Artificial Intelligence is the ability of smart computers to perform intelligently without any user input, i.e. without human interference. Machine Learning allows self-performance of machines similar to a human intellect which assists in monitoring and handling tasks of day-to-day life making human life much more manageable.
How is AI Transforming Supply Chain Management Today?
Artificial Intelligence is blooming globally in all sectors be it medicine or industries all have encouraged AI to advance their workplace. It helps to analyze and manage workplace management efficiently that reduces loss and improves productivity. Supply Chain management is the most critical factor for any business’s growth as it deals with the management of raw material to that of finished goods, i.e. the complete flow of production comes under it. So, for any manufacturer, it is crucial to manage the supply chain effectively.
Artificial Intelligence in Supply Chain Management
Let us look into few important ways how Artificial Intelligence is becoming an integral part of Supply Chain Management
- Artificial intelligence technology helps to anticipate the future demand of a particular product in the market which is very helpful for a manufacturer to manage production cost and reduce future loss. From previous data AI predicts the future demand for specific production thus increases demand forecasting accuracy of any product or services.
- Machine learning algorithm helps to monitor supply chain adequately and keeps a check on every production steps to avoid any loopholes which can lead to loss of raw material or production cost.
- It helps to reduce freight cost and transportation cost for movement of raw materials as well as transportation of finished goods to the market. AI also improves supplier’s delivery performance and minimizes the risk of loss in logistics management.
- Artificial Intelligence helps in proper management of physical assets as well as reduces the damage and loss of these machines. It decreases the maintenance cost and assists in better management of production process.
- Artificial Intelligence helps in better production planning based on previous statistics to improve productivity. It also keep check on the manufacturing strategy to meet the set standard of organization, thus helps to improve the overall ROI and reduce unwanted loss to the company.
- Machine learning along with advanced analytics helps to manage supply chain management very effectively taking into consideration each aspect of the supply chain, IoT sensors and real-time monitoring makes supply chain management better and improved.
Supply chain Management is very complex as well as a crucial part of business growth, AI in Supply Chain Management is revolutionizing every aspect of it today.