In the complex and interconnected web of modern supply chains, efficient asset tracking visibility is imperative for financial success. The problem, however, lies in the fragmentation of information and workflows, which leads to inefficiencies, errors, and a lack of real-time insights. Let’s look at how AI-infused workflows are transforming asset tracking from a fragmented landscape to a seamless flow of information and efficiency.
The Depth of the Challenge
The fragmentation in asset tracking visibility often occurs due to disparate systems, manual processes, and a lack of integration across the supply chain. Did you know that only 6% of companies have full visibility on their supply chain while 69% of companies do not?! In fact, this lack of visibility proved to be a huge vulnerability during the pandemic with 38.8% of U.S. small businesses reporting domestic supplier delays in the most recent and final week of the Small Business Pulse Survey’s Phase 5. It was found that 43% of small businesses don’t even track their inventory!
On average, U.S. retail operations have a supply chain accuracy of only 63% which leads to major delays and re-stocking issues. For instance, 34% of businesses were found to have shipped an order late due to selling products that weren’t in stock. Delays in receiving shipments due to lack of transportation visibility can cause a ripple effect throughout the supply chain, leading to increased prices and further complications. A survey revealed that supply chain outages are an economic burden that costs companies an estimated $184 million annually.
Other than impeding operational efficiency, fragmented workflows also increase the risk of misplaced assets, theft, and compliance issues. A survey found that 46% of assets lost by organizations are misplaced by employees, while 29% of assets lost are stolen by employees, and 27% of assets lost are lost during transportation. Additionally, 25% of assets lost are because they were not properly recorded in the system.
A survey by the National Retail Federation (NRF) disclosed that shrink, or loss of inventory related to theft, shoplifting, error, or fraud, is reducing the bottom line by $46.8 billion across the industry!
The absence of asset tracking visibility and a unified view across the supply chain results in delays, and inaccuracies, and hampers decision-making while making organizations vulnerable to disruptions. In an era where supply chain efficiency directly correlates with competitiveness, it is imperative for organizations to set their systems right.
Transforming Asset Tracking Visibility in Supply Chain with AI
AI has proven to be a transformative force in addressing the challenge of fragmented asset-tracking workflows. By integrating it into their supply chain workflows, organizations can create a cohesive and intelligent system that continuously learns and adapts to changing conditions.
When the COVID-19 pandemic revealed vulnerabilities and cracks in global supply chains, retailers had to re-think their strategies. According to a recent report, 94% of organizations that embraced AI in their supply chain management experienced increased supply chain resilience during the pandemic. It became glaringly obvious that AI contributes to supply chain resilience by providing real-time visibility into inventory levels, supplier performance, and potential disruptions. This foresight enables proactive decision-making and cushions the blow of unforeseen events on the supply chain.
By improving asset tracking visibility, AI-infused workflows also allow organizations to predict asset movements and demand fluctuations and optimize routes for efficient asset utilization. A study concluded that AI-powered supply chain analytics could reduce transportation costs by up to 10% and cost of deliveries by up to 20%. Proper route optimization also lowers the overall carbon footprint just by lowering kilometers driven. Furthermore, businesses could save up to 20% in mileage and improve their order capacity by as much as 100% without increasing their fleet!
Using AI to track assets also improves inventory accuracy, and decreases costs associated with misplaced or delayed assets. Companies implementing AI in procurement see about 35% to 65% improvement in inventory and service levels and a 15% reduction in logistics costs.
The impact extends all the way to customer satisfaction and increased revenue, as AI-infused workflows enable better communication, transparency, and responsiveness. 68% of organizations recognized the urgency of working towards end-to-end transparency and traceability of products.
Conclusion
Addressing the challenges associated with fragmented workflows isn’t enough. It is imperative to fix the root cause by changing the system. Only then can organizations achieve cost reductions, operational efficiency, improved customer satisfaction, and increased revenue.
The journey from fragmentation to flow in asset tracking visibility is empowered by AI-infused workflows. By enabling the seamless flow of information and automated decision-making processes throughout the entire supply chain, AI improves its agility and allows organizations to adapt swiftly to market changes and disruptions.
By 2035, 45% of supply chains are set to go mostly autonomous. Embracing AI to enhance asset tracking visibility is not just a technological upgrade anymore. Rather, it is a strategic move toward a more connected, adaptive, and competitive supply chain landscape. For more information, please write to hello@felixsolutions.ai.