How To Use AI in Supply Chain Management
Artificial intelligence can assist with everything from demand forecasting to warehouse optimization. Learn how to leverage it for a more efficient supply chain.
Have you ever wondered if AI supply chain software could assist in your own logistics operations? Below, we’ll break down how AI adoption can enhance efficiency in your logistics networks and potentially bring down operational costs. We’ll also explore how AI can overlay atop traditional business models, improving operational efficiency without upending your business.
But first, a quick refresher: Supply chain management is a complex field that combines analyzing historical data, demand forecasting, risk management, and maintaining supplier relationships across global supply chains. Traditionally, managing supply chain operations has been the responsibility of human supply chain executives who spend years studying the business processes that keep supplies flowing.
Advances in artificial intelligence have been making a shift in this workflow. Today’s supply chain managers can benefit from implementing AI tools to assist them in their work. AI technologies can optimize processes up and down the entire supply chain, from inventory management to production scheduling to monitoring market trends.
What is artificial intelligence?
Artificial intelligence, or AI, is the simulation of human intelligence by machines. AI tools work by leveraging some combination of machine learning (ML), natural language processing (NLP), computer vision, and robotics. These tools cannot replace human cognition, but AI applications can mimic humans by analyzing large amounts of data and predicting the best way to respond to external stimuli.
Generative AI solutions like ChatGPT do not “think” when given a prompt. Rather, they analyze data supplied by their trainers or pulled from the internet and create human-like prose by predicting which word is supposed to appear in a phrase at a particular time. An AI application can do far more than generate text, however. Among other things, AI algorithms can analyze real time data, monitor inventory levels, and assist in demand planning. Such capabilities demonstrate the benefits of AI in supply chain organizations.
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