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  • Writer's pictureSertis

AI in Supply Chain management

AI technology is critical in almost every industry, especially when business operators have good plans and when they have the effective strategies as a fundamental structure to run its business, such as; Supply Chain management. Supply chain comprises of steps starting from raw material acquisition, raw material storage, production planning, goods and products to storage andlogistics. I believe all business owners bring the best intentions on every step of work and execute the best plan to its business. However, AI seems to have something to offer virtually for every step of the working process in each business. When we have a suffient amount of data collected (should be collected at least for 2-3 years) along with expertise and experienced professionals in a company, AI technology will help increase accuracy of work and effectively drive operational performance in a company.

Demand Forecasting

AI technology has the ability to help humans forecast future scenarios such as customers demand, upcoming sales, trends and can predict the deterioration of the machine in a factory (the accuracy degree of prediction result is 5-10% accuracy increased when using more data). The accuracy of forecasting will help the business to manage and prepare its product or service more efficiently, and will increase sales, while decreasing the budget, stock, space, waste, and time that will occur.

Production Planning

Manufacturing or production process normally uses up to 3 days to analyze and summarize data information in a factory in order to plan ahead with other teams with the upcoming production for the following month or week which it will take up more time to manage and solve the problem. Unexpected problems may occur in any time, such as; product order changes, machine breakdown, delivery accidents, or shortage of staff. The technology for this can make everything better, work can be done within 10 minutes with a high level of accuracy, as well as providing suggestions and back-up plans to cope with the same scenarios.

Logistic / Distribution Planning

Logistic and distribution in a business has its level of complications, for example, planning of delivery routes to deliver the products to each store by calculating the routing by workers. Nowadays, AI is able to make all the process more efficient for workers to run through the delivering process. The workers will have more time to manage other tasks efficiently as well.

Technology nowadays is becoming increasingly involved in businesses to help optimize the working process and operate businesses in more efficient ways. What's more, not only automating tasks AI helps in a business but also the work in the whole supply chain. If we adopt AI technology in the first place of running a business, it will be come a key factor for the next steps in management and help reduce waste in working process and create profits to businesses in the long run.

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