How to solve supply chain problems? Logistics experts think of the latest artificial intelligence technology. At present, the use of chatbots in the workplace has become the focus of global attention and sparked a rush of competition. Experts wondered if the technology could help them better optimize their supply chains.
Large software providers, such as Blue Yonder Group, SAP SE, and Manhattan United, are conducting research projects that look at how generating artificial intelligence (AIGC) technology can help improve detail in forecasting, purchasing, inventory management, and even transportation decisions.
Blue Yonder, based in Scottsdale, Arizona, is developing a tool for retailer, manufacturer and logistics provider customers to use when considering delivery options. "Suddenly you have a super-smart supply chain analyst who can reason," said Duncan Angove, the company's chief executive. Eventually, he says, the tool will be able to answer the question: "Which scheme makes the most money? Which solution will make my three most important clients the most satisfied?"
Helping solve the practical problems behind logistics operations would mark a step forward in AI development. Previously, OpenAI-owned ChatGPT garnered a lot of attention by generating realistic content, from songwriting to news reports. But in the logistics industry, experts are using chatbot technology more for its ability to digest huge amounts of data and provide clear, useful conclusions.
SAP of Germany is one of the world's largest enterprise resource planning software providers. David Vallejo, the company's global head of supply chain planning, manufacturing and logistics, said: "Traditional AI is about squeezing information, squeezing a lot of numbers into fewer numbers. But it still takes a brain to process the numbers." "Now the technology has taken it one step further." For example, chatbots can tell companies how to plan their inventory in simple language, he said.
Still, some experts warn that relying on programs like ChatGPT to carry out critical tasks in supply chain planning faces huge challenges. The technology sometimes responds inaccurately based on the information it has been trained to learn.
Marko Pukkia, an analyst at market research firm Gartner, said some companies are planning for a future where they can ask chatbots how to fill large orders, which can list the cheapest and fastest options. But he admits: "This vision of the future is many years away."
Food and beverage giant Nestle (NestleSA) said it was considering how to use AIGCs in its operations, but was evaluating their safety.
Manhattan United, headquartered in Atlanta, focuses on providing software that helps companies manage their transportation and warehousing operations. Sanjeev Siotia, the company's chief technology officer, revealed that ChatGPT and similar technologies are being trialed for customers, and that these tools could one day allow supply chain managers to simply ask "where's what?" "And get clear answers quickly.
The chatbot ChatGPT itself also supports potential applications of AIGC technology in the supply chain, although it itself shows that the technology still needs to be developed.
"Chatbots could be an integral link in supply chain communication," ChatGPT wrote when asked about its possibilities. "But like any innovative solution, it has its own set of challenges to address."