Many North American food enterprises are adopting generative Artificial Intelligence (gen AI), which is a type of AI that performs tasks like summarizing, answering questions, and classifying data. Such machine learning models can quickly identify and learn patterns and structures from large datasets. 

However, while many are adopting gen AI at some limited level there are signs of accelerated application in key areas such as supply chain strategy and operations. 

In fact, there are four key areas in which leading food enterprises are leveraging gen AI to bring efficiencies, productivity and value to their supply chains:

Improved Forecasting and Planning. Food companies are leveraging gen AI to analyze their historical data and stack it against other factors—such as inventory and supplier data, production patterns, and transportation and distribution networks—to create more accurate and resilient forecasts.

Because food suppliers oftentimes deal with unpredictable demand from consumers, Kraft Heinz uses its AI-powered software called Lighthouse to help anticipate and adjust to these demand shifts. Lighthouse uses proprietary algorithms and data from suppliers, factories, and distribution centers to plan product demand and recommend how to handle supply chain disruptions along the way, according to a recent article in Business Insider. The goal is that with AI, Kraft Heinz associates can recognize patterns and precisely address these demand fluctuations, boosting sales.

Enhance Freight Management. AI is driving insights that help improve traceability and enable dynamic supply chain decisions. Route optimization and asset management can be leading use cases, with relatively high adoption, economic impact and success probability. 

For example, Aldi International Buying Asia, the global hub for the major supermarket chain to source products from Asia, is turning to AI to strengthen its freight management. This major supermarket chain is implementing a technology platform to centralize its global shipping volume and increase visibility. 

Earlier last year, Aldi went live on One Network’s NEO platform to digitize its supply chain, reduce costs, and enable end-to-end visibility and collaboration. One Network is the leader in supply chain control towers and provider of the Digital Supply Chain Network™. Its solution gives supply chain managers and executives end-to-end visibility and control with one data model and one truth, from raw material to last-mile delivery.

“This will greatly improve effectiveness in collaborating with our suppliers and being more responsive to our customers,” says Fritz Walleczek, Managing Director of Aldi International Buying Asia.

Automation Operations. AI allows robotics to handle tasks such as picking, offering support across sorting, and returns management. Modern AI software analyzes warehouse layouts and processes to reduce travel distances for robots and humans, optimize workforce planning, and facilitate interactions between workers and robots to improve warehouse and dock efficiencies. The opportunities to use AI to automate operations are limitless. 

The Coca-Cola Company recently embarked on a five-year strategic partnership with Microsoft Corp. to align its core technology strategy systemwide, enable the adoption of leading-edge technology, and foster innovation and productivity globally. The companies have been jointly experimenting with groundbreaking new technology like Azure OpenAI Service to develop innovative generative AI use cases across its manufacturing and supply chain. This includes testing how Copilot for Microsoft 365 could help improve workplace productivity.

Most major independent bottling partners also have followed suit in migrating applications to Microsoft Azure. The company currently is exploring the use of generative AI-powered digital assistants to help employees improve customer experiences, streamline operations, foster innovation, gain a competitive advantage, boost efficiency and uncover new growth opportunities.

Improved Risk Management. Risk assessments help build basic seasonal or templated event models by allowing food chain practitioners to model specific events such as weather events, wildfires, recessions, and pandemics. Food companies now use AI to respond to crises and strengthen supply chains before they are strained. AI can recommend changes to a company’s supply chain policies based on a multitude 
of factors, such as seasonality and macroeconomic trends. For instance, AI can identify the best supply chain configuration, the optimal number of suppliers (and their locations), and the most favorable terms of the supply chain contracts.

These are significant ways in which the food supply chain industry can leverage AI. 

“However, AI won’t change food chain management overnight but we should continue to see steady technological progress in the Ken Goldberg next few years,” says Ken Goldberg, Distinguished Professor of Engineering & Chief Scientist, UC Berkeley & Ambi Robotics, and speaker at last year’s Food Shippers Annual Conference. 

Related Articles:

• How Unilever Is Leveraging AI To Transform Its Ice Cream’s Supply Chain
• Generative AI in Action
• Wendy’s Co-Op Leverages AI and Supply Chain Digitalization
• Coca-Cola Explores Use of AI to Streamline Operations, Boost Efficiencies

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