4flow trend monitor - September 28, 2023

Artificial intelligence – applied today, established for tomorrow

Part 6 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Affected Industries: All industries (B2B and B2C)

Affected supply chain segments: All segments, especially those with an emphasis on data and transaction-heavy processes

What is the significance of AI for supply chain?

Hardly any technology has found so many areas of application in recent years as artificial intelligence. AI offers support to solve problems like big data analysis or image and language recognition that are difficult to handle with traditional technologies. AI is already in use in over 20% of logistics businesses and is a strategic priority for many more. It seemed the hype around AI had reached its peak in 2018 – but recent developments in generative AI make clear that the potential for these technologies is far from exhausted.

Why should my business consider implementing AI in supply chain?

AI offers various opportunities to make logistics processes more efficient and resilient. With its ability to recognize patterns in large amounts of data, artificial intelligence can make valuable predictions about demand and utilization, for example, or enable smart automation of workflows with robotics. Despite the multitude of promising areas of application, most businesses have not yet implemented AI – so a strategic use of AI can unlock significant cost reduction and efficiency improvements, as well as a competitive advantage.

Getting ahead of the trend

The full potential of AI in supply chains has not yet been achieved. There are many useful market-ready tools that can be integrated in your business ecosystem. Find out where the greatest potential for AI lies and invest in technologies that provide the most long-term value.

4flow trend monitor of digital transformation

With the fourth industrial revolution, digital connectivity plays an ever more important role in the working world. Innovative new technologies will have long-lasting effects on the way business is done. As rapid digital developments make new products, strategies and best practices available, businesses need to know where to focus their resources – and when to do it.

Have you read the rest of this series?

Digital supply chain solutions are here and are already helping businesses get ahead of the competition

Part 1 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Connectivity – cloud and APIs generate value by communicating and computing processes

Part 2 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Digital twins – a virtual world for experimental optimization

Part 3 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Robotics – tangible technological advancement

Part 4 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Automated end-to-end fulfillment – supply chains with minimal human involvement

Part 5 of 6 in the series on digital transformation in supply chain – part of the 4flow trend monitor

Holger Clasing

Head of Strategy Practice at
4flow consulting

Wendelin Gross

Head of
4flow research

Macroeconomics – market shifts mean new risks and opportunities for the supply chain industry

Series on macroeconomics – part of the 4flow trend monitor

Supply chains with a strategic, long-term approach are better prepared to react with agility in an uncertain future

4flow trend monitor series on sustainability and resilience in supply chain