Generative AI (GenAI) creates new content like numerical data, images, texts, audio, or
videos, being reliant on the data it has trained on. GenAI could prove to be agile
co-advisor or multiplier for strengthening supply chains. GenAI tools are limited by
only how good their input data is, so they become restrained by the qualities and
availability of data from supply chain partners.
Ability by GenAI:
• It classifies and categorizes info based on visuals, numerical, or text data • Rapidly analyses and modifies strategizing, plans, and resource allocations
relying on real-time data.
• It automatically generates contents in varied forms that enable fast reaction
timings.
• Summarizes significant volume of data, extracting key insights and trends. • It assists in retrieving relevant info quickly and gives instantaneous responses
through voices or texts.
Plan: Generating simplicity With AI? Where GenAI drives values at
Planning – Demands Forecasting, Production Planning, and Risk Management.
Source: Automating vendor navigations! Where AI drives values at
Sourcing – Suppliers Management, Sourcing, and contracts.
Make Faster, more effective creations and maintenance!! Where AI drives
values in manufacturing – Product Designs, Predictive Maintenance, materials
science, and engineering!
Move: Uses GenAI to optimize logistics. Where AI drives values in
logistics – Global trades Optimizations, Logistics network designs, Last mile
dynamical route optimizations.
Steps for GenAI for startup:
1.Focusing on domains wide transforms – traditional business models and unlocking
possibilities?
2.Coordinating organization collaborations – identify the needed skills across
functions; go beyond technical roles!
3.Keep an open mind and guard against risks – Implements proof-of-concept while
taking care of data quality and hallucination risks.
4.Stays ahead by the curve – Explore the art of the possible!
How to prepare your supply chain for AI:
• Audits value creations – audits help business planners identify where AI and other
technologies investments can yield the most value!
• Creates a strategy and roadmaps for far-reach transformation that addresses the most
pressing concerns in its early stages. Creates a roadmap ensuring each project will
enable the next—and have adequate funding.
• Design a solution
• Select a vendors
• Implementations and integrations
• Remember changes in management
• Monitors and adjust
AI Capabilities in 3 different areas from the Supply chains:
1.Product Development
2.Procurements
3.Manufacturing’s
Benefits of using AI:
• Warehousing efficiency – Integral parts of supply chains
AI optimizes warehouse operations by predicting stock levels and managing
inventory. Training programs like Oracle Fusion SCM Online Training can help
professionals understand and implement these technologies effectively.
• Accurate Supply chain Inventory management
• Enhanced Safety
• Reductions Operations Costs
• On-time Deliveries and shorter Delivery times
• Better Productivity and reductions in labor costs
• improved relationships with suppliers, manufacturers, and distributors
• Reductions risks
• Improved transportation networks and routes
• enhanced decision-making capabilities
• few errors and less wastes
Challenges of AI in the supply chain:
• System complexities
• The Scalability factors
• The cost of training
• The operational Costs Involved
Disadvantages of using AI:
• Biased Algorithm -AI duplicates societal biases for race, gender, and age, which increases
social and economic inequalities.
• Disinformation – With deep fakes and online bots spreading disinformation, society faces
inconsistencies between realities and fiction, destabilizing trust in social media, news
sources, and political institutions.
• Lacks of transparency – A lack of transparency in a supply chain can damage customer’s
loyalty and strategic partnership.
• Cybersecurity risks – AI to create “new and complex types of malware, phishing schemes,
and other cyber dangers” that result in data breaches, financial losses, and reputation risks.
• Loss of human expertise – AI should not replace skilled workers and eliminate jobs, but it
can be used for dangerous, manual, or repetitive work.
AI IN SUPPLY CHAIN AND LOGISTICS EXAMPLE:
• Coupa
• Epicor
• Echo Global Logistic
• Live Person
• Infor
• Covariant
• Zebra Technologies
• HAVIs
• C3 AI
• Symbiotics
Consider exploring Oracle Fusion SCM Online Training for more information and
specialized training on integrating AI into your supply chain management.
Future of AI in the supply chain:
In automotive productions, for example, when a sensor discovers a defect, it feeds data to
the cloud production application. It immediately requests that the defective parts be
pulled from the line and a replacement ordered.
1.Challenges
• Skill gaps
• Regulation and Trace abilities
• Product development innovations
2.Value from investments
• Increase revenue growth
• Increase operational efficiency
• Reduce costs
3.Value in cognitive computing
• Manufacturing / Production
• Logistics and distribution
• Quality and preventive maintenance
4.Trends with impacts
• Cloud applications
• 3D Printing
• Internet of things
5.Investments areas
• Energy Management
• Security and Surveillance
• Inventory Management
6.Investment Initiatives
• Analytics and Clouds
• Robotics and IoT
• Cognitive Computing – Future Automation – digital operations
FAQs
1.How is AI used in the supply chains?
AI will only get more capable and reliable from here, so if current trends continue, it’s
not outlandish to think this technology could do everything today’s supply chain
managers do. Despite this potential, AI won’t likely replace humans in supply chain
management, at least not entirely.
2.How does Amazon use AI in its supply chains?
Amazon employs advanced machine learning algorithms and AI technologies to
analyze the collected data. These technologies enable personalized recommendations,
fraud detection, inventory management, supply chain optimizations, and customer
service improvements.
3.How does AI help in procurements?
Artificial intelligence (AI) allows Procurement organizations to solve complex
problems more efficiently or effectively using smart computer algorithms. AI can be
embedded into a number of software applications, from spend analysis to contract
management and strategic sourcing.
4.How is AI used in the food supply chain?
AI optimizes production, distribution, and inventory management, reducing waste and
costs and enhancing resource allocations. Smart food supply chains integrate
technology and data to improve efficiency, traceability, and responsiveness from farm
to table.
If you are looking for training, please feel free to reach us at IQstream (+91 – 9663770766 or +91 – 9740217006).
