CARGOCONNECT-OCTOBER2024 - Flipbook - Page 46
FEATURE : INTELLIGENT SUPPLY CHAIN
strategically plan their inventory distribution across
regions to manage demand variability e昀昀ectively.
Here, AI becomes indispensable, providing rapid
demand forecasting that outpaces traditional human
methods. This capability substantially enhances
picking e昀케ciency within warehouses and o昀昀ers clear
visibility into manpower productivity, ensuring that
resources are optimally allocated.”
Kaushik further explained, “For example, if the
workload surges from 400 to 700 or 800 orders
per man-hour, AI-driven insights become critical
in guiding manpower allocation and re昀椀ning order
processing strategies. This seamless coordination
between inventory planners and warehouse managers
optimises the entire order ful昀椀lment process, from
order creation to delivery. AI’s role in this ecosystem
is becoming increasingly pronounced, particularly
as customer expectations evolve towards faster
deliveries, such as the 10-minute delivery model.
Failing to meet these expectations can result in
high rates of return-to-origin (RTO) logistics, which
underscores the importance of adapting our delivery
and distribution models accordingly.”
Addressing the broader implications of AI in supply
chain management, Kaushik noted, “The evolving
landscape of AI re昀氀ects the growing complexity of
meeting customer demands. As the bar for delivery
times continues to rise, the pressure on supply chains
to adapt is immense. It’s not just about ful昀椀ling orders
quickly but doing so in a way that mitigates the
losses associated with reverse logistics. AI provides
the tools necessary to anticipate these challenges,
allowing companies to maintain customer satisfaction while minimising the 昀椀nancial impact of RTOs.
This integration of AI into the supply chain is no
longer optional—it’s a critical component of staying
competitive in today’s market.”
Empowering
Supply Chains
through Digital
Transformation
* Increased Efficiency and
Productivity: One of the
most significant benefits of
technology in the supply chain
is the increase in e昀케ciency and
productivity. Automation tools
like Robotic Process Automation
(RPA) and AI-driven systems
can handle repetitive tasks with
greater speed and accuracy,
freeing up human resources
for more strategic activities.
For example, automated warehouses equipped with robotics
can process orders faster and
with fewer errors, reducing lead
times and enhancing customer
satisfaction.
* Enhanced Visibility and
Transparency: Technologies like IoT and Blockchain
provide real-time visibility
into the supply chain, allowing
businesses to track the movement of goods at every stage.
This level of transparency is
crucial for maintaining trust
with customers and partners,
as it ensures accountability
and traceability. For instance,
Leveraging technology is
indispensable. It provides the
necessary agility and visibility
across the supply chain, enabling
swift decision-making and
customisation to meet evolving
consumer demands. In today’s
rapidly changing landscape,
where consumer expectations are
constantly shifting, having the
right technology in place allows
businesses to stay ahead of the
curve, responding promptly to
market needs. As a business
leader navigating the fast-paced
e-commerce supply chain
environment, focussing on these
aspects ensures resilience and
competitiveness in meeting current
and future challenges effectively.
Technology empowers us to optimise
operations, reduce inefficiencies,
and enhance our ability to adapt
to specific consumer preferences.
This proactive approach is essential
for sustaining long-term success
in a dynamic and increasingly
competitive market.
HIMANSHU MALOO
VP–Supply Chain Planning and
Logistics, Diageo
46 | CARGOCONNECT OCTOBER 2024
