When war, pandemics, or other disruptions hit, companies must pivot quickly to avoid supply chain disruptions. With hundreds to thousands of suppliers to manage, it can be challenging for large corporations to manage supply chain risk and keep up with the latest information to identify new sources of supply when needed.
However, recently, some of the world’s largest corporations, including MN8 Energy (Goldman Sachs Renewable), Antolin, Siemens, Maersk, and Unilever, have turned to AI to help automate many of the tasks involved in supplier management. This has helped them navigate an increasingly complex supplier landscape.
How AI helps manage supply chain risk in times of crisis
From identifying new suppliers to negotiating contracts to monitoring for potential disruptions, AI has proven effective in giving companies the confidence that only a resilient supply chain can provide.
Here are a few specific ways that AI can be used to improve supply chain management in times of crisis:
- Identifying new suppliers: AI can be used to search for and identify new suppliers that meet a company's specific needs. This can be a daunting task to do manually, but AI can automate the process and make it much more efficient. When disruptions appear, AI can quickly suggest alternative suppliers to keep business going as usual and minimize downtime.
- Negotiating contracts: Supply chain disruptions frequently require renegotiating contracts. AI can be used to quickly negotiate these contracts with suppliers based on specific criteria, helping companies manage and reduce the impact on their bottom line.
- Interacting with prospective suppliers: AI can also help large corporations interact and build relationships with suppliers and make it easier to do business with them. This can go a long way in securing stable supply when a vendor has to cut deliveries and choose between clients due to an ongoing conflict or disruption.
- Identifying suppliers linked to environmental or human rights violations: Finally, by analyzing large volumes of documents like customs declarations, shipping documents, and other related data points, AI can identify suppliers connected to issues such as environmental and human rights abuses. This can help companies avoid the risk of working with suppliers that do not meet their ethical standards or that may bring them legal compliance issues in the future.
Is your company in the top 14%?
Despite its potential to improve supply chain resilience and the threat of multiple ongoing and looming international conflicts, only some large corporations have embraced AI for their supply chain risk management. While up to 96% of supply chain professionals plan to use AI technology, only 14% are already using it today.
The above represents a huge opportunity to leap in front of the pack in your industry. The time to act is now! Business leaders must ask themselves if they want to lead the pack and join that 14% of corporations already strengthening their supply chains with AI, or stay behind and face the risk of disruption that could attack without a moment’s notice.
How BabelusAI can help in times of crisis
BabelusAI is one company developing generative AI solutions for supply chain management. BabelusAI's platform helps businesses get a 360° view of the supplier market, identify new suppliers, assess supplier risk, and optimize their supply chains. The platform allows companies to reach tens of thousands of prospective suppliers automatically and with a single click, manage supplier relationships, cut discovery times by 90%, and gain insights into their supplier base, all of it without risking a single byte of company data.
Contact us now if you want to learn more about how BabelusAI can help your company manage supplier risk, or book a call to have us set up a pilot for your company free of charge.