Artificial intelligence, or AI, could be the next big industry-changing technology for supply chain. In recent years, market leaders like Google and Apple have mass acquired AI startups. But, this is only the beginning for this disruptive technology. In this post, we’ll talk about 3 ways AI will benefit supply chain.
What is artificial intelligence? Although complex and eerily human-like robots may come to mind, the definition is simple. AI can imitate free human thought and make their own decisions. This differs from traditional machine intelligence, which is procedural. There are two main types of AI: augmentation and automation. In augmentation, AI aid humans in tasks without complete free reign. Automation allows AI to work without human intervention.
So, how can this technology shake up your supply chain?
AI can make forecasting and scheduling faster and more accurate. There are virtually no limitations on data access. As a result, it can take into account a variety of changing trends. Without limits, the demand schedule created by AI can be far more complex. Also, AI can eliminate human error to make decisions faster with greater accuracy. As a result, AI has the potential to bring almost perfect planning abilities to your supply chain.
One of the keys to AI is its ability to learn and adapt. With deep learning, AI is perfect for tedious or human error-prone processes. For example, AI could improve identifying stock levels or fulfilling orders. In addition, this technology could use vast amounts of past data to learn from mistakes. In the event a mistake is made, it won’t be made again. Essentially, AI can make better decisions more quickly. This streamlining could be applied across your supply chain for amazing results.
Another aspect AI has great potential in is logistics optimization. The use of driverless vehicles can reduce lead times and human labour costs. Also, these vehicles are more efficient and accurate than humans. Recently, Tesla revealed plans to release an electric semi truck with some driverless ability. With development, this has the potential to revolutionize transportation in your supply chain.
In conclusion, the future of AI and supply chain is bright and approaching. This technology can change the industry with speed and accuracy. As technology develops in this changing world, supply chain is bound to change with it.