Skip to main content

How AI Innovation Transforms Supply Chain Planning

Business leaders that anticipate market demand opportunities or risks -- and then respond quickly in a dynamic way -- will gain a significant competitive advantage. Today, agility is a key benefit of a modern supply chain.

Global revenue from demand planning applications will generate over $8 billion by 2025, as Artificial Intelligence (AI) capabilities offered by forward-thinking IT vendors and service providers continue to improve data-driven supply chain transformation.

Supply Chain AI Market Development

According to the latest worldwide market study by ABI Research, the growing e-commerce sector and the need for supply chain AI solutions in the Asian market are also responsible for this forecasted growth.

With the volume and variety of valuable data proliferating inside and outside the typical enterprise, AI and machine learning capabilities are becoming integral to successful supply chain planning.

Only with these cognitive computing technologies can companies leverage demand sensing, which uncovers the hidden relationships between hundreds of demand drivers and their effect on actual product sales.

As AI technologies and machine learning models become increasingly sophisticated and enterprises get better at collecting complex data, demand sensing capabilities, and therefore supply chain efficiency, will improve further.

"It is becoming vital for enterprises to understand how product demand is impacted by continual shifts that occur internally in the supply chain and externally in the market," said Nick Finill, senior analyst at ABI Research.

The need for more advanced, machine learning-based demand sensing capabilities means that complex data from outside of the enterprise is very valuable. Relying exclusively on internal data, such as historical sales figures, is no longer enough in the current climate of global supply chains.

Being able to digest and analyze structured and unstructured data from the external market -- such as weather data, social media posts, and economic indicators -- will become a critical need as global supply chains transform.

Demand planning software vendors are playing a crucial role in driving innovation and a more demand-driven approach to business planning within the supply chain. Savvy vendors in this space are creating compelling products and services for companies in need of external technical expertise.

Outlook for Supply Chain AI Applications

"Forecasting demand is only half of the equation, however," said Finill. "Companies must understand how to effectively execute demand-driven planning and involve the entire business in a coordinated, holistic response that maximizes profitability for the wider enterprise."

According to the ABI assessment, companies that can make value-based operational decisions driven by reliable demand sensing capabilities will have a compelling advantage over those that can’t.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent