One of the main reasons for the increase in product costs is the inefficiency in supply chain management. Regarding this issue, artificial intelligence (AI) can help predict when more goods are needed and ensure they are delivered at the right time and place.
Along with that, autonomous vehicles can transport goods and people faster and cheaper by minimizing human error and increasing the number of drivers. These technologies can make the supply chain more efficient, helping to reduce sky-high prices.
The power of AI in supply chain optimization
AI has reshaped supply chain management, bringing deep efficiency and reducing costs. AI-powered supply chains can improve logistics costs by up to 15%, reduce inventory by 35% and enhance service level by up to 65%.
One of the important capabilities of AI is detailed demand forecasting. Instead of relying on historical and intuitive human data, AI analyzes complex combinations of data flows such as real-time market conditions, consumer behavior, social media trends and historical sales data. This allows demand prediction with high accuracy.
Fashion retailers can use AI to analyze different data sources and predict future product demand.
Improved demand forecasting helps companies adjust production plans, reduce excess inventories and reduce costs by up to 30%. This prevents loss of revenue due to excessive discounts and reduces production costs.
AI also helps companies plan production and procurement more accurately, optimizing human resource levels based on predictable needs. These capabilities ensure that companies can operate efficiently and save costs.
Reduce transportation costs via autonomous vehicles
Self-driving cars are a game-changer in the transportation and logistics sector, especially in reducing labor and operation costs. Self-driving cars not only reduce labor costs but also optimize the entire logistics chain, helping products reach consumers faster and cheaper.
A prime example is Kodiak Robotics, a pioneer in autonomous road transport. Kodiak has coordinated with Boston Consulting Group (BCG) to identify optimal routes, helping to reduce total cost of ownership (TCO) by more than 30%. Self-driving trucks can operate continuously without requiring the driver to rest, thereby doubling the use of vehicles and improving productivity.
Self-driving cars can also operate effectively on long routes, helping to reduce transportation costs and improve the reliability of delivery. The vehicle division technique, where many trucks run close together at optimal speeds, helps reduce aerodynamic resistance, improve fuel efficiency and increase safety. The team division has been shown to help reduce fuel consumption by up to 10%, saving significant costs for logistics companies.
