Post-pandemic, we’ve seen that businesses are looking to regain their foothold in the marketplace. As profitability wars heat up between brands, a resilient, efficient supply chain seems to provide a definite competitive advantage. Organizations are looking for more control over the information flow, visibility, and accessibility in their supply chains to help them meet their long-term, end-to-end efficiency and profitability goals.
Across the business spectrum, AI is used by companies in a wide array of off-the-shelf and custom-built solutions to determine the optimal configuration of their supply chains.
Optimizing the products’ flow in the network and putting the right products in the right place at the right time saves transportation costs, holding costs, and out-of-stock costs. It maximizes inventory utilization, reduces waste, and guarantees a short delivery time to the customers. It creates a win-win situation for the businesses and the customers too.
How Optimization helped a Large Beverage and Snack Company Reduce Costs and Gain Visibility
Post-pandemic, a large Fortune 500 company in the Food and Beverage space was facing problems in its supply chain network. On one hand, gaps in the supply chain negatively impacted distribution – reducing the service level, increasing the product delivery time, leading to customer dissatisfaction and overall revenue loss; while on the other hand, visibility gaps in inventory management meant that products were piling up in some warehouses and could not reach customers, causing wastage.