How AI is Used in Supply Chain Management

Revolutionising Inventory Management

Effective inventory management balances supply and demand. Yet, traditional methods often result in excess stock gathering dust or, worse, critical items running out. AI in logistics and supply chain transforms inventory management by making it proactive rather than reactive. 

AI-powered systems monitor inventory levels in real time, predicting when stocks need replenishment and automatically prompting a reorder before stocks run low. 

In Dynamics 365 Supply Chain Centre, AI and Machine learning algorithms factor in variables like supplier lead times, demand fluctuations, and even external factors such as weather and geopolitical events that might disrupt supply chains. 

In Dynamics 365, AI can evaluate sales data across multiple locations to optimise inventory allocation. This optimisation improves customer satisfaction and lowers the cost of restocking. 

In Business Central, AI supports inventory management with demand forecasting, automatic replenishment, optimising stock levels, providing supplier insights and smart stock allocation.  

Microsoft Dynamics 365 Supply Chain Management

Automated Quality Control

Maintaining product quality is crucial for building trust and ensuring customer satisfaction. AI-driven quality control systems are revolutionising how distribution businesses maintain standards.

Using advanced technologies, AI can inspect products at incredible speeds, identifying defects or inconsistencies that human eyes might miss. Whether spotting a mislabelled package or detecting damage to a product, these systems provide accuracy and efficiency that manual checks cannot match.

Machine learning algorithms enhance these processes by learning from historical inspection data, improving their precision over time.

Automated quality control reduces waste and prevents defective products from reaching customers, safeguarding brand reputation. By integrating these systems into their workflows, supply chain businesses can streamline operations and deliver excellence every time.

Using Copilot, quality control staff can identify abnormal activity related to an item so any issues can be mitigated.

To avoid disruption within the production process, AI can analyse historical data to foresee maintenance issues that could impact quality and proactively deal with upcoming maintenance. 

Transforming Microsoft Dynamics 365 with Copilot

Dynamic Pricing

Dynamic pricing powered by AI allows businesses to adjust prices in real-time based on factors like demand, competition, and market conditions.

Machine learning models analyse historical sales data, customer behaviour, and external trends to recommend optimal pricing strategies. For example, during peak demand periods, prices can be adjusted to maximise revenue, while discounts can be offered to clear excess inventory.

This adaptability ensures profitability while maintaining customer satisfaction by offering competitive yet fair pricing.

Dynamics 365 Supply Chain Management includes a pricing management module that allows you to implement flexible and dynamic pricing models.

AI in Distribution: Transform Your Business with AI and Machine Learning

AI and machine learning are not just about isolated improvements; they’re about creating a cohesive, intelligent supply chain system. These technologies integrate demand forecasting, customer experience, and inventory management into a unified workflow. The result is a smarter, more agile operation capable of adapting to rapid market changes.

Contact our team today to see how we can help you turn your business into a smarter, more agile operation capable of adapting to rapid market changes.

Submit a form below, call 01384 400 600 or email info@syscom.plc.uk