Chatbots Move Closer to Being Integrated into Supply Chains - Sobel Network Shipping Co., Inc.

Chatbots Move Closer to Being Integrated into Supply Chains

The latest advancement in artificial intelligence (AI), chatbots, is being considered by logistics experts to improve supply chain operations. Software providers, such as Blue Yonder Group, SAP, and Manhattan Associates, are developing research programs to examine how generative AI can enhance forecasting, procurement, inventory management, and shipping decisions. These chatbots are being viewed as “super smart supply-chain analysts” capable of reasoning and answering questions such as the most profitable and satisfying options for fulfillment.

Logistics experts are interested in chatbots’ potential to digest large amounts of data and offer clear, useful conclusions, thereby solving the problem of businesses being overwhelmed with information. According to David Vallejo, global head of supply chain planning, manufacturing, and logistics at SAP, chatbots could help companies plan inventories in simple language.

However, relying on chatbots for critical tasks in supply-chain planning poses significant challenges, as inaccuracies may arise from limited information. Despite this, some companies, such as Nestlé and Manhattan Associates, are experimenting with chatbots, as they have the potential to provide simple and clear answers to complex supply chain questions.

Chatbots are viewed as a step beyond AI demonstrations in songwriting and news stories with human-like sounds. They could be a missing link in supply chain communication, although they still require development. Marko Pukkila, an analyst at Gartner, believes that chatbots may still be years away from providing companies with the cheapest and fastest shipping options. However, according to Sanjeev Siotia, Chief Technology Officer at Manhattan Associates, tools such as ChatGPT may someday allow supply-chain managers to ask simple questions such as “where is what?” and receive clear answers.