Data Insight February 2, 2024

GenAI Is Everywhere…including All Supply Chain Functions  

Our data and analysis show examples of GenAI being used across the entire supply/demand chain. As AI pioneers continue to unlock value from various initiatives, learning from these leaders is key to seizing the opportunity for positive returns.

Strategy
Jalen Thibou Avatar
Jalen Thibou

Key Takeaways

  1. 1

    In our initial analysis of AI use cases within supply chain functions (and across 500+ brands), we found 19% fell under the category of generative AI (GenAI). As a result of GenAI implementation, companies saw cost savings and productivity spikes.

  2. 2

    Within our supply chain loop (illustrated below), Sell has the most AI use cases (30), and includes initiatives like customer journey optimization, product placement, and marketing insights. This builds on our research which shows that digital demand signals are 5x more dense than digital supply signals.

Coming off a hot year in 2023, artificial intelligence (AI) strategy will continue to be a top priority for supply chain leaders as they attempt to capture value from this new tech boom. With investments in the technology rising, CEOs better detailing AI in their strategy, and countless estimates on AI market growth, supply chain leaders wanting to move fast to adopt winning strategies are looking to learn from those leading the way forward on implementation.  

Zero100 is now in year two of building an AI use case library, which illustrates the landscape of AI in supply chain. Our AI use case library brings together strategies and examples from AI leaders and currently holds nearly 450 live AI implementations and counting. They are intended to allow leaders to keep up with the pace of AI innovation alongside the work of daily operations.

The most common AI tools we are seeing are machine learning, deep learning, generative AI, and machine vision, among others. If we take a closer look at how that breaks down, you might be surprised to see that 19% of our AI use case library contains the use of GenAI – and they are found on every function of the Zero100 Loop.

ring chart showing GenAI use cases in Zero100 case library and breakdown of those GenAI use cases across supply chain functions. 
Source: Zero100

Examples of the use of GenAI across supply chain functions include: 

[Insert Brand Name Here]GPT: 

  • Companies like Alibaba, Samsung, and Bayer, who are building their own LLMs that serve as a tool for internal data governance and seeing an increase in employee productivity.

Procurement Chatbots: 

  • Both Walmart and Tesco are using  GenAI chatbots that can directly negotiate with suppliers or serve as a personal assistant, helping to develop supply strategy and achieve cost savings on contracts.

Customer Journey Optimization: 

  • Colgate sells thousands of SKUs across hundreds of platforms. To ensure conversion rates increase, they use GenAI and ML to optimize product descriptions at each cross section while reducing labor costs.

Social Campaigns: 

  • Brands like Diageo and Coca-Cola have turned to GenAI as an agile alternative that could halve the price of increasing ad impressions as GenAI supports imaging and design for digital marketing campaigns.

It's early in 2024 and, like some of our other predictions around AI, the business case for GenAI looks to increase, making capitalizing on this opportunity a top-of-mind consideration. And after building a collective view on how supply chains are utilizing GenAI, we’ve recorded 23 different areas like the ones above that don't include chatbots or GPT-like tools. But progressing here begins with knowing where you are right now. To that end, Zero100’s AI use case library is helping members benchmark their AI maturity, build a roadmap, and determine the next steps in their AI strategy for 2024 and beyond. In addition to the library, we have launched a new AI blueprint tool for members to measure initiatives and support initial steps in building a roadmap.

Please reach out to your Zero100 Engagement Director if you’d like more information or to get started on your AI journey with us.  

Methodology 

Zero100’s proprietary data and analytics are a combined effort between our data scientists and research analysts. We provide data-first insights matched with our own research-backed points of view and bring this analysis to life via real-world case examples being led by supply chain practitioners today.   

For this study, we analyzed 542 supply chain organizations across APAC, NA, LATAM, and EMEA, looking at publicly available mentions of AI usage.