High-growth supply chain businesses are outpacing their competitors in the adoption of Artificial Intelligence (AI) and Machine Learning, a recent study by Epicor has revealed.
The 2024 Agility Index research study, conducted in collaboration with Nucleus Research, found that nearly half of surveyed companies in the make, move, and sell industries are concerned about escalating costs as the biggest challenge facing their supply chains. To address these challenges, over half of the companies are utilizing AI, automation, or Machine Learning for at least one supply chain management application.
Interestingly, the study highlighted that a higher percentage of high-growth businesses, defined as those experiencing revenue growth of 20% or more over the past three years, have already integrated generative AI into their supply chain operations. This integration aims to manage costs and operational challenges effectively.
More than 1,700 supply chain management leaders worldwide were surveyed by Nucleus Research to understand the use of AI and Machine Learning in navigating challenges such as supply chain disruptions, rising costs, and skilled labor shortages. The findings revealed a shift towards investing in these powerful technologies to drive efficiency, productivity, and cost savings.
According to Vaibhav Vohra, Chief Product and Technology Officer at Epicor, empowering workers to focus on innovation leads to real value creation and agility within supply chain businesses. The study emphasized the importance of AI and automation technologies in enabling businesses to thrive, compete, and adapt to changing market conditions.
Generative AI is being integrated into various digital supply chain operations, with customer service chatbots being the most prevalent use case, cited by 72% of organizations. Other common applications include crafting product descriptions (67%), inventory optimization (45%), and demand forecasting (40%).
The implementation of AI and Machine Learning technologies is expected to drive improvements in supply chain management, with a focus on increased efficiency, productivity, cost savings, and enhanced automation. Businesses are leveraging these technologies to streamline operations, analyze customer sentiment, forecast market demand, and optimize inventory levels effectively.
Overall, the study highlights the growing importance of AI and Machine Learning in transforming supply chain operations, enabling businesses to stay competitive, resilient, and agile in the face of evolving challenges and market dynamics.
