While Artificial Intelligence is not the be-all solution for all of the world’s woes, it is fast proving to be an indispensable tool that can be applied to nearly every field, including supply chain management. It can be wielded to greatly ease some of the woes associated with logistics and value chain operations today. With a daily-increasing complexity in supply chain processes, there is a need for automating them to increase efficiency and reduce the margin of human errors.
AI can streamline various supply chain activities by managing large volumes of data from different sources, enabling organisations to identify patterns and make proactive decisions. This technology enhances transparency and helps companies navigate global regulations, such as sustainability and ethical labour practices.
AI’s applications in supply chains include demand forecasting, risk management, and supplier selection.
For instance, AI can predict product demand by analysing historical data, helping companies produce the right volume of goods. It can also assess risks like weather delays and maintenance issues to mitigate their impact. Additionally, AI evaluates suppliers’ performance and reliability to recommend the best partners.
Luxury brand Karl Lagerfeld, for instance, uses AI to automate allocation, improving planning accuracy and optimising stock placement.
Future supply chain strategies must integrate advanced technologies like AI and machine learning. AI facilitates the creation of resilient supply chain networks by enhancing inventory management, process efficiency, and overall capacity. According to Adheer Bahulkar from Accenture, AI-driven supply chains could involve hyper-automation with robotics that self-monitor, self-learn, and self-correct processes from manufacturing to transportation.
Looking ahead, AI will likely play a significant role in achieving end-to-end visibility and interconnected systems within supply chains. AI-driven systems will help minimise waste and maximise resource efficiency, promoting sustainable practices.