Climate change, shift of powers from one polar to multipolars and calamities have made uncertainties part of our lives. From 2020 to 2026, we have seen pandemic, epidemic, global boycott of known brands to the current war that was ceased recently. 

Climate change, shift of powers from one polar to multipolars and calamities have made uncertainties part of our lives. From 2020 to 2026, we have seen pandemic, epidemic, global boycott of known brands to the current war that was ceased recently.

Such change will and has effect and effected our lives; they even stopped our work and have made us look for different routes but could we afford to change our way always? 

No!

COVID-19 has made us shift to WFH, but AI in today’s world could not help us during the Israel-Iran war. The tools can help us analyze the situation and monitor the shipment, but it could not reduce the delays or help us find a way that would be cost-effective and less time consuming. 

This guide discusses reasons for increased uncertainty, deficiencies of today's technology solutions, effective tools for addressing supply chain uncertainty, and how a proper 3PL vendor helps in times of crisis.

How did the 3PL fulfillment company suffer during the war and how was AI a failure? 

Supply chain industry is connected to every wreath of the globe, from politics to fashion to usual house chores. A pinch of chaos affects trade routes which eventually lead to sudden spikes in the price of fuel and raw materials. The recent Israel-Iran war is an example of it. 

The crucial factor is that such events are difficult to predict as multiple things and scenarios are going on in politics which collectively affect logistics. 

Although AI in the recent world has truly changed the supply chain and logistics with demand forecasting, inventory optimization, report analysis, shipment monitoring and others, there are certain limitations which we witnessed recently.  

No plan to face war

AI is completely dependent on past historical data to give predictions and analyse the data. Thats why it cannot forecast data if the war, pandemic or regulation change happens. 

Numbers with no context

We understand the difference between EQ and IQ, and value the importance of both. Likewise, we need to understand the difference between human and AI. AI is fab in numbers but it does not have context as to why a region may become unstable nor left with any true prediction of how fast that would escalate.

Need time to readjust

No matter how advanced technology is used, AI systems still require some time to readjust due to which it is crucial how to use them in time-sensitive situations because a delay could determine whether an issue is identified early enough to prevent costly stock shortages or excessive inventory in the warehouse.

What Technology Do Supply Chains Actually Need?

Supply chain needs a combination of smart systems, real-time data and human effort. 

The effective solution is to build a hybrid predictive and reactive model because it will utilize AI generated forecasting, instant alerts, and human skillset to make decisions based on data, and the context.

This technology should be used along with multi-location fulfillment approach to prevent problematic situations that would interrupt entire operations. 

It needs to implemented by using “what if” situations to prepare AI systems for future calamities. For example, if a critical supply chain vendor ceases operations, or if freight costs rise twofold, running these simulations in advance provides your team with the opportunity to understand its response plan prior to a time when it would be considered urgent.

How to Use Existing Technology More Effectively

Right now, you cannot replace the current technology but you can learn to effectively use them. For this, your prime objective should be to improvise your WMS enough that it would provide you real-time data. At e53 Fulfillment, we invest in our technology to utilize them fully so they would enhance our decisions.  

Besides, centralizing the data dashboards and using AI tools to optimize the inventory keep you updated. 

Yet remember, these tools won’t take you out from chaos. They can help you face uncertainities not combat them. Human effort, context and understanding of such situations can help you use the data effectively and bring a solution on the table.