In 2025, supply chain disruptions will cost global businesses more than $1 trillion in losses. Geopolitical instability and unrest in Eastern Europe, combined with the worsening situation in the South China Sea, are set to disrupt the global supply chain. While many businesses still have reservations about using AI in the supply chain, it can prove crucial in reducing operational expenses and improving efficiency. This piece focuses on how AI can help supply chain businesses overcome operational challenges and the key steps to ensure this is done successfully. Modern operations have complex systems that require a progressive approach. As the need for faster deliveries grows, organizations must overcome the challenges of climate change and rising tensions among governments. Moody’s predictions show that disruptions due to global conflicts will continue. In addition to tensions among countries, natural disasters such as forest fires, floods and hurricanes have impacted the global supply chain. Typhoon Yagi in Vietnam in September 2024 was one such instance. It caused production to slow down, affecting the supply of goods. The new era of same-day deliveries and quick commerce also challenges the supply chain. Strategic efforts are needed to cope with the demand for quick commerce, faster deliveries and the impact of geopolitical instability. Inherent flaws in the conventional supply chain approach are a key challenge most enterprises face when coping with these challenges.

Full opinion : The Role Of AI In Future-Proofing Supply Chains.