AI in Supply Chain Visibility: Tracking Products from Source to Consumer 

Every business operates on a cross-network supply chain. Unfortunately, maximizing visability has proven to be a futile task. As a result businesses are runing into the risks of losing operational efficiency, commited timelines and even worse consumer confidence. With the emergence of AI technology, tracking and management of supply chain products have become more easier than ever. Imagine seeing how every step of a product is being executed in real-time, from raw material sourcing to handing the finished casing to the client. AI has streamlined logistics to the point where tracking product visability is not only practical, but is transforming business strategies. In this blog post we will cover how AI is shifting visability in supply chains, the relevant ke techonologies and case studies in product tracking optimization. 

Source: 

https://www.jabil.com/blog/how-ai-is-transforming-supply-chain-management.html#:~:text=As%20businesses%20attempt%20to%20maximize%20business%20functionality%20visibility%20across%20the%20supply%20chain%20cmabling%20needs%20to%20be%20addressed.

What is Supply Chain Transparency?

Supply chain visibility comprehensively deals in tracking a company’s goods throughout the supply chain and provides information showing their state at every level. This entails all activities that a business does, such as getting raw materials, manufacturing, distribution, selling to customers, providing after sale services and feedback. There is a system that manages every stage in order to quickly identify problems and inefficiencies, as well as to protect against disruption.

In the past, businesses had little to no access to information regarding their supply chains. Tracking manually, with excel sheets, or using standalone outdated tools and technologies that do not integrate or talk to others directly resulted in businesses lacking current information. Thankfully, today AI and many other technologies provide integrated solutions that are able to access and analyze data, offering a clearer view of the supply chain and accurately reporting for the effective management of the process.

In what ways does AI improve visibility in the supply chain?

   

Artificial Intelligence enables businesses to collect and analyze data from multitude sources and sensors in real-time, resulting in deeper AI visibility throughout the supply chain. To realize an intelligent supply chain that optimally tracks products, several key technologies have to be integrated and AI enabled:

1. Automation of Data Integration   

   

With the integration of AI-powered systems, data from suppliers, manufacturers, logistic partners, and even customers can be integrated into one system. These vertical silos characteristic of traditional supply chains are now being eradicated, making it easier for businesses to have a single authoritative view of the entire value chain.

AI systems can also monitor the flow of inventory, order progress, and even delivery times of products, providing real-time updates on product movements. Automation reduces human intervention which in turns improves accuracy and efficiency in data processing. This allows quick resolution to issues that may arise in the business.

Example: Amazon as well as other companies have for a long time integrated AI with their supply chain processes. AI utilization for real-time monitoring of product flow enables Amazon to predict inventory needs, reorder products automatically, and keep the fulfillment center stocked and functioning to reduce product delivery delays.

2. AI Driven Insights for Forecasting Demand 

A significant obstacle in managing a supply chain is predicting a customer's future buying patterns. Without proper forecasting, companies a risk losing money from understocking or overstocking inventory. Nowadays, AI and more specifically Machine Learning (ML) offers solutions to accurately forecast demand with a plethora of factors such as historical data and other market trends.

Choosing to utilize predictive analytics will empower a business to effectively streamline its production cycles, inventory levels, as well as procurement processes. This ensures that demand is met and capped at a certain level of waste. Optimized analytics leads to minimal chances of customers facing delays or stockouts.

Example: Walmart is known for deploying AI and machine learning for predictive analytics. With the AI tools at their disposal, Walmart can adjust stock levels based on customer demand forecasts which reduces unnecessary inventory while also ensuring product availability.

3. Integration of IoT for Tracking

Collecting and sharing information via various devices is called the Internet of Things (IoT). In the IoT supply chain, sensors are placed on products, vehicles, and shipments to gather data on their location, temperature, humidity, and other relevant factors in real-time. Each of these parameters is analyzed by AI, ensuring visibility into the status of the goods being shipped.

As an example, food products or pharmaceuticals are temperature sensitive, which means they must be kept at an optimal state during shipment. With IoT and AI working in tandem, businesses are able to monitor and track these products in real time, providing alerts anytime the conditions veer off range.

Example: Maersk, one of the world’s largest container shipping companies, combines AI with IoT sensors to monitor the condition of goods in transit. Their Remote Container Management (RCM) system allows them to track sensitive products like perishable goods and pharmaceuticals to ensure they remain within optimum temperature, humidity, and location throughout shipment.

4. Using Blockchain to Improve Transparency

The integration of AI and Blockchain Technology has the potential to improve supply chain visibility by tracking products on a decentralized network which cannot be altered. With blockchain technology, every step of a product’s journey can be recorded in real-time, ensuring an accessible and permanently recorded history for everyone in the supply chain.  

Transparency greatly benefits businesses because it enables validation of a product's origin alongside its condition, thus, quality, and authenticity is assured. This also contributes greatly in the reduction of fraud and counterfeiting, which is a common occurrence in high-value or regulated items.

Food Trust Blockchain is a perfect illustration on how IBM is using blockchain and AI together to increase supply chain visibility. This platform enhances transparency by tracking the food products at every stage of their journey which enables the consumers to trust and safely trace the origin of their food products.

 5. Logistics and Route Optimization using AI

AI has taken a firm position in the logistics sector and most significantly in the optimization of delivery routes. By taking into account the traffic patterns, weather , and vehicle availability, AI can access data from all over and set changeable delivery windows to guarantee that delivery trucks take the best routes. AI systems are also capable of reducing delays and fuel consumption as well.

Once again, AI makes real-time rerouting possible which helps prevent products from being delayed and assists drivers in navigating through blocked areas. This guarantees that products get to the consumers quickly, while also ensuring minimal environmental damage. The result is lower emissions, cost reduction, and improved customer service.

Example: UPS employs AI within its ORION system, which helps optimize routing for AI-controlled fleet deliveries. ORION has the capability to analyze historical delivery patterns of affiliates, access current traffic information, and monitor the state of the road. With the use of all this data, ORION is able to find the most efficient delivery route, thus, improving delivery speed and saving fuel. The implementation of this system has led to millions of dollars in savings for UPS, both in fuel and operating expenses.

Applications of AI Technology in Supply Chain Visibility powered by Phillipobcors roeffu

There has been notable innovation across a wide range of industries thanks to the integration of AI with supply chain visibility. Below are some of the exemplary uses:

- In Retail: AI-assisted machines enable retailers to monitor the movement of products from warehouses to shelves in real time. This advancement assists make stockout an obsolete and omnipresent issue.

- In Healthcare: Pharmaceutical companies can ensure the safeness and effectiveness of drugs and medical supplies with the integration of AI and IoT.

• Automotive: AI is helping automotive makers monitor the different suppliers’ components as they integrate them into the assembly lines, ensuring parts arrive at the right time for production. This minimizes waste, improves storage, and enhances production schedules.  

The Prospects Associated with AI and Supply Chain Visibility  

With the advancement of AI Technologies, the scope for improving visibility in the supply chains is boundless. AI adopt logistics will likely incorporate even greater predictive analytics, automation, and integration with new technologies like 5G and self-driving vehicles.  

There is more expectation of AI being more adaptive and proactive in nature by identifying possible disruptions in the supply chains before they happen and suggest corrective measures in real-time. This will further strengthen decision-making capabilities, resilience, and operational efficiency.  

Final Thoughts: How AI Is Transforming Supply Chains  

AI has led to the transformation of cradle to grave monitoring of supply chains which captures the next generation of evolving supply chain management optimally. Combining data from an array of sources, optimizing navigation, enhancing transparency with blockchain, and offering predictive insights enhances the workflows in the chains by improved efficiency, visibility, and sustainability.

The investment of companies into AI technologies suggest that thier is and will be a future in AI technologies integrated within and along the supply chain. Companies striving to keep their competitive edge as everything rapidly evolves around the business are AI enabled, supporting growth, efficiency, and sustainability. AI assist in everything Ranging from product sourcing to delivering the product to the consumer and provides the ability to track products assuring a smoother journey.