AI Generated Adverts- The impact on Supply Chains..

George Moen wrote a terrific article on Coca-Cola using AI to generate a Christmas advert (link below). This got me thinking about the impact this would have on organization's supply chain as campaigns will become more frequent and more targeted.

https://world-referral-network-vancouver.ghost.io/coca-cola-unexpected-santa-ai-generated-christmas-ad-2024/?ref=wrn-all-articles-newsletter

Impact on supply chains and operations

With AI being able to generate marketing adverts more efficiently and quickly, any business can expect there to be several downstream impacts to the supply chain. The main considerations would be the speed at which the organization can react to the changing market demand, optimizing inventory management and to adjusting production schedules.

Demand and Forecasting changes

Increased advertising will lead to demand surges, putting pressure on Sales & Operations Planning (S&OP) processes. Companies must adapt forecasting models and workflows to respond quickly to changes in demand, or risk stockouts, damaging their reputation and driving consumers to competitors. Agility is key to avoiding these issues.

Inventory management

Shorter lead times will require suppliers to shorten production cycles, leading to more changeovers, buffer material, and potential waste. Warehouse space needs will increase, and logistics challenges, like underutilized vehicles, may raise costs as businesses respond to quick demand shifts and fast delivery expectations.

Conclusion:

To stay competitive in an AI-driven world, it's crucial to continuously improve productivity and build a Lean, Agile, and Resilient supply chain. A culture focused on optimizing inputs and driving continuous improvement will position your company as a benchmark for competitors to follow.

Let's Take Your Business Further. Ask me how.

Dr. Kenneth Moodley LinkedIn or www.nikshen.com

Contact: kenneth@nikshen.com

Tags: # supply chain #inventory management #cashflow management #operations #agile #demand forecasting #Kenneth Moodley