How AI is Bringing In Waves Of Change In Supply Chain Management?

How AI is Bringing In Waves Of Change In Supply Chain Management?
In general, Artificial Intelligence (AI) is the ability of computers and robots to replicate human intelligence with tools such as Natural Languahe Processing (NLP), Machine Learning and Speech & Vision recognition. AI has found relevance in supply chain management as well, by predicting weather patterns, transportation bottlenecks etc and thus improving fleet efficiency, inventory management. With supplier diversity becoming as important as ESG, AI can help companies by not only identifying them but also evaluating their offers and selecting the best in an unbiased manner. CG Global Management’s data-driven and AI powered solutions help companies in not only meeting supplier diversity goals but also optimize costs.

Benefits Of Implementing AI-Based Solutions In Supply Chain

By predicting demand of inputs, inventory management, dynamic logistic management, AI will play a very crucial role in each and every stage of supply chain management. According to a McKinsey Worldwide survey, supply chain is one of the top 3 processes that will benefit from implementation of AI. CG Global Management’s DivedIn tool gives access to companies with robust AI driven supply chain solutions with the added benefit of supporting supplier diversity initiatives. This helps companies with strong supply chain infrastructure and also adds value by meeting supplier diversity and inclusion goals. Below are some more benefits of AI in Supply Chain Management:

Proper Planning And Scheduling Activities – Supply chain managers have to work meticulously to maintain end-to-end supply to maintain continuity of production. AI integration supply chain results in accurate forecasts and responsiveness to any changes in different stages of scheduled activities.

Smart Decision Making – Companies have to increase capacity to meet demand and stay ahead of the competition. Al guides supply chain optimization with demand forecasting, data analytics, predictive analytics, etc  to make critical decisions for business expansion. These data-backed decisions help manufacturers in reducing costs and improving customer experience.

Warehouse Efficiency – AI uses data backed algorithms to forecast many activities. They support the management of equipment, raw material, employees and create a friction-less environment for different stages of the production process.

Enhances Safety – AI tools always gives efficient and smart predictions, automatically enhancing manpower and product safety. AI analyzes the weather patterns and gives alerts on re-routing of shipments thus reducing delays and incidents. The fleet efficiency also increases due to the safe transit routes created by AI .

Inventory And Demand Management –  It has been observed that AI solves many material management issues faster and more accurately than humans. By predicting future state it makes inventory management more dynamic and resilient. By helping in maintaining sufficient stock, AI saving valuable time and improves efficiency in the entire supply chain management process.

Other Areas where AI helps In Supply Chain Process

  • AI helps to optimize supply chain activities to make organizations more resilient and productive.
  • AI also helps in creating the best logistic routes to minimize gas/fuel consumption and improve safety.
  • AI can be used for accurate demand forecasting, which result in maintaining required inventory levels.
  • AI can help companies improve logistical and inventory overheads and help in increasing the bottomline.
  • AI backed systems and Sustainability applications can help automate and improve the quality and sustainability of end products.

Components of an Effective Supply Chain

An effective supply chain management is essential for large or small businesses. A well-managed supply chain helps in creating a dynamic and efficient process in meeting customers’ requirements in the present competitive market. Implementing AI helps bring enhancements in supply chain management in every supply chain stages effectively.

Planning – Planning ahead is a key driver for any business. And AI’s predictive capabilities analyzes trends and creates an effective and reliable plan to meet customer expectations.

Sourcing – Selecting an appropriate and consistent source is one of the biggest challenges for a successful business. AI helps a lot in making quick research of a reliable supply source to bring the plan to a successful outcome.

Production – The production should always be continuous and effective supply chain management always ensures the supply of raw material. AI is useful in understanding the production requirements based on the organization’s goals and creating a cohesive environment between different stages of production.

Delivery – Logistics planning involves delivery of raw materials on time for the production to continue without any hiccups. It also involves in providing the end product to the customers to meet their expectations which is a very complicated process. AI helps make the process simple by processing customer orders, estimating supply requirements, scheduling delivery, dispatching stock and reaching customers.


CG Global Management has always embarked on creating new thresholds and benchmarks to support organizations in achieving their goals. Its cloud based, data-driven AI-powered solutions have guided organizations meet their Supplier Diversity and Local Content (Buy America) Compliance goals. After adopting and integrating AI in the supply chain processes many companies have achieved success and competitive edge. CG Global Management’s Supplier Diversity Data Analytic Solutions uses a data-driven methodology to help businesses effectively meeting their ESG, Supplier Diversity and Local Content compliance objectives.
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