Leveraging AI to Manage Global Supply Chain Disruptions

As the Philippines continue to experience high inflation, recording 8.6% in February 2023, Filipinos are expected to adjust their budgets and prioritize essential goods and services.

While this poses an opportunity for grocery retailers to increase sales, the ongoing global supply chain disruptions have also made it difficult to keep inventory high and prices low.

According to the World Economic Forum, the invasion of Ukraine is a primary cause of much of the energy and food price inflation in many countries and is fueling a global food crisis. Extreme weather also continues to disrupt the global supply chain by impacting major shipping routes and crop yields. In the Philippines, storms in the 2021-22 crop year caused sugar shortages, resulting in skyrocketing price increases from PHP54.5 to PHP89.5 per kilo for refined sugar.

As inflation is expected to remain high in 2023, economists anticipate a recession in major economies, which will certainly affect the developing world. It is also likely this will have a significant impact on grocery retailers. Fortunately, machine learning and AI (artificial intelligence) technology, like the technology used by global supply chain leader RELEX Solutions, is able to provide insights to diminish disruptions to business operations.

Automated demand forecasting reduces operational costs