Demand planning and scenario mapping
The beauty of AI is that it can show clear patterns in consumption habits and even predict seasonal demand, which could help prevent overstocking unnecessary items. That will save you quite a bit of money in having to store excess stock in warehouses and losing money on stock that doesn’t get sold.
Given how volatile the economy is, coupled with rising inflation and the cost of living crisis across the US, demand planning and scenario mapping are more important than ever if you want to build a more efficient, reliable and resilient supply chain. This isn’t just lip service; it’s a fact. According to McKinsey, we can expect a disruption to the supply chain lasting more than one month every 3.7 years.
Network optimization
Machine learning and AI can give you insight into where exactly to store your inventory so you can increase the speed of your delivery without increasing final mile delivery costs.
On-time delivery predictions
One of the biggest complaints customers have when buying products online is the delivery service. Deliveries go to the wrong address. Wrong items get shipped. Items are either damaged or broken completely. None of these problems are ideal and can make customers feel more than frustrated with a business. If delivery problems happen frequently with the same business and show no signs of improvement, you can bet a customer will ditch that business and buy from another one.
AI can help your business get in front of a possibly delayed shipment so you can let your customer know. Don’t underestimate the value of on-time deliveries - it can have a real effect on your customers’ loyalty.