AI And Supply Chain Management

Companies around the U.S. ship millions of packages every year. With all these packages going around there are bound to be some mistakes, and customers hate mistakes. As of 2018, about 8 in 10 customers were unlikely to shop again with the same vendor after a bad experience with delivery, that’s 34% more than 2017. Businesses face challenges throughout the supply chain, each of which has the power to make or break the bottom line.

 

In 2017, companies in the US spent nearly $1.5 trillion on logistics and shipping, $90 million more than the previous year. During 2017, 23 million shipping containers passed through US ports and U.S. businesses saw costs rise throughout the entire supply chain. The challenge remains, customers expect fast and easy deliveries.

 

Three in four customers would choose another seller over Amazon if better options for shipping were presented, and 90% would expect a refund for a late delivery, or they will take their business elsewhere. So in order to meet this high bar that customers have set companies need to find inefficiencies and pinpoint the causes to predict and stop future problems.

 

Inefficient movement of people, tools, and equipment is expensive. Over the course of 2018, empty trucks alone accounted for 16% of total mileage for only one US company. AI can help with problems like this. Algorithm-optimized routes designed to save money, gas, and time reduced fuel consumption, CO2 emissions and costs.

Find out more about AI’s role in the supply chain here.