5 Things to Know about AI and Supply Chains

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Artificial intelligence is becoming more popular. According to cmo.com, 15% of businesses are currently using it and at least 31% say they would like to start using it within a year.

The reason artificial intelligence is becoming so popular is because of its ability to make tasks easier. This results in a reduction of manual labor and increased productivity.

All of this adds up to increased profits as well as more insight into what is working and what is not working for your supply chain. If you are ready to get on board with artificial intelligence, then here are five things you need to know about AI and supply chains management.

1. Plan Smarter

Artificial intelligence will look at your historical and present data. Its ability, to comprehend, perceive and form conclusions based on information received from several data sources, makes it an invaluable tool for planning how to run your supply chain.

2. AI and Supply Chain Disruptions

Disruptions in a supply chain can lead to a loss of profits for businesses. Artificial intelligence has the ability to predict where and when these disruptions will take place. It does this by analyzing data that is inputted into the system. It also draws conclusions about possible disruptions that may occur from news stories, weather forecasts, and social media.

3. Predict Product Demand

Knowing how much product you will or will not need at any given time is one of the keys to increasing profits. When you overstock you waste money. When you understock you lose money. Artificial intelligence will look at your data for new and old products. This helps it to determine how much or how little of a product is needed for distribution at any given time.

4. Take Corrective Action

Every supply chain will have its fair share of problems and AI applications can help. Artificial Intelligence will fix issues that are within its capability and provide detailed reports on how it went about correcting the problem. This reduces the need for manual intervention and results in increased visibility and productivity.

5. Communicate Findings

Artificial Intelligence will not only find the deficits in your supply chain management system. It will also send detailed reports of its analysis to all the right people, so you don’t have to waste time typing up emails or making phone calls.

Final Thoughts

The combination of AI and supply chains is a natural fit for increasing productivity and performance. However, before you dive into this bold new world of technology you should learn as much about it as you can.

There is no doubt that the ability of artificial intelligence to help you plan, analyze data, correct issues, and communicate problems to major stakeholders makes it an invaluable tool. However, it is important to learn how to monitor artificial intelligence, so you can get the most out of it. This means that you will need to spend time interacting with the people who are developing the technology.

If you would like to learn more about artificial intelligence and how it can foster productivity in your supply chain, please contact us. We are always willing and available to help you get the most out of AI for your supply chain.

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