The Role of AI in Understanding Multi-Tiered Supply Chains

Jan 12

Artificial intelligence (AI) is revolutionizing the way companies operate, including those in the supply chain industry. That’s why KYG Trade is utilizing AI to facilitate trade compliance and streamline company multi-tier supply chain operations.

Globalization 2.0, as it is being called, is the use of technology to connect businesses and consumers across the globe in new and innovative ways. AI is playing a significant role in this new era of globalization by providing companies with the tools they need to navigate the complex and ever-changing landscape of international trade.

KYG Trade, a company specializing in the use of AI in supply chain management, is at the forefront of this movement. They use a combination of machine learning and natural language processing to automate the process of trade compliance, making it easier for businesses to comply with the various regulations and laws that govern international trade. This includes things like tariff and ECN classification, import/export regulations, and compliance with admissibility requirements.

One of the major challenges in supply chain management is the sheer complexity of multi-tier supply chains. These chains involve multiple suppliers, manufacturers, and logistics providers, all working together to bring a product from the manufacturer to the consumer. Traditional computer scripts alone are not capable of simplifying these complex systems, but with the use of AI, KYG Trade is able to optimize and streamline these chains for maximum efficiency.

For example, in a traditional computer script, if a product requires multiple components from various suppliers, the script would have to be hard-coded to accommodate how supplier data is currently organized, including the structure of the bills of materials used to track raw materials and components. However, in a rapidly changing business environment, suppliers can change rapidly. and so can the structure of their data. In such cases, the script would have to be updated manually, which can lead to errors and inefficiencies. This limitation becomes more prominent in multi-tiered supply chains as it involves multiple levels of suppliers and logistics providers.

Moreover, traditional computer scripts can only be programmed to handle a specific set of rules and regulations. In the case of international trade, laws and regulations are constantly changing, and it can be difficult for a script to keep up with these changes. This can lead to a business unknowingly breaking laws and facing penalties.

To overcome these challenges, KYG Trade's AI-powered platform can analyze large amounts of data from various sources and identify patterns and trends that can be used to improve the supply chain. This includes things like identifying potential regulatory problems, forecasting potential problems based on upcoming regulations, and helping importers to optimize their supply chains from an ESG perspective. AI can also tell the difference between regulatory changes that are relevant and regulatory changes that don’t impact your business, reducing risk, and allowing companies to efficiently allocate resources.

In addition, the platform also allows businesses to collaborate with their suppliers and partners in real-time, allowing for a more seamless and efficient supply chain. This can lead to improved relationships between suppliers and manufacturers, as well as a reduction in costs and an increase in overall efficiency.

One of the significant benefits of using AI in supply chain management is the ability to check the work of suppliers. With the use of natural language processing, AI can read product attribute data provided by suppliers and assess it against compliance determinations.

KYG Trade's AI-powered platform can be used to analyze product descriptions, certification records, and other documentation provided by suppliers to ensure compliance with relevant laws and regulations. This can ensure the suppliers are using the correct export and import classification numbers. By automating this process, KYG Trade can help businesses to avoid costly penalties and reputational damage caused by non-compliance, even at the farthest rungs of a multi-tiered supply chain. Furthermore, it also helps to build trust and strong relationships with suppliers by ensuring that they are meeting their compliance obligations. Globalization 2.0 has arrived.

Ready to move to the forefront of the AI revolution in supply chain management? By utilizing AI to automate trade compliance and streamline multi-tier supply chains, your business will be able to navigate the complex world of international trade and improve its bottom line. Schedule a demo with us today by clicking or tapping below, and see why it’s never been easier to Know Your Goods.