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Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

App Insights: How can artificial intelligence innovate supply chain management?

02-Aug-2018
App Insights: How can artificial intelligence innovate supply chain management?
We think that artificial intelligence can provide a number of benefits to innovate supply chain management. Ioana Bucin, Jérôme Bricout and I have gathered our thoughts in an Expert View on this subject, which explains how AI and SCM can play together. We also provide recommendations. Here are some key findings of our report:

SCM & automation: SCM is about a large number of complex tasks of which many are managed with software already. However, the level of automation can be increased. For example, AI can automate the supplier selection, ordering and replenishment. Another example for automation are robots that automatically pick and move goods in a warehouse.

Predictions & forecasting: AI can augment SCM applications with more advanced data analysis features that can predict potential bottlenecks, resulting from transportation delays or difficult weather conditions. Demand forecasting is another area that can be improved with the help of AI. Once companies are able to better forecast the customer's behavior, the planning of their supply chain activities will be much easier.

These examples mostly refer to the integration of AI into existing applications. That said, we see software vendors embedding more and more AI into their solutions. This will make it easier for companies to leverage AI features without the burden of building AI tools on their own. Also, embedded features may make companies less dependent of AI experts, who are very hard to find.

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