While data sharing remains a challenge, many organizations already benefit from two key things that AI does now for supply chain management. Supply chains perform a series of actions starting with product design and proceeding to procurement, manufacturing, distribution, delivery, and customer service. “At each of these points lie big opportunities for AI and ML,” says Devavrat Bapat, Head of AI/ML data products at Cisco. That’s because the current generation of AI is already very good at two things needed in supply chain management. The first is forecasting, where AI is used to make predictions about downstream demand or upstream shortages. Moreover, algorithms can detect one or more events they recognize as precursory to failure, and then warn assembly line operators before production quality falls short. The second is inspection, where AI is used to spot problems in manufacturing. It can also be used to certify materials and components, and track them through the entire supply chain. Ultimately, AI will optimize supply chains to meet specific customer needs for any given situation. The enabling technology exists but the remaining challenge is it requires a level of data sharing that can’t be found in supply chains today. In the meantime, many companies continue to reap the benefits of improved forecasting and inspection.
Full story : What AI already does well in supply chain management.
