Welcome to Industry 4.0, considered by many experts to be the fourth industrial revolution. Artificial intelligence and data analytics are a big part of it and are already changing how supply chains work. Here are just some of the ways they make getting a product from the manufacturer to your home cheaper and more efficient.

Generative design: An algorithm receives design parameters (such as cost and information on available materials) and generates thousands of options to find the best one.

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Order management: AIs handle complicated order information from multiple channels.

Quality control: Sensors inspect products for defects.

Predictive maintenance: AI monitors systems and machines for early signs something is about to break down, preventing expensive factory shutdowns.

Compliance management: AI manages the red tape when the same product is sold in different markets with different regulations.

Customization: AI may be used to create such customized orders as bespoke suits and made-to-order shoes. And in a process called “reshoring” or “nearshoring,” products made far away can be customized closer to the sale point at the last minute.

Stocking: Digital cameras monitor inventory levels and AI robots pick, sort and pack products.

Finding damaged packages: Machine learning models scan and analyze images to spot damaged objects.

Helping workers with wearable technology: Smart glasses “read” barcodes. Natural language processing helps humans work hands-free to pick items more safely.

Supply chain visibility: Internet of Things (IoT) devices provide instant information about such conditions as the location and temperature of shipments. Businesses can spot bottlenecks, manage disruptions in real time and make data-driven decisions.

Collaborative supply chains: Multiple companies use data and analytics to work together to plan and execute supply chain operations. The cooperative approach allows the companies to serve similar customers or achieve a common goal.

Optimal routes: Vehicle routing algorithms (without problems) use such factors as capacity, delivery priorities and time windows to plot the most efficient routes.

Real-time conditions: AI can monitor weather, traffic and other conditions to reroute as necessary.

Autonomous vehicles: Truck platooning technology can permit a group of vehicles to operate extremely closely, reducing wind resistance and decreasing fuel consumption for transportation between factory and warehouse or retailer. Smaller vehicles will be used for deliveries. Algorithms optimize routes while AI helps vehicles avoid collisions.