While machine learning software and artificial intelligence (AI) have arguably been used to reinvent marketing, a new survey of retail supply chain professionals, mostly in the grocery space, shows that only one in three have incorporated AI capabilities into their supply chain management processes. Another one in four are working toward that goal.
The survey from Symphony RetailAI, a provider of such AI-driven solutions, also found that disconnected systems, poor demand forecasting accuracy and dated technologies remain key challenges in supply chain management for high-volume retailers.
Among the findings:
- Nearly two thirds of retail supply chain professionals struggle with disconnects between systems.
- Forty-eight percent rate their forecasting technology as average to very poor.
- Forty-two percent describe less-than-optimal synchronization between their inventory and channels, with nearly as many worrying about fulfillment complexities, stocking inefficiencies and high product lead time.
- Forty-three percent said they’re challenged by lack of real-time visibility into all supply chain inventory.
AI quality and speed were seen as the two areas where the technology held its greatest potential for the supply chain. Fifty-nine percent selected either “real-time supply chain updates” or “quality control” as the supply chain processes most likely to be impacted by the integration of AI. Other predictions for AI included improved demand management (49 percent) and the ability to identify and address inefficiencies (44 percent).
AI has applications in the supply chain for everything from autonomous robots, drones, self-driving vehicles and shipment-tracking sensors to more sophisticated software that can help forecast inventory counts or transportation times.
Beyond addressing labor constraints, a data-driven supply chain supported by AI promises to support demands for mass customization and innovation, according to a new report on the topic from The Consumer Goods Forum and PA Consulting. The study states that AI and robotics automation “could become the autopilot behind a supply chain, which handles planning and fulfillment, designs products, monitors inventory levels, optimizes sourcing, synchronizes production and maintains machinery.”
- Study Shows Half of Retail Leaders Are Embracing AI to Transform the Supply Chain – Symphony RetailAI
- Strengthening the Retail Supply Chain (study) – Symphony RetailAI
- Ai And Robotics Automation In Consumer-Driven Supply Chains – Consumer Goods Forum
- Where is supply chain software headed? – Supply Chain Management Review