In the rapidly evolving landscape of artificial intelligence (AI), the supply chain and logistics sectors have emerged as fertile grounds for practical AI applications. Industry giants like Flexport and Uber Freight, along with numerous startups, are harnessing AI to enhance operations and boost profitability. However, the transformative potential of AI isn’t limited to large corporations; small and medium-sized enterprises (SMEs) are also beginning to reap significant benefits.
Netstock, an inventory management software company established in 2009, exemplifies this trend. The company has introduced the Opportunity Engine, a generative AI-powered tool designed to integrate seamlessly into existing customer dashboards. By analyzing data from a customer’s Enterprise Resource Planning (ERP) software, the Opportunity Engine delivers real-time, actionable recommendations aimed at optimizing inventory management.
The impact of this tool has been substantial. Netstock reports that it has generated over one million recommendations to date, with 75% of its customers receiving suggestions valued at $50,000 or more. These figures underscore the tangible value AI can bring to SMEs, particularly in enhancing operational efficiency and reducing costs.
One such beneficiary is Bargreen Ellingson, a family-owned restaurant supply company with a 65-year history. Initially, the company approached AI integration with caution. Jacob Moody, the Chief Innovation Officer, noted the inherent skepticism within longstanding family businesses toward abrupt technological changes. To address this, Moody introduced the Opportunity Engine as an optional tool for warehouse managers, allowing them to adopt it at their own pace.
This approach has yielded positive results. The AI tool has proven instrumental in sifting through extensive reports, enabling staff to make informed inventory decisions more efficiently. While the AI-generated summaries aren’t flawless, they effectively distill critical information, especially during off-hours, thereby reducing the likelihood of errors.
Moreover, the Opportunity Engine has empowered less-experienced employees by providing them with insights that enhance their decision-making capabilities. Moody highlighted the case of an employee with a high school diploma and two years of experience who, with the aid of the AI tool, has become more effective in managing inventory tasks.
The success of Netstock’s Opportunity Engine illustrates the broader potential of AI to democratize advanced technological tools, making them accessible and beneficial to businesses of all sizes. By offering user-friendly, impactful solutions, AI is poised to become a cornerstone in the operational strategies of SMEs, driving efficiency and competitiveness in an increasingly digital economy.
