Understanding AI and Demand Forecasting in Supply Chain

Summary

In this episode of 'Decoding the Industrial Revolution,' host Arvin Serim engages in a deep dive with Rahul Ganguli, Chief Supply Chain Officer at Tricord International. They explore the challenges faced by small to midsize enterprises (SMEs) in the global economy, emphasizing the importance of supply chain management for SME survival and growth. Ganguli shares insights on leveraging technology like AI for cost modeling and TMS for visibility, while addressing risks and sustainability in supply chains. The conversation underscores the value of agility, innovation, and resilience for supply chain excellence.

Takeaways

• 🌐 Small to midsize firms make up 90% of companies globally and contribute to 70% of the world's GDP, yet 67% face challenges with survival and expansion, including profitability, funding, and access to technology.
• 🛠️ Rahul Ganguli, the chief supply chain officer at Tricord International, emphasizes the importance of process improvement and risk management in transforming challenges into opportunities in the business world.
• 📈 The integration of AI in cost modeling has become a valuable tool for startups, helping to develop accurate sector-specific cost benchmarks and improve gross margin and COGS management.
• 🚚 Advancements in Transportation Management Systems (TMS) enhance visibility in the supply chain, allowing for better planning and customer satisfaction through real-time tracking and monitoring.
• 🔮 Demand forecasting is being revolutionized by AI, moving towards more accurate predictions that can greatly benefit retail and other industries sensitive to market demands.
• 🌟 For small to midsize businesses, AI solutions can level the playing field by providing access to sophisticated analytics and modeling without the need for an in-house team of data scientists.
• 🔄 The importance of effective communication in supply chain management cannot be overstated, as it directly impacts inventory levels and the efficiency of the supply network.
• 🌳 Sustainability in supply chain operations is becoming increasingly important, with strategies such as nearshoring, 3D printing, and improving SME efficiency playing key roles.
• 🛡️ Risk management is a critical component of supply chain strategy, requiring companies to assess geopolitical, cost, and other risks, and develop mitigation strategies accordingly.
• 📊 ERP systems, when integrated with AI, can significantly improve supply chain efficiency by providing real-time adjustments to demand and supply, reducing waste and improving sustainability.
• 🚀 Entrepreneurs in the supply chain domain are encouraged to fail fast, validate市场需求, and ensure that any technology developed addresses a real-world problem, rather than the other way around.

Q & A

What percentage of companies globally are small to midsize firms, and how much of the global GDP do they drive?

90% of companies around the world are small to midsize firms, and they drive 70% of the global GDP.

What issues do a majority of small to midsize companies face in terms of survival and expansion?

About 67% of small to midsize companies face issues of survival and expansion, which include profitability, access to funding, access to technology, and the inability to scale operationally.

What is Rahul Ganguli's role at Tricord International and what is the company's focus?

Rahul Ganguli is the chief supply chain officer at Tricord International. The company focuses on supporting small to midsize enterprises by leveraging best practices of supply chain management, aiming to bring global supply chain tools and abilities to their doorstep.

How did Rahul Ganguli's career journey in global supply chain and operations management begin?

Rahul Ganguli's career began about 28 years ago when he moved to the United States as a young graduate student. His first foray into supply chain management came when he was selected to be one of the first cohorts of Six Sigma Black belts, working on a project to solve an inventory working capital issue.

What are the four key pieces of supply chain management that Rahul Ganguli mentioned?

The four key pieces of supply chain management mentioned by Rahul Ganguli are plan, source, make, and deliver, utilizing the supply chain operations reference model.

How has artificial intelligence (AI) transformed supply chain management in recent years?

AI has transformed supply chain management by helping in cost modeling, improving visibility in transportation management solutions (TMS), and enhancing demand forecasting. It also aids in creating more accurate and real-time benchmarks for cost criteria across different sectors.

What is the significance of ERP systems in supply chain management and how are they evolving?

ERP systems are crucial in supply chain management as they help in planning and managing resources effectively. They are evolving by integrating AI capabilities, which allows for real-time adjustments and better connectivity with partner systems, ultimately improving sustainability and reducing waste.

What are some emerging technologies or trends that could revolutionize supply chain management in the near future?

Emerging technologies that could revolutionize supply chain management include advanced ERP systems with AI integration, 3D printing, and nearshoring. These technologies and trends focus on improving efficiency, reducing waste, and enhancing communication and connectivity in the supply chain.

How can small to midsize businesses leverage AI solutions despite having limited resources?

Small to midsize businesses can leverage AI solutions by utilizing platforms and tools developed by experts in the field, focusing on specific areas like demand forecasting, cost modeling, and transportation management. They can also adopt AI-enabled ERP systems to improve their operations without needing a large in-house technology team.

What advice does Rahul Ganguli have for young entrepreneurs looking to make an impact in the supply chain domain?

Rahul Ganguli advises young entrepreneurs to fail fast, iterate quickly, and focus on solving real problems rather than inventing technology first. He also emphasizes the importance of understanding the cross-functional nature of supply chain management and the value of market validation.