Excel in Upstream Logistics with Artificial Intelligence (AI)
Businesses are always on the lookout for ways to increase efficiency, reduce costs, and thereby enable and ensure operational safety. To aid this purpose, the industry is now embracing machine learning models, one of which is using artificial intelligence (AI) to improve upstream logistics. But will artificial intelligence really help organizations excel in their upstream logistics operations? Keep reading to find out.
What is upstream logistics in supply chain?
The upstream segment of the oil and gas industry contains exploration activities, which include creating geological surveys and obtaining land rights, and production activities, which include onshore and offshore drilling.
This sector also includes related services such as rig operations, feasibility studies, machinery rental, and extraction of chemical supply.
Many of those employed in the upstream part of the industry include geologists, geophysicists, service rig operators, engineering firms, scientists, and seismic and drilling contractors. These people are able to locate and estimate reserves before any of the actual drilling activity starts.
Using artificial intelligence to transform upstream supply chain
It is a well established fact that the application of artificial intelligence has changed the game for a plethora of businesses. So it comes as no surprise that this holds true even in the case of managing upstream logistics in supply chains.Factors like remote worksites, dependency on various suppliers, and the ever-changing nature of logistics tend to bottleneck the upstream supply chain. Additionally, as upstream logistics deals with data across multiple sources, managing and scrutinising each can becomes tedious and time consuming. And for years now, logistics stakeholders and supply chain managers have been on the hunt for technologies that help them reduce delays, increase efficiency, and thereby optimise costs by improving operations. Here is where artificial intelligence comes in and saves the day. But just how does AI improve logistics in the upstream supply chain? Here are some ways in which AI has impacted and transformed the monitoring, tracking, and managing of logistics for an upward supply chain.
1.Improving turnaround time
AI enables businesses to have all the necessary data in one place and use it efficiently to smoothen upstream logistics, save time and resources, and reduce operational losses. Having an AI powered system in place which uses real-time processes and data can link the operations team with other units which will help in procuring materials quickly and eventually result in operational productivity and increased uptime.
2. Monitoring suppliers' blind spots
Imagine this, there is a delay in the shipment of raw materials from one of your upstream suppliers. Now this would result in the 'bullwhip effect' wherein huge complications and delays would come to the forefront and would affect the delivery to the end consumer. But now with AI, businesses can collate data from the supply chain and evaluate it together in one robust cloud. This will enable businesses to easily monitor minor yet major impacting delays from the upstream suppliers. It will also help them identify the hotspots where certain suppliers present risk. Overall, AI in upstream logistics can allow businesses to monitor risk posing suppliers and thereby make more informed decisions with the available data to increase efficiency.
3. Intelligent and accurate demand forecasting
Artificial intelligence has proved to be a boon for planners in the upstream supply chain. In due course of time, AI has navigated a path to implement intelligent demand forecasting models. This enables planners to have full forecasting visibility on the upward supply chain. It includes network strategy planning and daily route planning.
Embracing artificial intelligence for excellence in upstream logistics with IBS Software
As witnessed through the ages, businesses tend to come across complexities in their operations. However, with the advent of artificial intelligence, many pain points of upward supply chain operations have been relieved. The global leader, IBS software, with its cutting edge iLogistics technology platform leveraging on artificial intelligence does the same or rather more! With its data-driven supply chain insights, the software helps you to keep tabs on your multiple suppliers and also on the quantities of materials procured. Powered by AI, the platform and tools by IBS Software enable you to make smart decisions and thereby improve efficiency in the upward as well as downward supply chain.