Disruptions call for a new approach to supply chain planning

In today's fast-paced and complex supply chain landscape, traditional planning doesn’t cut it anymore. 10-year-old planning software wasn’t built for a stressed supply chain, whether it was from Covid-19 or ripped from today’s headlines: rebels attacking cargo ships, low water at the Panama Canal, UAW strikes, and chronic worker slowdowns at ports.

Supply chains must meet the challenges from a web of global disruptions. The goal is to be proactive in averting disruptions and craft strategic responses in advance. It's more like chess, thinking moves ahead. Being able to predict is enabled with AI. Any planning effort is elevated with AI algorithms, from robust scenario planning that improves forecasting accuracy to digital twins that create virtual models for testing and iteration on a multitude of supply routes and logistic moves.

Planning and AI combine the best in traditional supply chain planning with a suite of AI algorithms. AI planning enables you to carry out robust scenarios, build demand plan forecasts with greater accuracy, as well as develop contingency plans that can anticipate potential disruptions and craft strategic responses in advance.

AI planning enables supply chains to:

• Be proactive, anticipate, and make informed decisions quickly
• Create virtual models to simulate and test strategies before implementation
• Automate production and inventory processes, enhance collaboration, and drive operational efficiencies 

Benefits of applying AI planning to the supply chain include the following:

Planning

Imagine AI algorithms trained to discover correlations between your shipments and market behavior for predicting orders. Market behavior disruptions and bottlenecks would be factored into planning.

Scheduling

When unexpected equipment failures occur, GenAI can automatically communicate next steps. It makes it easier and faster to update scheduling.

Forecasting

Forecasting benefits from AI that enables transparency into supplier production, current consumption patterns, and evolving customer expectations. The result is more accurate forecasts.

Logistics

AI algorithms can determine optimal shipping to minimize costs and help ensure delivery. Adverse events can disrupt suppliers and routes. AI makes it possible to be proactive.

Back Office

AI planning promotes operational workflows, visibility, and flow of real-time information. Faster decision-making and automated processes mean you can better embrace constant change.