This AI Index Report, featuring supply chain and procurement expert Joanna Martinez, an Acceleration Economy practitioner analyst, provides insight into ways that generative AI (GenAI) can be used in supply chains.
Highlights
00:23 — Following a recent analysis on GenAI in supply chains, I’m looking to share real-life use cases to help you learn from others who might be further ahead in this area. It’s helpful to remember that traditional AI is rule-based, analyzing data and identifying patterns using instructions and rules created by human experts. GenAI uses data as a starting point as well but it generates new content that resembles human-created content.
01:04 — In predictive maintenance, AI can detect irregularities. But if there’s something that hasn’t occurred before, you’d need GenAI to identify the potential issue if it wasn’t in the original training dataset.
01:32 — As businesses strive to make supply chain improvements, GenAI can help by creating digital twins of complex systems, which then allow engineers and other professionals to test potential outcomes, downstream relationships, and more. Maersk Shipping Lines uses GenAI to develop digital twins of its global supply chain that are used to predict the outcomes of various logistics strategies under different conditions; the company also uses it to optimize container loading, scheduling, and route planning.
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03:28 — Walmart uses GenAI to analyze customer behavior during Black Friday events and help its supply chain team get the right product to the right outlets. Walmart has been using a bot from Pactum AI to negotiate deals with selected suppliers generating savings of around 3%.
04:21 — Supply chain pros have benefited mightily from traditional AI but now GenAI offers the opportunity to take almost every step and get a better result. Examples of its use abound, from Unilever optimizing manufacturing and distribution to Siemens using GenAI to ensure an ethical supplier base. GenAI is shaking up supply chains in a good way.
