Supply chain is undoubtedly the backbone of any commercial
business and is currently on the brink of a revolutionary transformation as AI
technologies such as Chat GPT promises to make the most complicated of tasks a
piece of cake.
Chat GPT (Chat Generative Pre-Trained Transformer) is
an expansive language model based on GPT-3.5 architecture and drilled by Open
AI. Launched late in 2022, Chat GPT has emerged as a medium that can provide an
all-inclusive response to users using real time data. However the question that
every industry is asking is; Can Chat GPT take over the supply chain
industry?
In this blog post, we will dive into the possibilities and
challenges of involving Chat GPT in your supply chain as well as if it has the
potential to transform this intricate industry.
The Potential of Chat GPT
Chat GPT holds immense potential to completely transform how
supply chains function, especially when integrated with a robust cloud WMS (Warehouse
Management System). You can think of it as an assistant that works continuously
to ensure everything is working as smoothly as possible.
Imagine you just ordered your favorite pair of designer
shoes that you have been saving up for months online and now you are curious to
know when the package will arrive. Chat GPT helps businesses provide their
customers access to real time data so they are not left wondering where their
order is and how long it will take to be delivered.
From getting products from different suppliers to storing it
at one place to getting it delivered to the customer safely, with Chat GPT all
processes get a whole lot smooth and simple. Think of it as a virtual superhero
that can help you with tasks you did not even think were possible.
Here is what Chat GPT says it can master:
Predicting what people want: ask a business owner and they
will tell you how stressful it is to gauge whet\her customers would even be
interested in buying their new product. Chat GPT saves you from this hassle by
leveraging information from multiple social media platforms and news to make
close-to-accurate predictions about what people want to see in the market. With
its help, businesses can buy more of the in-demand items as well as save money
from being wasted on products, customers won't even be interested.
Finding the Best Way to Deliver Stuff: Chat GPT uses
in-depth analytics to find the fastest and easiest way to deliver stuff from
warehouses to customers' location ensuring that you are not emptying your
pockets in transportation only.
Talking to You: imagine calling a store and then having to
wait before someone from customer service can address your problem. That's
definitely an experience you don't want your customers to have and Chat GPT can
help you with it. It's programmed Chat Bots can answer all user queries within
minutes.
Spotting Problems Early: If there is something in your
product that doesn't sit right with you, Chat GPT and Open AI can detect these
issues in seconds by analyzing real time data.
All in all, Chat GPT and Open AI have high hopes for how
they can transform the supply chain industry. By using its advanced features,
it can help companies work faster, make better key decisions, and take customer
satisfaction to new heights.
Pros of Chat GPT
Even after the chaos of Covid-19, the global chain is still
grappling to find some of its missing puzzle pieces which has led to supply
chain operators to put on their detective hats and peering into the unknown and
taking help from more advanced machinery to help find where they are
lacking.
Imagine a world where companies are desperately seeking for
a savior to sustain their tethering profit chats and that is exactly Chat GPT
enters the scene. How? By helping in quick and effective decision-making that
will ultimately result in higher customer satisfaction.
Chat GPT can also facilitate the operators in gauging their
Key Performance Indicators (KPIs), foreseeing trends in the web of supply chain
and ensure seamless compliance. And the best part? It can communicate with all
the devices connected to the internet by tapping into the Internet of Things
(IoT) and gather information to allow the supply chain to run better than ever
before. Think of our little AI superhero as a swift army knife for supply chain
managers!
Moreover, Chat GPT can help improve your customer service
too so no customer is left in the dark about their order status. Customers or
internal service agents could ask about an order and receive immediate answers.
It creates a coherent bridge between customer queries, warehouses and 3pl software dealing with third party
logistics which dramatically reduces the risk of any miscommunication which
results in improved efficiency and reduced costs.
Nevertheless, experts predict that we have still got a
couple of years before these benefits spring into action in the supply chain
industry.
Gartner, a renowned research firm, predicts that generative
AI will be incorporated into non-supply chain applications within the next two
to five years. But, given the intricate and company-specific nature of supply
chain models, this advancement is expected to take around a decade, according
to their report.
Cons of Chat GPT
While the road ahead with Chat GPT is buzzing with
possibilities, there are also some caution flags waving ahead. According to a
report by McKinsey, businesses are transitioning to the Chat GPT dependent
stage slowly as Open AI technologists are working to eradicate all its
practical and ethical issues. Mckinsey expressed his concern about accuracy and
security of its functions. McKinsey notes ChatGPT's occasional tendency
to "hallucinate," confidently producing wrong information without a
way to alert users or question the output.
Content filtering also remains a standing challenge since a
few inappropriate images and texts have appeared during the testing stage.
Additionally some of its output is generally biased and Chat GPT is under the
process of adapting to a company's communication style and work ethics.
Intellectual Property (IP) also remains a rising problem.
Despite the given challenges, Experts are still hopeful that
with strategic planning and approach, companies can unlock the potential of
Chat GPT and use it to their own advantage.
Bottom Line
In the potent world of supply chain, Chat GPT promises a lot
of benefits but there are also a few warning signs. While it stands as a
glimmer of effectiveness and efficiency, the full adaptation to Chat GPT and
other futuristic technologies requires addressing the issues of accuracy and
ownership carefully.
Author Bio
Faizan Dosani is a dynamic entrepreneur and visionary co-founder of 3plnext, a
leading warehouse management software (WMS). With a remarkable career spanning
over a decade, Faizan has consistently demonstrated his expertise in business
development, capacity enhancement, and strategic planning. His cross-functional
team leadership skills and innovative conceptual development have been
instrumental in the success of numerous start-ups.
