AI instead of crisis

Supply networks can be very complex. © Bite

This is because artificial intelligence can analyze data in real time and immediately identify anomalies or deviations from normal patterns. To do this, AI systems such as BISS/CAIGO first generate a robust and expandable database from structured and unstructured information from various sources - such as supplier data, supplier links, catalogs of measures, calculated risks, comments, test reports, certificates, chats or emails. "The AI system creates an intelligent knowledge platform from all the data, which makes it possible to transform complex data volumes into usable information," explains Schnüpke. Such AI systems use machine learning algorithms, recognize statistical patterns and correlations and assess the probability and potential impact of risks. To do this, they use advanced analysis methods such as classic time series models or complex simulation techniques such as Monte Carlo analyses.

Recognize risks at an early stage and take countermeasures

With their smart functions, such solutions create forecast models at the user's request that evaluate potential risks and visualize them clearly with dynamic tables and precise visualizations in dashboards and reports. This makes the forecasts easily accessible and understandable for users. Sudden changes - such as political events, natural disasters or trends - in the news or social media, for example, can indicate upcoming disruptions and transportation delays. AI-based software solutions can also derive forecasts regarding disruptions in the supply chain from sudden increases or decreases in product demand as well as signs of financial difficulties or operational problems at suppliers. "If companies recognize such disruptive factors at an early stage, they can take proactive measures and counteract them," explains Mazac.

AI-supported systems analyze large volumes of data in real time, identify potential risks at an early stage and suggest appropriate measures. © Bite

It is advantageous if the software itself generates suitable recommendations for action to minimize the identified risks. High-quality solutions are able to do just that: if demand peaks are expected, the software suggests stock adjustments, for example, in order to be able to respond to rising demand with increased stock levels. If it detects problems with a current supplier, it will suggest a change of supplier. If disruptions are to be expected on a transport route, adjusting the transport route is a sensible measure to avoid potential delays. With the help of early risk detection in real time and the suggested countermeasures, companies can react before serious disruptions occur. As the AI automatically assesses the risks, companies also save valuable capacity and can focus their resources on the most critical areas. "AI-supported software of this kind provides companies with a powerful tool for strategic decision-making and for optimizing their global supply chains," says Schnüpke.

The prerequisite for such detailed and reliable forecasts and appropriate recommendations for action is a comprehensive, coherent database. "An AI is not a crystal ball," says Mazac, "it cannot reproduce anything that it has not learned." All forecasts are therefore based on existing data - the more comprehensive the database, the more accurate the predictions can be. It is also important that data is continuously fed in and updated so that the AI can learn and improve its accuracy.

Resilient thanks to fast response

Unpredictable events can have a significant impact on global supply chains. The increasing complexity and susceptibility to disruption of supply chains - caused by geopolitical conflicts, skills shortages, inflation and climate change - makes efficient risk management essential. AI-supported systems offer a decisive advantage here: they analyze large volumes of data in real time, identify potential risks at an early stage and suggest proactive measures. Companies that rely on such technologies can make their supply chains more resilient and react more quickly to crises.