In the near future, artificial intelligence (AI) should be able to identify delivery bottlenecks at an early stage. The most recent delivery problems, such as those caused by the so-called semiconductor crisis, can soon be a thing of the past.
A lot has gotten mixed up in the last few years. Our economy was designed for repeated growth. As a result, companies saved at every conceivable point. As a result, experts also perfected the just-in-time principle. With this approach, manufacturers minimize storage costs by quickly moving and reusing goods. But that will take revenge from 2020.
There are mutliple reasons for this. On the one hand there is the corona pandemic, which has forced many people into their own four walls. On the other hand, a container ship getting stuck in the Suez Canal made the situation worse. As consumers, we felt this with the longer delivery times of some products. However, a group of start-ups wants to minimize such delays in the future with the help of artificial intelligence.
Delivery bottlenecks: AI should predict potential risks
The start-ups include Interos Inc, Fero Labs and KlearNow Corp. Your goal is to predict delivery problems and bottlenecks based on available real-time data. If authorities tighten border controls or if a supplier is currently unable to deliver due to a lockdown, the AI calculates the consequences for the entire supply chain.
Let’s take Interos as an example: The company uses the data of 400 million companies worldwide and constantly evaluates their delivery situation. If a fire breaks out, a flood floods the area or you become the target of a hacker attack, the AI calculates a new score for the company in question. In this way, the companies supplied can see at an early stage whether they can continue to count on their suppliers.
By 2025, artificial intelligence will be essential in the supply chain
The potential of this software is immense. Experts expect a deal with a total volume of 20 billion US dollars. If the forecasts come true, by 2025 around 80 percent of all supply chain software products will use some form of this artificial intelligence. Such applications are already decisive for the future success of companies.
For example, Delta Air Lines uses Interos’ software to monitor 600 primary suppliers and a total of 8,000 suppliers. The demand for the tool is high, also because the Ukraine conflict has brought further problems to light. Interos is currently advising around 700 companies on the conflict, and the trend is rising.