AI Supply Chain- Artificial intelligence (AI) has the power to transform the way business is done and could contribute up to $15.7 trillion to the global economy by 2030, according to PwC. Among the industries to benefit most from AI adoption, supply chain management is in the top three, per a recent McKinsey global survey, and 76% of the survey respondents at supply chain companies have already reported moderate to significant value from deploying AI.
When implemented and used correctly, artificial intelligence can enable exceptional agility and precision in supply chains, regardless of the industry. It can also ignite a transformational increase in efficiencies and decrease in costs where repetitive manual tasks can be automated.
There are many applications of artificial intelligence in the supply chain, including AI-enabled robots like inventory-taking drones or automated-guided vehicles such as driverless warehouse carts. AI surpasses human capacity in its ability to handle the immense volume of data generated by a typical supply chain. Supply chain managers can apply the capabilities of AI to analyze and track data, clean it, detect anomalies, and generate predictions to improve and connect the supply chain from the first to the last mile.
The Business Case For Implementing Artificial Intelligence In The Supply Chain
Artificial intelligence plays an important role in optimizing the modern supply chain, and in our advancing field, business leaders who aren’t already implementing AI run the risk of falling behind and will struggle to maintain, or obtain, a competitive edge.
For example, natural language processing (NLP), a technology that helps computers understand and even interact with human speech via AI and machine learning, reduces administrative overhead in the supply chain. And among its many benefits to the field, NLP can eliminate language barriers, which in turn improves supplier relationships and customer service by allowing for smoother communications and seamless interactions regardless of the situation, locations or parties involved. AI technology is also essential to planning transportation routes for containers when there is severe weather in the forecast. In this situation, a modern, digital supply chain would be able to quickly reroute containers to circumvent the weather because the supply chain technology took into account data from accurate weather forecasts.