Scribd
Upload
36 views3 pages

Machine Learning in Supply Chain

The document discusses how machine learning can be used in supply chain management to optimize operations, forecast demand, plan goods movement, manage suppliers and documentation, and ensure quality. It also covers challenges of using machine learning like needing reliable data and testing models. Several use cases for machine learning in retail and manufacturing supply chains are provided.

Uploaded by

Manmith
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
36 views3 pages

Machine Learning in Supply Chain

The document discusses how machine learning can be used in supply chain management to optimize operations, forecast demand, plan goods movement, manage suppliers and documentation, and ensure quality. It also covers challenges of using machine learning like needing reliable data and testing models. Several use cases for machine learning in retail and manufacturing supply chains are provided.

Uploaded by

Manmith
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
You are on page 1/ 3

HIS GROUP

Implementing Machine learning in supply


chain using warehouse management software
y Cha

Machine learning is a type of artificial intelligence that allows an algorithm, system or


piece of software to learn and adjust without being explicitly programmed to do so. This
allows technology to teach itself over time, so that it can improve operations.

Machine learning typically uses observations or data to train a computer model.


Patterns in the data, combined with predicted and actual outcomes are analyzed
through machine learning and used to improve how the technology functions. This cycle
repeats, further refining the technology as it’s exposed to more information.

Machine learning has several applications in the supply chain, including data analysis,
supply chain optimization, cost reduction, planning and forecasting.

How Machine Learning Relates to the Supply Chain

Modern, international supply chains generate vast amounts of complex data. Machine
learning can analyze this information and use the findings to enhance supply chain
management (SCM).

O pti mi ze the Spee d of the Suppl y Chai n

Machine learning can analyze timings and handovers as products move through the
supply chain. It can compare this data to benchmarks and historic performance to
HIS GROUP
identify potential holdups and bottlenecks and make suggestions to speed up the supply
chain.

Forecast Likely Demand from Customers


Data can be sourced from many areas like the marketplace environment, seasonal
trends, promotions, sales and historic analysis. Machine learning will combine this data
to predict demand for specific goods and help to manage the sourcing and manufacture
of those products.

Plan the Movement of Goods Based on Demand


Efficient supply chains rely on products being in the right place at the right time.
Machine learning can assess customer requirements and optimize the upstream supply
chain. It matches the timely supply of goods with marketplace demands.

Manage Suppliers and Documentation


Dealing with suppliers is one of the most challenging parts of SCM. Machine learning
can analyze the types of contracts, documentation and other areas that lead to the best
outcomes from suppliers and use those as a basis for future agreements and
administration.

Ensure Quality from Suppliers, Products and Assets


Quality is vital to good SCM as waste and faulty products create unnecessary rework
and increase costs. Machine learning can monitor how quality varies over time and
suggest improvements. This doesn’t just apply to materials and products. It can track
other areas such as shipping, supplier and third-party quality.

HISGROUP uses AI and machine learning to solve supply chain issues.

Why Machine Learning Matters to the Supply Chain

Machine learning delivers several benefits for SCM:

 Organizations in the supply chain do not need to hold as much inventory because
machine learning optimizes the flow of products from one place to another
 Costs are reduced due to machine learning driving quality improvement and waste
reduction
 Products arrive in the marketplace “just in time” for sale as a result of upstream
optimization
HIS GROUP
 Supplier relationship management becomes easier due to simpler, proven
administrative practices
 Stakeholders get more insight into meaningful information, allowing for continual
improvement and easier problem solving
How Blume Global is transforming supply chain management.

The Challenges of Using Machine Learning in the Supply Chain

Machine learning depends on reliable, high-quality and timely information. A lack of


access to good data can cause significant issues for machine learning in the supply
chain. A robust approach to collecting and analyzing data is a priority for supply chain
managers:

 All organizations in the supply chain should provide information in a consistent way.
 Where possible, SCM software should integrate with supplier and manufacturer
systems to automatically collect and process data.
 Supply chain information should be checked and audited periodically to ensure quality.
 Machine learning models should be tested and checked to make sure outputs and
suggestions are aligned with business needs and expectations.

Use Cases for Machine Learning in Retail and Manufacturing


Supply Chains
There are plenty of good use cases for optimizing a supply chain through machine
learning:

 Stock level analysis can identify when products are declining in popularity and are
reaching the end of their life in the retail marketplace.
 Price analysis can be compared to costs in the supply chain and retail profit margins to
establish the best combination of pricing and customer demand.
 Upstream delays can be identified, allowing for contingency planning or alternative
sourcing.
 Retailers can link sales and promotional activities to demand and supply planning so
that stores do not run out of stock.
 Retailers can lower storage costs due to not having to hold as much stock.
 Analysis of commodity prices and weather patterns can optimize harvesting for food
manufacturers.
 Manufacturers can increase speed to market by optimizing contracts and reducing
turnaround times with upstream organizations.

You might also like