Thursday, October 21, 2021

ROLE OF ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN MANAGEMENT

 

How Artificial Intelligence Can Benefit Supply Chain Management




        For months now, the COVID-19 pandemic has wreaked havoc on global supply chain management, slowing economic growth. The rise of Artificial Intelligence and Machine Learning (AI/ML) is changing the face of the supply chain industry with their phenomenal speed, accuracy, and efficiencies. Businesses today must run at maximum productivity with fewer uncertainties and errors in an increasingly competitive environment. Therefore, Artificial Intelligence (AI) in Supply Chain Management & Logistics is an essential component of enhancing productivity, quality, lowering costs, and boosting output. By leveraging AI/ML, enterprises are gaining access to all aspects of the supply chain beyond what their own capabilities can provide. COVID-19 has been causing economic growth to slacken for months now due to its effects on supply chain management. According to the Institute for Supply Chain Management, approximately 75% of the companies reported having experienced some sort of supply disruption as a result of Coronavirus. For months, transportation restrictions have constrained the flow of supplies. 


In this article, we list the key benefits of artificial intelligence in supply chain management. 


Management of Accurate Inventory: Accurate inventory management with AI-driven tools can help to analyze and interpret huge datasets quickly by forecasting supply and demand in real-time. It can also be crucial in limiting overstocking, inadequate stock, and unexpected stock-outs.


Efficiency in Warehouses: AI systems have the capability to solve a wide variety of warehouse issues, more quickly and accurately. Therefore, the involvement of humans is eliminated to simplify compound procedures, thus speeding up the process. It thus saves time and lowers warehouse staffing costs. 


Improved Safety: AI-based automated data analysis makes workplace safety easier to understand and informs manufacturers of possible risks. Automated data systems for tracking stocking parameters help in keeping warehouses safe and make the company compliant with safety standards since they provide the necessary information to update operations.


Reduced Operations Costs: In every business organization, maximization of utility from minimal investment is the basic premise. One of the biggest benefits AI can offer is this. Customer service desk to the warehouse, its automated intelligent operations deliver error-free work execution with reduced workplace incidents. The installation of AI-enabled robots in warehouses can enhance speed and accuracy while increasing productivity. 


On-Time Delivery. Supply Chain Management can reduce the occurrence of human errors by using Artificial Intelligence. This reduces turnaround time by facilitating on-time delivery of goods to customers. Automating systems can enable organizations to reduce the effort of meeting delivery targets, removing operational bottlenecks. 

1 comment:

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