Oracle AI Boosts Retailers’ Supply Chain Risk Mitigation

According to Oracle, its new cloud solution provides retailers with AI- and data-driven intelligence to navigate complex supply chain and vendor relationships, with the goal of mitigating financial, operational, and reputational risks. The company claims the solution enhances supplier coordination and compliance by allowing retailers to manage merchandising operations globally, adhering to compliance standards and sustainability goals from pre-selection through order fulfillment. Features include categorized activity lists for workflow management and customizable audit notifications. Oracle also states that planned AI digital assistant capabilities are under development to reduce manual effort and save time for retailers.

• Enhanced Data Sharing and Collaboration: The company claims the solution fosters transparency and better coordination by enabling the sharing of practices, policies, and critical information with suppliers.
• Sustainability and Compliance: Oracle states retailers can collect sustainability certifications, quality assurances, and compliance audits and assessments for more informed decisions.
• Evaluation and Pre-selection: The solution allows for evaluating, scoring, and grading items to pre-select and continuously monitor suppliers, supporting ongoing compliance, according to Oracle.
• Note: The press release did not include specific performance metrics or benchmarks related to the solution’s impact on retailers’ supply chain efficiency or cost savings.

Retailers globally continue to face significant supply chain challenges, including natural disasters, geopolitical instability, and fluctuating consumer demand, leading to increased costs and longer wait times. Industry reports indicate that the supply chain management software market, valued at an estimated USD 26.2 billion in 2022, is projected to grow to USD 47.51 billion by 2028, underscoring the pressing need for advanced solutions in this sector. Major players like SAP and Blue Yonder are also actively enhancing their SCM offerings with AI and automation to address these complexities. Oracle’s offering aims to position itself within this competitive landscape by focusing on improved collaboration and risk mitigation, areas where many retailers still struggle.

Oracle plans to further develop AI digital assistant capabilities for the solution, aiming to streamline retailer operations and save time. The direct integration of supplier sites from Oracle Retail Merchandising Foundation Cloud Service with Supply Chain Collaboration is expected to enable the automatic creation of product records, simplifying data synchronization. Retailers considering this solution will likely be watching for concrete case studies and quantifiable benefits as the AI capabilities evolve. More information is available on Oracle.com/retail and the main Oracle website.