Capturing value through optimization, transformation, and predictive capabilities
As the hype around Generative AI (GenAI) moves into supply chain management, it is critical for business leaders to separate fact from fiction. AI is not new to supply chain management; many advanced companies have benefited from traditional AI tools and machine learning models in managing transactional work—from invoice processing to shipment tracking to workflow management.
Enter GenAI, the disruptor with the potential to reshape supply chain management by transcending the limitations of traditional AI and machine learning capabilities.
How? By harnessing GenAI's ability to navigate vast amounts of unstructured data, businesses can gain a competitive edge in at least five ways, including:
- securing better pricing and improving quality, leading to increased profitability
- identifying new suppliers
- developing early-warning systems to identify suppliers at risk
- forecasting cash flow risks
- managing inbound logistics more efficiently
GenAI has the potential to create a profound impact by driving tangible results and reshaping industry norms—opportunities we outline in greater detail in our report (click here to read and download the full text).
Yet GenAI isn't a plug-and-play solution. It demands strategic alignment, skill development, and robust data foundations. Overcoming challenges like use case selection and stakeholder engagement is crucial to unleashing its full potential, presenting a powerful opportunity for business leaders to drive innovation. It also needs to be integrated with existing supply-chain capabilities, many of which are driven by machine learning, such as the AlixPartners Global Trade Optimizer, which allows companies to monitor the price and availability of hundreds of thousands of components and commodities worldwide.
GenAI is not just a tool but could be the future of supply chain management, offering transformative potential for those ready to seize it. By integrating human expertise with GenAI's capabilities, businesses can navigate the complexities of modern supply chains with unprecedented precision and drive sustainable growth in an ever-evolving landscape.
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