Getting Practical with AI

AI feels a lot like magic.

A magician pulls a rabbit from an empty hat; AI transforms unstructured data into insights. But just as a magician conjures awe and confusion, AI solutions captivate yet feel elusive.

How are organizations extracting the magic of AI? Zero100 is pulling back the curtain on AI for supply chain leaders with The AI Hub, the first comprehensive repository of AI use cases in supply chain. Although only two years old, The AI Hub currently contains 600+ unique references of brands scaling AI implementations throughout their operations, uncovering the possibilities offered by this technology.

To create this resource, we scanned publicly available resources with keywords from a distinct term tree across a list of 525+ brands. Each AI case study is classified using five main attributes: Loop Function, Use Case, Company, Primary KPI Impacted, and AI Type. Additionally, we provide industry cuts and continental region cuts, plus identify best-in-class examples for each use case. Here are some sample cases from The AI Hub:

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Understanding the AI Landscape

So far, we’ve identified 75+ unique use cases from our growing library of 613 case studies and mapped them to each Loop function (Plan, Source, Make, Move, Sell, Use, and Regenerate).

Looking across The Hub, we found a few key trends and conclusions that paint a picture of the current AI landscape:

• The Make function has the most AI use cases, comprising 21% of the entire library.
• Sourcing makes up only 16% of case studies, but given the significant capital expenditure of the function, we see it as ripe for AI implementation.
• The tech industry leads the way in the number of AI use cases (79 total), with food and beverage coming in second (66 total).
• Unilever, Walmart, and Proctor & Gamble have the greatest number of AI use cases in the library (18, 15, and 13, respectively), which is a testament to their dedication to AI and their transparency when it comes to tech innovation.

Let’s zoom in on how AI is reshaping supply chain functions across The Loop.

Innovate & Plan

The most frequent use cases in Innovate & Plan live in demand forecasting (29%), replenishment and allocation (20%), and trend prediction (8%).

Fashion and apparel brands are heavily represented in our collection of planning case studies, with familiar players being Zara, H&M, and SHEIN. These fashion brands have grown their market share on business models like fast fashion, which relies heavily on AI to analyze and execute decisions based on large amounts of consumer data.

Source

Within sourcing, we’re seeing a range of use cases that include purchasing, strategic sourcing, and contract lifecycle management. Food and beverage companies are leaders in terms of AI use within this function. As the industry is so reliant on close collaboration with suppliers to build resilient food chains, PepsiCo, AB InBev, Coca-Cola, and others are specifically finding value in AI-driven sourcing tools.

Make

AI use cases in manufacturing center on product development, process optimization, and predictive maintenance. At the front of the pack here is the industry that brought us assembly lines: automotive. We’ve come a long way since the 1920s, and manufacturers like Toyota, Mercedes, and Tata Motors are now reaping efficiency gains by using AI on the shop floor.

In addition, pharmaceutical companies are using AI to streamline manufacturing or strengthen R&D efforts when going through product development.

Move

AI solutions in the Move function demonstrate a clear trend: leaders are all-in on route optimization, automated warehousing, and inventory management. And although we have use cases from top logistics firms, such as UPS and FedEx, tech companies like JD.com, Alibaba, and Amazon are showing their prowess as leaders from warehousing to the last mile.

Sell

AI has quickly become a staple when it comes to achieving more personalized sales. This explains why the majority of use cases in this function center on product recommendations, marketing insights, and price optimization.

Retail industries are leading in this function, with storefronts and sales channels doing much more with AI than powering self-checkouts. Case examples come from leading brands, such as Tesco, Target, and Walmart.

Use

AI use cases within the Use function often highlight customer service chatbots like Klarna, yet we also have discovered value to be gained from dynamic personalization and customer sentiment analysis. There is no distinct leader in this function, and cases come from brands as varied as Biogen, IKEA, and Pantaloons.

Regenerate

As supply chain leaders look for direct correlations between AI and sustainability, the Regenerate function includes use cases related to emissions tracking, energy management, and waste reduction. There isn’t a clear industry leading in this area, but some brands implementing AI within this Loop function include Unilever, Lululemon, and PepsiCo.

While these functional stories may serve as inspiration for your own supply chain, the best AI strategy is one that generates value end-to-end.

The full report shares AI developments, trends, and best practice implementations across the entirety of The Loop; unravels genAI specifically; and finishes up by outlining the how of prioritizing investments and bringing your AI strategy to life.

To access the full report, visit members.zero100.com. 

If you are not a Zero100 member, please email hello@zero100.com to inquire about membership and report access.