. In the US, 85% of businesses reported disruptions, down from 87% in 2023 and 88% in 2022.

In its latest report by supply chain provider Blue Yonder, finds that 91% of global organizations find generative  artificial intelligence (AI) useful for improving supply chain processes and decision-making.

The company released a 2024 Supply Chain Executive Survey this week. Respondents in the survey were executives in the supply chain field. 

Delivery planning

London-based Blue Yonder’s platform allows retailers, manufacturers and logistics providers to meet customer demand through delivery planning. The company works with over 3,000 businesses globally to ensure they have sustainable and profitable operations. 

Logistics providers who do business with Doddle include Amazon, Australia Post, FedEx and the United States Postal Service. 

Andrea Morgan-Vandome, chief innovation officer at Blue Yonder says supply chain disruptions are still a major challenge for businesses. “With a majority of global organizations reporting disruptions in the last year, it’s clearer than ever that we need innovative technology solutions to respond to those disruptions and enable businesses to adapt with lasting resiliency,” says Morgan-Vandome. 

Supply chain disruptions 

The logistics and supply chain industry is grappling with disruptions such as the Red Sea crisis. The event has forced shipping companies to re-route shipments and think about alternative ways to get cargo to a destination. 

This includes opting for intermodal transport and choosing to air freight cargo to keep supply chains moving. 

Blue Yonder’s report highlights just how businesses are being affected by disruptions over the past year. 

  • 48%: Lack of availability of raw materials.
  • 47%: extended delivery times from material suppliers. 
  • 41%: lack of availability on shipping vessels. 

Customer delays 

Globally, the most common results of supply chain disruptions are customer delays (42%), stalled production (42%), and failing to meet new regulations (39%). In the US, 43% of respondents reported customer delays, down from 52% in 2023 and 58% in 2022.

Another key finding in the survey is that businesses in the US are focusing on sustainability in their supply chain and improving transport efficiency. 

Investment in AI 

AI is reshaping the logistics and supply chain right before our eyes. Companies have tapped into this technology to improve operations and efficiencies. The report shows that AI is being widely adopted globally. 

Ninety-one percent of global organizations find generative AI to be effective in optimizing supply chain processes and decision-making.

“Companies are realizing the power of AI and generative AI on their supply chains. This technology is changing the way companies plan their supply, react to changes in demand, and pivot through disruptions. To truly digitally transform your supply chain means incorporating AI to stay ahead and meet your business objectives,” says Morgan-Vandome.

ALSO READ: The Red Sea effect: Salalah Port introduces alternative

Photo Credit: Canva

About the author

Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.

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