AI & Blockchain to change the dynamics of the logistics sector for driving supply-chain efficiencies in a post-pandemic world

This COVID-19 pandemic proved to the world that the Supply chain is the differentiator and the one which creates value for any company. The world has been shaken by the supply and demand shock that was created by the rush of COVID spread across the countries.

Making their supply chain more resilient without compromising on their competitiveness is the biggest challenge for the companies. This is where the current supply chain has to become more adaptive and reactive to the conditions.

The revolution of AI and Blockchain that was slowly edging the supply chain now has become a full-blown transformation. With limited human resources and disruption in networks, it has become highly vital to integrate AI and blockchain into the supply chain network which will help not only to drive efficiency but also to track the sourcing and movement of products across the chain.

Artificial Intelligence systems are known for their adapting skillset which is attained by analyzing it’s previous actions. In terms of the supply chain, the latest term that’s been around is the use case of Anticipatory logistics with the help of AI. For example. A company that can analyze the data from browsing behavior, purchase history, and demographic norms to generic data such as weather data, of a customer to give a wholesome view of what the customer might purchase.

This in turn helps companies by forecasting demand and shortening delivery time by moving such products closer to the location which would without this technology have been unforeseen and unanticipated. This requires inventory that has not yet been purchased to move along the supply chain to allow for meeting the expected delivery needs of the consumers. Customers can also leverage the benefits of a firm using AI in its chain. 

Blockchain applications go far beyond just cryptocurrency and bitcoin. With its ability to create more transparency while saving businesses time and money, the technology has a wider use case depending upon the way we use it. It is increasingly finding usage in various supply chain networks across industries.

A similar collaboration was carried out between Walmart and IBM. In the case of Walmart, the blockchain system is used to record the temperature that is present in the transportation unit which helped the company in both controlling and assuring quality and food condition more efficiently.

There was a gap in their lack of transparency of the food supply chain especially tracking their source of origin and the expiry of usage. This blockchain system not only enhances their supply chain but also helps customers receive fresher food thereby reducing cases of food poisoning and related illnesses. 

Final Take

In India, we can already see companies shifting to the usage of blockchain and AI especially in the case of the Fintech industry where security, transparency, and faster processing play an important role in the customer experience. So, with changing times Supply chain also needs to adapt to these new rules and regulations shaped by the specific features of these emergent technologies, and new regulations should be created for addressing the situations that may arise.

Understanding and having the inherent knowledge about the usage of Blockchain and AI is also necessary as it’s a new concept, to begin with especially in the supply chain. These emerging new technologies are bound to not only change the mode of operation of modern supply chains through enhanced data collection and information sharing but also deepen the analysis between collaborating supply chain stakeholders.

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