How AI can make impact in supply chain?

P&G constantly monitors Point-of-Sale (POS) data, and is using AI agents to recognize and predict
consumption patterns of consumers. In addition, intelligent AI agents create the demand forecast
and then compare it to the actual demand in real-time. When there is significant deviation, the
agents make the decision to adjust the forecast, and additional agents adjust replenishments. They
then propagate those adjustments across the supply chain to trading partners in real time at all
times considering the cost of change and the propagation impact.

This drove a remarkable improvement in forecast accuracy. During promotions, the company
achieved over 85 percent forecast accuracy at the store level and even higher at the DC level. This
represents at least a 25 percent improvement over traditional approaches.

AI in warehousing is a very innovative idea since about 36% of the cost incurred in supply chain is
through warehousing. so, methods are being suggested to decrease this cost for making the supply
chain efficient. Through AI things are being managed in a very simple and easy way. This removes
complexity and decreases the cost of warehousing

ASRS (Automated storage and retrieval system) is the best example of warehousing AI

Following companies are using AI in their warehousing system

COCA COLA
Coca Cola’s fully automated warehouse for the EMEA region is a sophisticated facility that provides
on-site storage, thus eliminating the expensive double-handling task that bogs down logistics when
shipping stock off-site to local warehouses. Delivered by FKI Logistics, Coca Cola’s warehouse houses
25,224 pallet locations and is designed to accommodate future expansion of the factory.

IKEA
IKEA, the Swedish international home products manufacturer uses automated warehouse services to
send distribute those connect-me-if-you-can home items to locations all over the world. With
furniture that is found in so many of today’s homes, IKEA can be thought of as the leading furniture
logistics company. IKEA grossed about € 23.5 billion in 2010, and it was able to drive out significant
costs with the implementation of automated warehouse solutions.

NIKE
Nike’s “Distribuzione” is an automated warehouse for the European region that holds more than
25,000 SKUs and also where 43 million items are handles each year. The heart of the system is a 280
meter long loop sorter, which handles both automated inbound and outbound orders.

IOT( internet of things)