Artificial intelligence is having a moment. From Open AI’s ChatGPT to Google Bard and even the redesigned Bing, folks have been obsessed with testing computing’s power to replace human thought in news stories, term papers, technical advice and more.
Which got us wondering: Might AI have any insights about supply chain. So, we asked ChatGPT:
What strategies can companies use to save on supply chain costs in 2023?
To be honest, the bullet-point list of supply chain strategy suggestions that everyone’s favorite chatbot typed back at us is pretty insightful for a machine. Some of the ideas match what we advocate in our own practice:
Inventory optimization: Maintaining the right level of inventory can be challenging. By using data and analytics to optimize inventory levels, companies can reduce the cost of carrying excess inventory while also avoiding stockouts.
Morgan helps accelerate your inventory utilization in a number of ways. We pioneered outsourced inventory ownership with the Inventory On Demand™ service, and we have other supply chain finance tools available so that inventory cost doesn’t. Inventory costs should never keep you from making the best transportation and distribution decisions.
Supplier relationship management: Building strong, long-term relationships with suppliers can lead to cost savings.
We started our practice more than 30 years ago filling the gaps in multi-partner, outsourced manufacturing supply chains. It’s safe to say we’re experts in whole-process management. You’ll never have a process that’s efficient from end-to-end if you don’t synchronize the partner base.
Automation: Automating manual processes can reduce errors and increase efficiency, leading to cost savings.
Our ChronosCloud and FlexShip technology bring visibility and integration to your entire transportation network. So, you can manage movements more effectively, accelerate revenue recognition and even automate freight payment.
Green supply chain: Implementing sustainable and environmentally friendly practices in the supply chain can lead to cost savings through reduced waste, improved energy efficiency and reduced environmental impact.
Sustainability isn’t just about doing what’s right; it’s also doing what’s best for the bottom line. When you maximize loads, fill backhauls and shift to less carbon-intensive modes of transport, the result is lower cost.
Transportation optimization: Optimizing transportation routes and modes can lead to reduced transportation costs. This can include utilizing multimodal transportation, consolidating shipments and using technology to optimize routes.
Seriously, ChatGPT, have you been looking at our website? We call this the custom-tailored transportation network, and it’s the heart of our offerings. Instead of just relying on fixed schedules from carriers and integrators, we design, operate and manage supply chain networks that meet the exact needs of our manufacturing clients (including two of Gartner’s Supply Chain Top 10 global enterprises).
By assessing customer needs and analyzing operations data, we can leverage existing suppliers, supplement transportation with our own partners and even design all-new, purpose-built segments.
Our custom-tailored control-tower services bring the whole system together, combining the best of technology and human expertise.
ChatGPT sums up its A+ AI essay in a way with which we couldn’t agree more:
It is important to note that the specific cost-saving supply chain strategies that will be most effective for a company will depend on their specific supply chain, and it may be helpful to work with a supply chain consultant to determine the best course of action.
Supply chains are like fingerprints: No two are alike. While there are shared patterns and similarities, they each require their own individual supply chain strategy. No chatbot is going to help you solve that, but Morgan can. If you’re ready to put some authentic, industry-leading intelligence to work in your supply chain, let us know. Our team is ready to help you reach a new level of efficiency in your operation.
