AI helps create ‘anything-ready’ supply chains

What gets measured gets improved.

And when it comes to supply chain management, that old adage couldn’t be truer.

Fortunately for businesses, despite ongoing supply chain disruptions and operational uncertainties, there have never been more opportunities to move goods from point A to point B in the most efficient, fastest and safest way possible.

In an era of rapid technological advancements and unprecedented innovation, the supply chain landscape has undergone a significant transformation due to the interplay between solutions built on artificial intelligence (AI), machine learning (ML), and major advances in the accessibility and cost of computing power.

“The culmination of these three elements has revolutionized the way we think about supply chain processes, from forecasting demand to understanding customer needs at a granular level,” Parvez Musani, senior vice president, End-to-End Fulfillment, Walmart US Omni Platforms and Tech, told PYMNTS.

“The integration of AI, ML and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow and cost optimization,” Musani said.

Despite these technological advances, some elements of the supply chain have remained constant and unchanging.

“What remains the same is the importance of agility and security… and customer demands have not changed either. They want things when they want them, where they want them and how they want them,” Musani added.

And despite the propensity for unexpected events and disruptions to disrupt supply chain planning, it ultimately comes down to companies to meet their customers’ growing expectations for convenience – or see those customers turn to competitors.

Navigating the Evolution of the Modern Supply Chain

Integrating data from various sources, including IoT devices, customer interactions, weather conditions, social media trends, and macroeconomic conditions, has revolutionized contemporary supply chain management by enabling companies to improve inventory accuracy, reduce operational expenses, and accelerate network speeds, thereby improving the customer shopping experience.

“The advent of smartphones has provided us with real-time data that improves our visibility and allows us to respond proactively,” Musani said, noting that this data integration is crucial to maintaining agility and effectively responding to customer needs.

He added that he envisions the ideal supply chain as highly integrated and data-driven, where “all decision-making is automated,” with resilience and reliability at its core.

Today, that vision translates into a seamless flow of information across the supply chain, powered by real-time visibility and AI-driven decision-making. “We leverage AI to simulate potential disruptions and prepare proactive responses,” Musani said.

This proactive approach ensures Walmart is well prepared to handle disruptions, from natural disasters to sudden changes in customer behavior, and Musani stressed the importance of flexibility and agility in supply chain operations when it comes to consistently delivering on promises made to customers.

“Customers who can count on you during tough times will reward you with trust… Businesses need to be able to adapt quickly to disruptions,” he said. “Having relief points in the supply chain, such as setting up new nodes or direct inventory flows to customers, can help manage spikes in demand.”

Embracing Technology for Supply Chain Resilience

And as AI and automation become integral to supply chain operations, the nature of the supply chain function itself is evolving.

“Jobs are becoming more fulfilling and highly skilled,” Musani said. “Automation eliminates repetitive tasks, allowing workers to focus on more important tasks.”

This shift not only improves job satisfaction, but also transforms roles into meaningful careers.

Walmart’s Emergency Operations Control team, which includes representatives from across the organization, plays a critical role in disseminating information and coordinating responses. “By sharing live information and implementing actions based on our AI-driven simulations, we can effectively manage supply chain risks,” Musani said.

For supply chain leaders, Musani’s main message is clear: embrace technology. “AI and ML are transforming supply chains into technology ecosystems,” he said. “Automate decision-making, anticipate disruptions, and invest in a reliable and reconfigurable supply chain.”

As he said, “the best times are yet to come for supply chain innovation.”