AI in Supply chains
- 1. Reimagine supply chains with Artificial Intelligence Vibhanshu Abhishek Chief Data and AI Officer, RIVIGO
- 2. 2 Disruptive Trends redefining Supply Chains through AI Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6
- 3. 33 Data is the new oil Revolutions per minute IoT Sensors Battery Speed Fuel Value Air Brake Pressure Coolant Temperature Engine Oil Pressure Location Ignition Status Instrumentation of Rivigo’s fleet enables us to gather 65,000 data points per second Source: Rivigo analysis Supply chains generate enormous data which if captured and measured can lead to efficient supply chain design 1
- 4. 4 Fuel Pilferages Mileage Improvements IoT Devices GPS and Fuel Sensor Intelligent Data Modelling Over Fuel Data Real Time Pilferage Alerts Fuel efficiency improvements 20-30% Fuel sensors help achieve 100% pilferage control and bring upto 30% improvement in fuel efficiency Pilferage Control100% Self learning algorithms work on real-time sensor data Source: Rivigo analysis Cost Optimization Cost reductions2% Mileage of 32 Ft MXL vehicles (KMPL) Time Mileage Algorithms analyze data to generate insights : • Smart Refueling by predicting most optimal filling location leveraging price differential across states • Pilot-level analysis based on 20+ parameters : • Driving Behavior • Vehicle specific • Pilot profile • Load specific • Environment 1
- 5. 5 With fuel data leading to new cost optimization opportunities Patented fuel algorithms for detecting fuel pilferage events Dynamic fueling algorithm for cost optimization 1 Play Video
- 6. 6 Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6 Disruptive Trends redefining Supply Chains through AI
- 7. 7 Robotic Process Automation (RPA) can replace 50% of the activities performed by humans What is RPA? The impact of RPA on supply chain & logistics Estimated worldwide sales of warehousing & logistics robots by the end of 2021 $ 22.4 Bn Companies will use RPA by 2019 to automate support tasks. Key Insight: Tasks, not jobs are being automated 72% Retail & consumer products suppliers already engaged in some form of intelligent automation 40% Ø Process of automating business operations Ø Software or hardware bots mimicking human actions Ø Performing a sequence of operations without human intervention Industry Reports 2
- 8. 8 With plenty of implementation opportunities across supply chain functions to collect quality data Cashless payments & e-documentation Shipment scheduling & tracking Warehouse management Transparency of Billing Customer relationship management High precision Operations Accurate Decision Making Vendor onboarding & management Hassle free Service Supplier performance evaluation Budgeting & RFP generation Seamless end-to-end visibility of cargo Auto-Inventory procurement ChatBots for query resolution 2
- 9. 9 High precision enables error-free operations through RPA based predictive modeling Box-level tracking of packages Algorithm-powered placement Screenshots from Express Cargo App 2
- 10. 10 Seamless customer experience delivered by end-to-end process automation (1/2) Single-click booking Live tracking with notificationsInstant documentation Live status visibility of all shipments through the journey Instant proof-of-deliveryRequest pickups at the click of a button 2
- 11. 11 Seamless customer experience delivered by end-to-end process automation (2/2) Pilot Assistance via Chat bots for resolving tyre burst incidents 2
- 12. 12 Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6 Disruptive Trends redefining Supply Chains through AI
- 13. 13 Dolor Dolor 65% 50% Reduction in lost sales due to product unavailability Reductions in overall on-hand inventory Reduction in forecasting errors 40% Savings in warehousing related costs DEMAND FORECASTING PROCUREMENT CAPACITY PLANNING SMART WAREHOUSING ORDER REPLENISHMENT ORDER FULFILLMENT STRATEGY Benefits from AI-based decision making Managing uncertainty in supply chains for smarter decision making 50% Source: Mckinsey 3
- 14. 14 Predictive Maintenance • Vehicle vitals data like engine temperature, oil pressure etc. analyzed • Anomaly detection in last 200km distance travelled • Identify vehicles with high probability of breakdown • Predicting future demand for optimizing network flow and efficiency • Helps balance the network, enabling maximum demand to be fulfilled in shortest feasible time • Identify patterns from demand variability across days, weeks, months, and years Demand Predictions Enabling organizations to build proactive supply chains 82% accuracy in predicting breakdowns Annual Savings of 2.5 crores 3
- 15. 15 Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6 Disruptive Trends redefining Supply Chains through AI
- 16. 16 Transparent supply chains improve visibility across stake holders for better control over productivity and costs National Freight Index Remote Temperature ManagementClient Portal Price Location Temperature • Real-time tracking of 7 million lane and truck type combinations • Indices across 150 combinations for deriving mega-trends • Customized client portal that offers real-time visibility and tracking of the vehicle • Raise pick up requests and reconcile bills, for end- to-end tracking • Two-way monitoring system to remotely view and control the temperature of fleet • Elimination of dependencies to maintain temperature integrity 4
- 17. 17 Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6 Disruptive Trends redefining Supply Chains through AI
- 18. 18 ML and behavioral economics will make logistics safer Driving Ustaad Computer Vision: Second pair of eyes • Real-time visibility of whether driver is focused while driving • Advanced Driver Assistance System (ADAS) that alerts if driving conditions are unsavory or approaching accident prone areas • Driver profile creation by advanced algorithms • Personalized pilot training with tip- cards based on past performance Zendrive uses sensor data to understand driving behavior, like when and how safely they’re driving Eyesight, and YI Technologies use cameras that track driver behaviour in the truck cockpit with edge- based computer vision 5
- 19. 19 Data is the new oil. Robotic Process Automation (RPA) will take over manual tasks. AI will address uncertainty in supply chains. Transparency will drive efficiency in supply chains. ML and behavioral economics will make logistics safer. Future of Logistics is technology led. 5 4 3 2 1 6 Disruptive Trends redefining Supply Chains through AI
- 20. 20 Future of Logistics is technology led Autonomous Trucking 6 Blockchain Drone Delivery Blockchain enabled supply chains support transparent, secure and faster operations Unmanned aerial vehicles (UAVs) used for last mile delivery AI guided systems will power full and semi- autonomous trucks in the future
- 21. 21 6 With Autonomous trucking to play a crucial role is shaping the logistics ecosystem Play Video Long haul Short haul Autonomous trucking Pitstop 2Pitstop 1
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