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Artificial Intelligence has already received significant buzz in recent years. The business fraternity, especially, is consistently drawn to its remarkable potential. By integrating AI solutions with a variety of systems and technologies, enterprises are delivering better products.  

Nowadays, customers have higher expectations when it comes to service, which is why you need to provide a better customer experience than your direct competitors if not everyone else. Furthermore, they demand faster and more efficient responses to their queries. Chatbots emerged as the trusted sidekick to save time by automating manual processes. Solving customer queries quickly requires fewer resources and produces a higher return on investment. 

What are chatbots? 

Chatbots have become the new norm when addressing customers’ queries and concerns digitally. They are automated agents talking to customers and solving their queries. They exist in your smartphones, devices and even in cars. In comparison to a human, a chatbot is much more accurate and faster. 

In fact, people have already got used to digital assistants such as Siri, Ok Google and Cortana. Anyone can simply talk and chat with these assistants. 

Chatbots provide efficient and immediate responses as they are integrated with AI. They are easily accessible and adopted. All the bots have a common back-end system and process which helps them in responding to the customers. In fact, the supply chain industry has also introduced Chatbots for storing data and streamlining the entire process. 

Let’s explore why Supply Chain Management and Chatbots make such great friends.  

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from the supplier to the customer. It is the process of transforming raw materials into the product, which is to be delivered to the customer.  

The process includes product development, production and sources involved in creating products and maintaining the flow to customers. 

Four supply chain components 

  • Suppliers: They provide the raw material needed for manufacturing the product. For example, iPad, processor chips etc. 
  • Manufacturers: They collect all the parts provided by the suppliers and bring them together to build a quality product. 
  • Distributors: They store and sell the products that are produced by the manufacturers. 
  • Customers: They generate the demand for the product, purchase it, consume it and influence the quantity of their production. 

Seamless supply chain management can yield great results; however, there are also some challenges or limitations that need to be encountered when it comes to efficient production. 

Limitations of supply chain management 

  • Mismanagement in the supply chain leads to waste of time, labour, services etc. That’s why the chain must be managed properly based on the business goals. 
  • Extensive training is required to understand the working of the chain, if there is a lack of training then the system becomes more complex to work with. 
  • Advanced analytics are required to understand complex algorithms and technologies. 

Chatbots came to be a boon for Supply Chain Management since their use would automatically address many challenges that Supply Chain Management poses. 

Integration of chatbots with the supply chain 

The digital world offers wide access to a variety of technologies that can be employed depending on business needs, and AI-powered Chatbots are becoming increasingly common. 

One of the most common supply chain scenarios is something like this – if the supplier wants the updated status of raw materials or supply dates, he manually enters the booking number in the system to search for the needed material from the inventory. 

Once the product is delivered from the supplier’s end, he can no longer track the product’s journey. There is a communication gap between customers and suppliers at times when product delivery is delayed. Not only can a good customer be lost, but a situation such as this can be a detrimental blow to the goodwill of the business. Chatbots are now getting integrated with supply chain management integrated with chatbots so this can be avoided. 

How did that happen? 

Chatbots keep track of real-time data which is stored in a system. They have the right to update the data of suppliers and customers. Chatbots using AI memorize the code that is entered and automatically update the status of the data. This helps with faster and more efficient delivery. 

Chatbots are also used as virtual assistants to solve the queries of customers. As customers demand a quick response to their queries it is one of the best tools to use. 

Not only that Chatbots also serve as an excellent resource for planning and strategizing the supply chain of orders. With the help of AI and chatbots, a revolutionary transformation has been brought about for the entire supply chain by eradicating the communication gap between customers and suppliers. 

Let Cygnet Digital be your technology partner in growth and innovation. Reach out to us today!

Cygnet Digital

Cygnet Digital

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Cygnet Digital is a technology consulting and development company, that co-creates business growth strategies and delivers partnership value through the Power of Digital. We specialize in leading technologies such as Cloud Computing, AI/ML, and Blockchain with a focus on innovation and agility.

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