Artificial Intelligence In Supply Chain

AI Carries great potential to revolutionize the supply chain process.

Here are 5 use cases which can be used by Supply chain organizations.

  1. Improvement in data quality and reduction in the need for manual intervention
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AI in Supply Chain


Supply chain organizations usually invest a huge amount of time and effort in managing the data and improving its quality. With the increasing IoT adoption, this need is being more critical. Data management currently is dependent on manual manipulation and intervention which is time consuming and not scalable. Relying on Artificial Intelligence tech like machine learning and expert systems, Companies can create a scalable and automated approach to managing data.

  1. Demand generation through direct customer engagement
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Engaging with customers directly helps in demand generation

Through engaging with the consumer directly, AI can help is sensing significant demand of the product. Here is one recent example that demonstrates this – Olay introduced Olay Skin Advisor, A mobile application that wholly relies on Machine learning algorithms to analyze skin care needs.

The consumer first takes a (No Make-up) selfie and answers a few in-built questions about skin care. The application then performs a facial analysis and recommends products based on personal data and other inputs pre-fed by skin care experts. Apart from enabling a personal interaction with the consumer, the application also helps in demand creation.

  1. Offers interactive user experience with existing technologies
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Being conversational is the key in AI

Gartner predicts that by 2018, at least 50% of enterprise software products will include some conversational AI capabilities. The benefits of the same are clear because human interaction with complex machines will eventually become more transparent and easier with the help of conversational AI infused in existing technologies.

  1. Improves performance and extends transportation capacity
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AI can also be used in Logistics industries

The kind of disruption that the AI will make in logistics is clear when it comes to autonomous vehicles which are being piloted exclusively across continents. There will be a better driving performance as AI can be a trusted Autopilot to the driver. AI technologies can also help in reducing the accident rates by adding another layer of safety. AI can also help in providing efficient ways of tracking transportation assets thereby optimizing fuel consumption.

  1. Helps in identifying hidden patterns in market data through machine and deep learning
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Identify Raw data through deep and machine learning

Deep learning and Machine learning are the 2 major building blocks of Artificial Intelligence and also can be used in many supply chain processes. One may recall that – Machine learning is the technique of Self-learning from data and improving performance based on its own experience over a period of time. Deep learning is a type of machine learning and is highly effective as it also uncovers hidden layers within a set of data. One good example of how deep learning works is its use in facial recognition applications.