Supply Chain Resilience: The Role of AI Robotics

3 min read

Supply Chain Resilience

In today's interconnected global economy, supply chains are critical in keeping businesses running smoothly. However, these complex networks are vulnerable to a host of disruptions – from natural disasters and geopolitical events to cyberattacks and global health crises. Innovative approaches such as AI robotics can ensure supply chain resilience.

Implications of supply chain crises

When supply chain disruptions occur, they can lead to significant bottlenecks that cause severe delays and inefficiencies. A survey by Interos in 2021 found that organizations lose an average of $184 million annually due to supply chain disruptions, with 94% of participants experiencing a negative impact on revenue. These disruptions also cause operational reductions, with 6% of global supply chains shutting down entirely​​.

Rising costs are another significant fallout from these disruptions. The price of commodities rose 19% between May 2020 and May 2021 due to supply shortages. Similarly, container shipping costs tripled from rates in mid-2020 due to the surge in demand and limited supply​​.

Moreover, these disruptions can cause significant reputational damage. Approximately 83% of respondents in the Interos survey reported reputational harm due to supply chain disruptions, which can deter existing customers and discourage potential ones​​.

Picking as a critical factor in supply chain resilience

Within the intricacies of supply chains, one crucial process that disruptions can heavily impact is picking. This process, which involves selecting and retrieving products from storage in a warehouse for shipment, is often labor-intensive, prone to errors, and directly tied to a company's ability to fulfill customer orders in a timely manner.

Enter Sereact, a pioneering AI robotics solution that aims to transform this critical process. Sereact fully automates the pick-and-pack processes in warehouse operations, making them more efficient, reliable, and, notably, more resistant to crises.

One of the key features of Sereact is its ability to be fully operational from day one, eliminating the need for time-consuming and cost-intensive robot programming. The AI solution can reliably grip any object and independently develops adequate object manipulation strategies, even for complex picks that traditionally require human intervention​.

AI robots for supply chain resilience

The Sereact solution is designed for continuous and efficient operation, even in times of labor shortages or other disruptions. This level of autonomy ensures that warehouse operations can continue uninterrupted, helping businesses to maintain service levels and meet customer demands, even in challenging times​​.

Moreover, Sereact's AI software offers a rapid return on investment, promising cost savings from the first pick and an ROI in less than a year. This benefit is due to the software's seamless integration, which allows for single-day-deployment, significantly reducing the time and cost typically associated with integrating new systems into existing operations​.

In conclusion, businesses grapple with the increasing prevalence of supply chain disruptions. Solutions like Sereact enhance resilience and efficiency in critical processes such as picking and play a vital role in maintaining operational continuity and customer satisfaction. By leveraging AI and robotics in warehouse operations, businesses can better navigate the challenges of today's unpredictable business landscape, ensuring they are prepared for whatever disruptions may come their way.

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