AI: Buzzword or Brilliant?
Triangle Information Management investigates the role of Artificial Intelligence (AI) in driving efficiency and profitability in the supply chain.
How AI Is Impacting The Supply Chain
Artificial Intelligence (AI) has the power to drastically increase efficiency and profitability in all areas of logistics. From forecasting delivery times to managing orders, AI has the potential to have a large impact across the supply chain.
Indeed, according to the report, State of Artificial Intelligence for Enterprises, 42% of respondents were starting to drive revenue from AI in their supply chain and operations.
Insights Furthering Supply Chain Management Productivity
Utilising the power of machine learning, supply chain managers can gain access to previously unachievable levels of supply chain management performance analysis.
Benefiting from the copious amounts of data that is produced daily within the supply chain, AI can work smarter, finding hidden patterns and solutions that can lead to improved productivity and ever-important reductions in operational costs.
Greater Forecasting Accuracy
Logistics and supply chain processes can be organised to extreme precision, with schedules and forecasts accurately identified. However, as any supply chain professional will attest, this isn’t usually the case and there are exonerating circumstances.
However, by reviewing historical delivery information with customer feedback, weather reports and logistics, AI is helping to ease the burden of supply chain logistics, providing an accurate prediction of when items will arrive at their destination – benefiting both supply chain and logistics managers, and the customer.
This greater forecasting accuracy is also leading to increased productivity within warehouses. Utilising AI algorithms, businesses can forecast and understand when orders will arrive and leave a warehouse.
This is empowering employees to work smarter, not harder, with items that will stay at the warehouse longer put further in the back, and items that won’t stay in the warehouse as long placed towards the front. For cold storage company Lineage Logistics, the implementation of AI-powered smart placements has led to a 20% increase in efficiency across its supply chain.
Designed to safely get packages to customers in 30 minutes or less using unmanned aerial vehicles, you may have heard of e-commerce giant Amazon’s recent launch of their latest delivery scheme –Prime Air. However, they are not the only business to look to forgo human couriers for greater efficiency.
Robotics company Marble delivers items across the urban environment using AI. Utilising, LIDAR technology—the same that is used in self-driving cars, Marble’s robots can navigate city pavements and avoid running into people and other hazards. The use of robots greatly reduces delivery times and is proving to be a more affordable delivery solution for businesses.
In spite of the advancements that have already been made by Artificial Intelligence in supply chain management, there is still a long way to go before we can begin to consider a completely autonomous supply chain process.
However, with advancements in computer processing power, and the greater integration of AI into a business’ supply chain – we are heading in the right direction. With its ability to perform particular tasks faster and more accurately than a person can, it’s impossible to ignore the benefits that AI can bring to supply chain management.
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