https://www.investopedia.com/terms/s/supplychain.asp
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It's no secret that the effects of the pandemic and supply shocks created after lockdowns have been disruptive to supply chains and logistics. AI is being deployed to study, quantify and fix problems that have arisen as large national hubs have become more busy and supply chains are disrupted through whipsaw demand actions.
To begin our discussion, we need to define what a supply chain is. A supply chain is the connection between a company and its suppliers and consumers. It is the link between how goods are produced and distributed, and can be visualized as a web of value-producing efforts. Logistics is the movement of goods produced by a company to it's purchasers. When logistics and supply chains work well, companies realize lower costs of operation, scalability and improved profits. When reliability and stability decrease, supply chains can be stressed, logistics can strain and businesses can lose profit, which leads to increased costs to consumers and increased wait time. AI and computer systems that analyze many data points can be used to strengthen supply chains and logistics in businesses during times of increasing volatility.
Baton, a logistics company, has been hard at work minimizing the effects of the supply chain crunch on its customers. One way to minimize supply chain disruption is through computer programs that locate the cheapest fuel for trucks, best routes and most efficient ways to connect loads. Intermodal trucking fleet data including GPS information can be fed into an AI system to reduce waste and maximize efficiency. AI systems learn about data points, bottlenecks, delivery schedules and much more in a methodical way that can add stability where stability is shaky. Companies that adapt and employ AI systems during times of stress will remain competitive while those who do not may miss out on opportunities and threats.
Almost half of business leaders surveyed use AI to make supply chain decisions. AI can help find the issues in a supply chain, analyze data, find problems through simulations and work to scale operations. It's not a small aspect of business and it's not a hidden path to success in the logistics of a business.
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