Many businesses struggle to optimize their supply chain management; hence, they risk falling behind competitors who can save money and streamline operations through the use of intelligent supply chains.
To stay competitive, businesses need to use new technology for smarter supply chain management. According to McKinsey(1), early adopters of AI-enabled supply-chain management have seen improvements of 15% in logistics costs, 35% in inventory levels, and 65% in service levels compared to slower-moving competitors. However, there is still a significant gap in adopting intelligent supply chains.
The Art of Smart: Understanding Supply Chain Intelligence
First, let us understand supply chain intelligence.
Supply chain intelligence involves collecting and analyzing data to gain insights into performance. By using technologies like IoT, AI, and machine learning, businesses can monitor and track operations, identify inefficiencies, and improve supply chain management.
Now, let’s explore some trends in supply chain management and how brands can leverage an intelligent supply chain system to achieve commercial and brand success.
Trimming the Fat: Reduce Excess Inventory
Excess inventory can lead to increased storage costs and a decreased return on investment. By using the predictive analytical capabilities of an intelligent supply chain system, organisations can accurately forecast demand and adjust their inventory. This allows businesses to reduce inventory costs by optimising their stock levels, minimising waste and freeing up working capital.
Keeping It Running: Optimise MRO
- Intelligent supply chain systems can help optimise Maintenance, repair, and operations (MRO) by providing real-time data on equipment and maintenance needs.
- Purpose-built technology can track the performance of equipment and predict when maintenance is necessary, reducing downtime and extending the life of machinery.
Supplier Synergy: Improve Supplier Management
- Supply chain intelligence can also help organisations manage their suppliers more effectively.
- Businesses can identify high-performing suppliers and cultivate stronger relationships by analysing supplier performance data.
- Additionally, supply chain intelligence can help organisations identify potential risks in their supply chain, such as supplier disruptions or quality issues.
The Safety Net: Mitigate Risks
- Intelligent supply chains can also help organisations mitigate risks associated with their supply chains.
- By monitoring operations in real-time and analysing historical data, businesses can identify potential risks and take steps to prevent them from occurring.
- For example, supply chain intelligence can help organisations identify suppliers in regions prone to natural disasters and take steps to ensure the continuity of supply.
Join the Revolution: Transforming Your Supply Chain with Intelligence
As supply chain intelligence continues to evolve, it will become increasingly essential for businesses to stay competitive in today’s marketplace. Plug-and-play technology is also making it easier for companies to implement supply chain intelligence solutions without extensive customisation or complex integrations.
In today’s fast-paced business world, supply chain intelligence is no longer a “nice to have” – it’s a must-have for achieving cost savings in procurement. At Moglix, we offer cutting-edge solutions to help you make sense of your data and optimise your supply chain. Download this case study to discover how we helped an automotive OEM unlock a 2% cost savings in procurement.
Contact us to learn more about how we can help you gain a competitive edge.