High-Growth Supply Chain Businesses Adopting AI and Machine Learning at Faster Pace than Competitors, Epicor Study Finds
25 June 2024 - 6:00PM
Business Wire
According to the 2024 Agility Index research study from Epicor
and Nucleus Research, nearly half of surveyed companies across the
make, move, and sell industries cited concern over escalating costs
as the foremost challenge confronting supply chains, with more than
half using artificial intelligence, automation, or machine learning
for at least one supply chain management application to address.
Notably, a higher percentage of businesses (63 percent) that
identify as high-growth – defined by revenue growth of 20 percent
or more over the past three years – have already integrated
generative AI into their respective supply chain operations to
manage cost and operational challenges.
Nucleus Research surveyed more than 1,700 supply chain
management leaders worldwide to understand how they are leveraging
powerful technologies like artificial intelligence and machine
learning to thrive while navigating challenges like supply chain
disruptions, escalating costs, and skilled labor gaps. The study
also uncovered anticipated future investments in these
technologies.
“When workers are empowered to spend more time innovating—what
humans do best—that’s where the real value creation happens. That
is agility,” said Vaibhav Vohra, Chief Product and Technology
Officer at Epicor. “Our 2024 Agility Index underscores the growing
adoption of AI and other automation technologies as an essential
factor in enabling supply chain businesses to better thrive and
compete. These cognitive capabilities are coming together to
empower workers and their businesses to more readily adapt to
shifting market conditions and better serve their customers.”
Survey respondents indicated they are integrating generative AI
into digital supply chain operations across various functions such
as product descriptions, customer service chatbots, natural
language querying, reporting, and in-application assistance.
Specifically, the adoption of generative AI in customer service
chatbots, noted by 72 percent of organizations, is highlighted as
the most prevalent use case. This widespread implementation is
attributed to the technology's ability to streamline customer
interactions across various sectors.
Similarly, 67 percent of organizations currently employ
generative AI for crafting product descriptions, leveraging the
technology's capacity to analyze customer sentiment and forecast
market demand. This enables a more informed approach to product
design and feature development.
Businesses are also implementing machine learning most
frequently in inventory optimization (45 percent) and demand
forecasting (40 percent), underlining the critical role of these
technologies in managing inventory levels and accurately predicting
future demand.
According to survey respondents, the greatest hope for the
impact of automation technologies lies in increased efficiency and
productivity (32 percent), cost savings (26 percent), and improved
supply chain automation (23 percent). This reflects a strong belief
in the potential of these technologies to drive significant
improvements in supply chain management.
To download a copy of the 2024 Agility Index, please visit our
website.
Survey Methodology
Nucleus Research administered a survey January to March 2024 to
more than 1,700 supply chain and operations leaders across the
U.S., U.K. and Ireland, and APAC. The sample was evenly split
between the Enterprise market ($250 million to $1 billion in annual
revenue) and Small to Medium-sized Businesses (SMB) (less than $250
million in annual revenue).
About Epicor
Epicor equips hard-working businesses with enterprise solutions
that keep the world turning. For 50 years, Epicor customers in the
automotive, building supply, distribution, manufacturing, and
retail industries have trusted Epicor to help them do business
better. Innovative Epicor solution sets are carefully curated to
fit customer needs and built to flexibly respond to their
fast-changing reality. With deep industry knowledge and experience,
Epicor accelerates its customers’ ambitions, whether to grow and
transform, or simply become more productive and effective. Visit
www.epicor.com for more information.
Epicor and the Epicor logo are trademarks of Epicor Software
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Other trademarks referenced are the property of their respective
owners. The product and service offerings depicted in this document
are produced by Epicor Software Corporation. Results are not
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Press contacts: Aaron Masterson Global Head of Corporate
Communications aaron.masterson@epicor.com 612-702-2182