SupplyChainBrain, October 21, 2022, Amit Gautam, SCB Contributor
The holiday season is fast approaching. As always, supply chains will be vital in realizing the predicted $1.262 trillion in sales that sellers are anticipating for the season.
At the same time, prevailing geopolitical conditions, fuel price increases and labor shortages are all adding up to pose a constant threat. According to Statista, the U.S. faced more than 5,000 supply chain disruptions during the 2021 holiday season, which invariably impacted sales. Supply chain operators will be keen to keep disruptions in check this time around, and have a workaround to ensure uninterrupted and optimized services throughout the period.
Predicting unfavorable events is always a challenge. Still, supply chains can use automation driven by artificial intelligence to bolster efficiencies, become more resilient and meet sales targets for the holiday season. According to McKinsey, AI-powered enablement across the supply chain can improve logistics costs by 15%, inventory levels by 35% and service levels by 65%.
Automating the Backend
Supply chains are complex networks of functions that are predominantly human-driven. Whether it’s the back office generating invoices, orders and receipts, or humans trying to locate products across warehouses, automation delivers higher levels of efficiency. At a time when one-day delivery has become a mandate, agility must be embraced in every facet of supply chain operations.