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Supply Chain 4 min read

The future of AI in supply chain management

An illustration of activity in a warehouse.

AI is revolutionizing the supply chain, from predictive analysis to real-time delivery tracking. Here's how it could benefit your business.

Artificial intelligence (AI) has the power to revolutionize industries — and supply chain management is no exception. In today's fast-paced and ever-evolving business landscape, supply chain management has already experienced a significant transformation through AI, simplifying processes and driving efficiency. 

Let's look at six ways AI is making a difference in supply chain management.

Real-time delivery tracking and route optimization

AI-powered systems enable real-time tracking and monitoring of deliveries. By integrating data from various sources such as GPS and sensors, AI algorithms can provide comprehensive visibility into the delivery workflow. This allows businesses to keep customers informed about the progress of their delivery and address any potential delays proactively. 

AI algorithms, such as those from HERE, can also optimize delivery routes based on real-time data such as traffic conditions, weather forecasts, and road closures. By dynamically adjusting routes, AI helps minimize delivery times, reduce fuel consumption, and enhance overall efficiency.


A graphic illustrating the supply chain journey: a container ship, port, truck, warehouse, truck, distribution center, bike, house — a hand holding a magnifying glass floats above the supply chain, identifying the source of possible disruption.

Supply chain forecasting and planning

One of the key areas where AI is transforming supply chain management is demand forecasting and planning. AI algorithms and location technology tools can analyze vast amounts of historical data, market trends, and customer behavior to provide a more accurate outlook of current and future demand. This enables companies to optimize inventory levels, reduce stockouts and improve customer satisfaction.



Efficient warehouse management

AI is also revolutionizing warehouse management by streamlining operations and reducing inefficiencies. Through the use of AI-powered systems, warehouses can automate tasks such as inventory tracking, picking, and packing. 

AI algorithms can optimize warehouse layouts, improve routing efficiency, and minimize errors, leading to improved productivity and cost savings.

Supply Chain news story

Real-time supply chain visibility

AI-powered technologies enable real-time monitoring and tracking of supply chain activities. By integrating data from various sources such as sensors, GPS, and IoT devices, AI systems can provide comprehensive visibility into the supply chain. 

This allows businesses to identify bottlenecks, proactively manage disruptions, and make data-driven decisions to optimize the supply chain. For delivery and logistics, new tools such as HERE's AI-based UniMap is an up-to-date representation of the world so they can quickly react to unexpected events in the supply chain.

A warehouse worker lifts a box onto a shelf in a fulfilment center.

Risk mitigation and resilience

AI technologies can help supply chain managers identify and mitigate potential risks. By analyzing data from multiple sources, including social media, newsfeeds, and weather forecasts, AI algorithms can detect early warning signs of disruptions such as natural disasters or geopolitical events. This allows companies to develop contingency plans, reroute shipments, and ensure business operations run smoothly.


Predictive maintenance and quality control

AI's ability to process and analyze large volumes of data in real-time enables predictive maintenance and quality control in the supply chain. By monitoring equipment performance and analyzing sensor data, AI systems can predict maintenance needs, reduce downtime and optimize production schedules. AI can also analyze quality data to identify potential issues early on, ensuring product quality and reducing waste.

As we can see, AI is having a transformative impact on the supply chain. From automating delivery workflows, and predicting demand to real-time visibility, AI is revolutionizing the entire supply chain ecosystem. By using AI technologies, businesses can optimize operations, improve efficiency, and boost customer satisfaction.

Ian Dickson

Ian Dickson


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