At a global level, it can analyse a vast number of variables, including differing tariffs, customs regulations, trade agreements, container availability and shipping costs, to propose the most efficient and cost-effective trade routes and strategies.
GenAI can ease logistics pain
Closer to home, logistics network design is another area of opportunity. GenAI can optimise networks by taking into consideration multiple factors such as warehouse locations, transport links and demand patterns to generate the most efficient configuration. This leads to faster delivery times, lower costs, and improved service levels.
Taking it one step further, the technology can be used for dynamic last mile route optimisation. GenAI can continually update, and revise delivery or pickup routes and schedules based on changing factors such as traffic conditions, weather, and the order of priority of deliveries. This can deliver increased efficiency, fuel savings and improved customer satisfaction.
Need to take a measured approach
Organisations, however, need to be aware of the limitations and risks associated with the use of GenAI in supply chains. GenAI tools are only as good as their input data and rushed implementations can result in poor and indeed damaging results. The quality and availability of data from supply chain partners is also of critical importance and organisations must take all possible steps to ensure it meets the required standard. It is, therefore, better to take a measured and considered approach to the implementation of GenAI tools in the supply chain rather than rush into something out of fear of being left behind by competitors.