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AI SCM Ass

AI can help automate and optimize many supply chain processes. Chatbots using AI can handle tasks like procurement, orders, and invoices, saving time. Machine learning using data from IoT devices can help warehouses better manage inventory to avoid overstocking and stockouts. Predictive analytics using real-time data can improve delivery times and eliminate spoilage for assets in transit. When combined with forecasting, AI and machine learning can make supply chain planning more accurate and reduce complexity.

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121 views5 pages

AI SCM Ass

AI can help automate and optimize many supply chain processes. Chatbots using AI can handle tasks like procurement, orders, and invoices, saving time. Machine learning using data from IoT devices can help warehouses better manage inventory to avoid overstocking and stockouts. Predictive analytics using real-time data can improve delivery times and eliminate spoilage for assets in transit. When combined with forecasting, AI and machine learning can make supply chain planning more accurate and reduce complexity.

Uploaded by

MALAYALY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Applications of AI in Supply Chain


Management
Aman Bhatnagar Artificial Intelligence September 26, 2018 | 0

Supply chain processes over the globe are going through a rapid phase of
globalization. It is also one of the challenges supply chain industry faces today as
markets are evolving at a rapid speed with customer’s demands. Globalization has
made companies work around the clock to deliver products on time.
But supply chain across industries has a lot of loopholes which if not tackled, lead to
losses. Most businesses estimate a loss of 6500 hours during a work year due
to manual tasks like paperwork, auditing, checking error & discrepancieslogisticsetc.
which needs human intervention and ultimately, account for losses.
Now, replace this with a system which gives complete automation across supply
chain where all of the tasks are handled automatically and no human resources are
required to perform the same. This automation helps in saving valuable time &
money which gets lost due to an inefficient supply chain systems.
Below are some of the top uses cases of AI in supply chain:

Supply Chain Process Automation


Using Virtual Assistant
Chatbots are very popular among enterprises as they can automate the tasks by
taking actions without the need for human intervention. These chatbots, in
combination with AI, can simplify most of the day to day tasks which are human-
dependentthird-party they consume huge amounts of time and money.
Now, these chatbots can help in with a wide variety of tasks like procurement,
placing purchase orders, updating on the status of things, payments, and invoices
etc.. These chatbots can also be personalized according to supply chain needs to
focus on problems which currently requires unnecessary manpower.
These give a personalized experience to users by allowing them to customize
dashboard, create workflows, schedule tasks, set alerts and take actions from within
the chat. Implementing chatbots is a great way how AI in supply chain is making day
to day activities effortless.

Warehouse Management Through


Machine Learning
Warehouse management can also be described as the backbone of supply chain
planning. For an efficient supply chain, two most important weaknesses of
warehouse management, overstocking & stockouts needs to be eliminated.
Stockouts and overstocking happen due to poor management of stocks in the
inventory management systems which is caused due to the inefficiency of the RFID
tags.
The passive RFID tags need human intervention for scanning and providing asset
location which requires logistics manual effort and cost. Thus, the assets in stock are
left idle to avoid these costs.
The active RFID tags are expensive to implement and are usually avoided across
large warehouses leading to no or minimal visibility
IoT devices, on the other hand, provide real-time location and environment data of
an asset and work on based of ML which can be configured to send alerts and push
messages when assets are moved or left idle for long. This allows the inventory
managers to keep the inventory levels optimized at all times and plan demand
forecasting affects.
The frequency with which these forecasting & predictive algorithms are utilized
affects their accuracy. To maximize the potential of the output from the ML activity, a
combination of real-time data from Bluetooth beacons & cloud deployed ML
algorithms should work wonders in the long run.

Predictive Analytics For Assets in


Transit
The most important factor in the success of the transportation & logistics industry is
speed and predictive analytics could be the great tool for this.
Most companies are dependent on third-party logistics service providers to get
an update on asset’s location & status which leads to an increase in the ETA and
delivery quality, thereby negatively impacting customer experience and loyalty. In
cases of mishaps, delivery of the assets gets compromised, leading to loss of
customers, even though the root of the problem still persists at vendor’s end.
For a supply chain to work continuously without any obstacles, predictive analytics is
a great enabler in making the whole supply chain process smarter and faster.
Predictive analytics can tackle the base problems of transportation & logistics via:

• Improved delivery time – Analytics algorithms can provide users with expected
ETAs based on live traffic & weather conditions. This data can be utilized to
produce optimized route recommendations that further reduce any expected
delays along the routes.
• Eliminate spoilage – Analytics algorithms can predict & provide actionable
insights about the changes/trends in the environment parameters of the assets
like Temperature, Humidity or Shock. This can drastically reduce losses due to
spoilage of assets that are in-transit leading to amazing customer experiences
and improved NPS scores.
• Demand forecasting – Forecasting & Predicting the demand based on the
multiple parameters like order/dispatch locations, time of the year, type of
product, expected ETAs is highly beneficial for all supply chains but it’s most
relevant for high value or high volume goods that need high levels of accuracy
in terms of delivery time & quality. The supply chain complexity for these goods
is further reduced by coupling the forecasting with real-time data and cloud-
based algorithm processing which, in turn, drives better planning across the
supply chain.
AI is driving the race in technology and supply chain is one the first of many
industries to be going through this rapid change. Applications of AI in supply chain
management are bringing speed, accuracy, and visibility which in combination with
machine learning and IoT based devices is allowing companies to gain a competitive
edge

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