#81: Next-Gen Smart Warehouses: How AI Is Shaping The Modern Supply Chainš
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This newsletter will take you aboutĀ 4 minutesĀ to read.
I. Spotlight:Ā Next-Gen Smart Warehouses: How AI Is Shaping The Modern Supply Chainš
Warehouses are the backbone of the supply chain industry. They are a critical link that ensures products are stored safely, tracked accurately, and dispatched timely to meet customer demands. The global warehousing and storage marketĀ grewĀ to $714 billion in 2023.
Todayās fast-paced logistics industry has increased the complexity of modern warehousing. From maintaining precise inventory to handling diverse products and ensuring seamless collaboration among multiple stakeholders, the stakes are high. Any inefficiencies or errors could lead to delays, increased costs, and dissatisfied customers.
Since the Covid-19 pandemic, thereās been a strong focus on de-risking supply chains and spreading manufacturing facilities and warehouses. "It's clear that there's a strong effort to re-shore back to the U.S.,ā Tom Ryden, executive director ofĀ MassRobotics, tells me. āI think the only way you can do that effectively is with some form of automation."
Enter artificial intelligence. With the advent of autonomous drones, robotic arms, and intelligent human-machine collaboration, warehousing is undergoing a revolutionary transformation. Letās understand these innovations, where they fit into warehousing, and how they can deliver value.
Tackling Inventory Challenges With Autonomous Drones
Maintaining accurate inventory has been a daunting task for warehouse operators. Traditional manual checks are time-consuming and prone to human error. This challenge is more pronounced in large warehouses that handle thousands of SKUs, where even minor errors could lead to big financial losses and erosion of customer trust. In a survey by Stitchlabs, 67% of companies shared that goingĀ out of stockĀ after an order is placed is a top inventory mistake that frustrates customers.
II. Industry Roundup:
1. Article: Strategic alliances for gen AI: How to build them and make them work
14 minutes | McKinsey | Alex Singla, Alexander Sukharevsky, Et al.
Generative AI (gen AI) is set to revolutionize business with an estimated annual economic impact of up to $4.4 trillion. To fully harness this potential, companies must rethink their operational strategies, especially in forming strategic alliances with gen AI providers. Effective collaboration, choosing scalable and interoperable providers, and maintaining control over strategic directions are crucial for leveraging Gen AI's transformative power.
->Ā Read the Article
2. Article: Auditing Algorithmic Risk
21 minutes | MIT Sloan Management Review | Cathy OāNeil, Jake Appel, and Sam Tyner-Monroe
Artificial intelligence and large language models (LLMs) are increasingly automating tasks traditionally done by humans, such as credit approvals or job screenings. However, the opacity and complexity of these technologies raise concerns about unintended harms and biases. This article advocates for rigorous auditing to ensure safe and fair operations, involving diverse stakeholders to identify potential harms. It introduces an Ethical Matrix and Explainable Fairness strategies to assess and mitigate risks, emphasizing tailored approaches for each application.
->Ā Read the Article
III. From my Desk:Ā
1. Announcement: Annual CDOIQ Event
01 min | LinkedIn
I'll be speaking at the Annual CDOIQ event next week in Boston. The session is on unlocking Business ROI by Gamifying Data Culture! For over a decade, at Gramener, we've seen leaders struggle with driving the adoption of initiatives that use data science, measure ROI from data investments, & build a data culture. Karan Dhawal and I will be sharing real-world stories, actionable frameworks, and insights on delivering value with data & AI.
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Thank you for subscribing and reading the newsletter. I appreciate your attention,
Ganes.
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IāmĀ Ganes Kesari. I publishĀ āData-Driven FutureāĀ to help understand how data shapes our world, explore key trends, and explain what they mean for you today. IĀ speakĀ andĀ writeĀ to demystify data science for decision-makers and organizations.
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