How can AI help in supply chain (planning)?
Artificial intelligences like ChatGPT are conquering the market. We have been working with AI for a long time and have listed some examples in which areas AI promises improvements in supply chain management and supply chain planning.
An AI optimizes itself
An AI works by using algorithms and models that enable it to recognize and learn patterns and connections in large amounts of data. These models are trained to make decisions and predictions based on the data provided to them. The AI will make decisions automatically and improve over time by learning from experience.
Prediction of demands
AI models can analyze historical sales and inventory data and identify patterns to predict future demand and optimize inventory planning. AI can also automatically generate orders and optimize inventory to avoid overstocking and understocking.
Automation of processes
AI can automate processes in SCM to save time and costs. Examples include automatic order generation, inventory order monitoring, automatic delivery tracking, and automatic billing.
Transport optimization
Through the S&OP process, companies can better align their revenue and cost forecasts, which can help create more accurate financial planning and therefore minimize financial risk.
Optimization of supply chain processes
AI can help optimize supply chain processes by analyzing and leveraging data from various sources such as suppliers, manufacturers, and logistics service providers to optimize processes and supply chain planning. AI can also help identify bottlenecks and risks in the supply chain and provide suggestions for supply chain improvements.
Quality control
AI can help monitor and control the quality of products by analyzing images, videos and other data to detect deviations from standards. AI can also help detect production errors by detecting deviations from production standards and adjusting the manufacturing process accordingly.
Prevention of silo planning
AI can help optimize transportation routes and plan deliveries to make deliveries more efficient and cost-effective. AI can also help optimize transportation capacity by automatically selecting carriers and transportation routes and optimizing routes to optimize delivery timing and costs.
AI can learn to make decisions in the supply chain and make suggestions to the user. AI can very precisely identify potential risks and bottlenecks, communicate them to the user, and suggest possible solutions. In this way, AI supports employees and automatically contributes to a more efficient, secure supply chain, where service levels are increased, inventory is reduced, and disruptive events (the expected and unexpected) are resolved quickly.