10 Generative AI Supply Chain Use Cases in 2023

7 Ways in which Cloud and AI can boost integrated logistics

supply chain ai use cases

For example, it checks for seasonal fluctuations, and whether two or more types of change occur together, or if they’re mutually exclusive. With its vast array of applications, AI has the potential to streamline operations, enhance decision-making, and unlock untapped opportunities. In this journey through AI’s rising capabilities, we will delve into real-world use cases that demonstrate how AI is revolutionizing the supply chain. Furthermore, we will also explore the specific benefits that AI brings to the supply chain domain. In this long blog post, we discussed the potential of autonomous AI Agents for optimizing supply chains.

supply chain ai use cases

Artificial intelligence, particularly generative AI, offers promising solutions to address these challenges. By leveraging the power of generative AI supply chain stakeholders can analyze massive volumes of data, generate valuable insights, and facilitate better decision-making processes. A hold-up period in raw material production in one country can postpone manufacturing in another, or a regulatory restriction in one country can lead to product recalls thousands of kilometers away. While, according to IBM, 87% of chief supply chain officers say it’s complicated to foresee and proactively manage risks, AI and supply chain can become a powerful combo in predicting and identifying potential industry-related risks. AI leverages historical data to forecast future shopper demand and make sure the company has adequate inventory levels.

Cloud Platform

With over 60 patents granted and pending, we are actively advancing artificial intelligence in supply chain management. Our talent continues to lead the way in implementing AI into the world’s supply chains. When you consider that manufacturers are always looking for ways to streamline supply chain functions and increase efficiency, new solutions are needed to cope with the rising market demands. Hence, manufacturers adopt or develop their own AI solutions with advanced features such as automation to optimize supply chain management, reduce industrial waste, and create a more resilient operation.

Big firms like PepsiCo have leveraged AI to analyze what people are discussing and searching for. Based on AI insights, PepsiCo released to the market Off The Eaten Path seaweed snacks in less than one year. He completed his MSc in logistics and operations management and Bachelor’s in international business administration From Cardiff University UK.

What are the most common use cases for machine learning in logistics and supply chains?

Additionally, Generative AI models can identify the most efficient distribution and storage strategies, considering lead times, transportation costs, and demand fluctuations, thus maximizing operational efficiency and reducing costs. However, far too often we find supply chain decisions are based on stale, static data. Access to real-time, real-world data removes latency from the decision-making process and ensure the digital twin is an accurate reflection of the network. Greater visibility through improved quality drives increased accuracy of the supply chain planning model by creating a virtual supply chain blueprint that provide accurate data about the relationships between supply chain entities.

supply chain ai use cases

They’re very manageable first steps that can put companies on a path to more intelligent operations that can help them effectively compete with organizations that are currently setting the bar. To use Artificial Intelligence in logistics and supply chain management, consider integrating automated robots. Such robots will streamline product picking, unloading pallets, and even packing items.

What Technologies are Used to Implement AI in Logistics?

It applies intricate algorithms to past data, market shifts, and external factors to augment the precision of demand predictions. Process Mining is a technology that uses Artificial Intelligence (AI) to automatically track and analyze data related to business processes. It enables supply chain companies to understand their processes better and optimize them for maximum efficiency. Process Mining can also be used for forecasting, analyzing customer data, and predicting future trends. Additionally, it can be used to identify bottlenecks and weak points in the supply chain, allowing companies to make quick decisions and optimize their processes accordingly.

This unpredictable order pattern can lead to abuse and unnecessary productivity loss among your team. It is very tough to pinpoint volatile consumer behavior due to the order delay from the e-commerce retailer network. Therefore, the ability to attend to volatile order volumes is a challenge for many companies. This kind of order process can lead to abuse and productivity loss among your logistics team.

Redefining logistics: The impact of generative AI in supply chains

We researched thoroughly to craft these AI agents’ use cases explicitly tailored for SCM operations. This section will guide you through autonomous AI agents’ capabilities for seamless supply chains. While SCM and logistics management are used interchangeably, these two terms refer to different but related activities. Logistics management is one component of the supply chain that covers the movement and storage of items.


He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem’s work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

The Concept of Supply Chain Management

This so-called “bullwhip effect” has been known for decades, but now the data and technology are available to finally do something about it. Myriad use cases for supply chain analytics and AI exist, and the number continues to grow. Some are more difficult to scale than others, and the impact on key business priorities can differ across use cases. This is why companies that are looking to increase their spending on and use of these technologies should focus their initial efforts to get the biggest return on their investment. We think three use cases, in particular, make the most sense as starting points—all of which can play a significant role in helping companies maximize relevance, resilience and responsibility.

What is the most used generative AI?

  • GPT-4. GPT-4 is the most recent version of OpenAI's Large Language Model (LLM), developed after GPT-3 and GPT-3.5.
  • ChatGPT.
  • AlphaCode.
  • GitHub Copilot.
  • Bard.
  • Cohere Generate.
  • Claude.
  • Synthesia.

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How to improve supply chain with AI?

  1. Establish unified commerce via increased supply chain visibility.
  2. Collaborate on Sales & Operations Planning.
  3. Implement a SaaS System.
  4. Create flexible and open cloud architecture.
  5. Leverage AI/ML to support supply chain management.

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