What is AI?
Artificial intelligence or more commonly referred to as AI, is a simulation of human intelligence processes by machines or computer systems. To put it simply, these systems can be trained to perform tasks normally done by humans. More advanced AI now make decisions based on patterns they identify.
Also see: The Right Way to React to Robots and Automated Labor in General
AI in Supply Chain
It is no secret that with advances in technology, AI is becoming increasingly relevant. Companies are improving their operations and staying competitive in an ever-changing market. With this, they are turning to AI-based solutions to shorten and improve processes and make more informed decisions.
Forecasting
One of the key areas where AI is making an impact is in forecasting. For example, AI analyzes sales and weather patterns, and make accurate predictions about demand. They help companies avoid having too much or too little of the items in their inventory. Additionally, companies are able to identify potential disruptions in their supply chains and take appropriate action to reduce their impact.
Logistics and Transportation
Optimizing routes for transportation, taking into account factors such as traffic, weather, and capacity constraints are only some of the benefits of AI-based solutions. Companies also reduce costs and improve delivery times with the data they have on-hand. In addition, they monitor and track shipments in real-time, enabling companies to quickly identify and resolve any issues that may arise.
Procurement
Procurement and supplier management makes good use of AI. One can analyze supplier performance and risk to help companies identify the best suppliers and negotiate better deals. Once a system is in place, you can use it to automate the purchase order process and reduce the amount of time and resources needed to manage suppliers.
Is AI Helpful at All?
Overall, AI is becoming an integral part of supply chain management. It is helping companies to improve efficiency, reduce costs, and make better decisions. As technology continues to advance, the potential for AI to transform the field of supply chain management is only going to grow. Companies that are able to embrace AI and incorporate it into their operations will be well-positioned to thrive in an increasingly competitive market.