Supply chain management serves as the lifeblood of our economy. It ensures the right things are available at the right time and in the right place without spending much. To achieve it, we rely on the ability to gain real-time insights from data and it enables informed decision-making. This is where the synergistic integration of AI (Artificial Intelligence) and IoT (Internet of Things) takes center stage.
Imagine these technologies as superheroes for businesses. They can watch over products as they move around and even predict problems before they happen. They can also help us plan better so we don’t run out of things or have too much of anything.
The pressing challenge lies in climate change, which causes extreme weather and supply chain disruptions, potentially costing businesses up to $120 billion by 2026. To prepare, companies are utilizing AI and IoT for data-driven risk assessment and collaborating closely with supply chain partners to ensure smooth operations.
Furthermore, there is a growing emphasis on adopting eco-friendly practices. We are shifting away from a disposable economy towards one that prioritizes reusing and recycling. Take, for instance, the emergence of alliances promoting environmentally-friendly biofuels. Similarly, inspired by practices in industries like sugarcane, where every part of the plant is used, companies are leveraging data and technology to minimize waste and enhance sustainability.
In short, AI and IoT are essential tools that enable businesses to ensure the uninterrupted flow of supply chains despite climate change disruptions. Simultaneously, they support eco-friendly practices and simultaneously reduce waste as well as promoting sustainability. The two technologies are valuable allies for both commerce and the environment.