From the course: The AI-Driven Supply Chain Manager

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AI-powered cost reduction strategies

AI-powered cost reduction strategies - ChatGPT Tutorial

From the course: The AI-Driven Supply Chain Manager

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AI-powered cost reduction strategies

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- [Narrator] Reducing costs without compromising efficiency is one of the biggest challenges in supply chain management. Hidden inefficiencies, unpredictable expenses, and complex procurement decisions often make cost control difficult. AI is revolutionizing cost management by making it easier to identify inefficiencies, optimize procurement processes, and streamline operations. Let's explore how AI can help businesses cut costs while maintaining high operational standards. One way we can do this is by using AI to identify inefficiencies that often go unnoticed. Machine learning models can analyze vast amounts of data to detect excess spending, such as over-ordering inventory, underutilized warehouse space, or inefficient shipping routes. For example, AI can analyze supplier invoices and detect price fluctuations, duplicate charges, or discrepancies, and that helps procurement teams dispute the charges, negotiate better contracts, and avoid hidden costs. AI can also play a critical…

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