The Game-Changing Role Of AI in Supply Chain
Let’s start this blog by learning about some of the popular Fortune 500 companies that have successfully implemented and reaped benefits from AI implementation in the Supply chain.
Fortune 500 companies that have implemented AI in Supply Chain Management
Amazon:
“I kind of like to think about AI as like oxygen,” he said. “You don’t feel it, you don’t see it. It’s what makes the magic happen.”- Scot Hamilton, Amazon’s Vice President.
The biggest eCommerce fleet, Amazon is known for its sophisticated AI implementation in the supply chain. However, what comes as a surprise is, that Amazon has been using AI for more than 25 years now! How?
The integrated AI algorithm manages inventory, forecasts the demand, and optimizes the logistics. The AI integration has helped the team speed up supply chain operations by almost 75%.
To meet the daily demand of more than 400 million products, Amazon uses AI to foresee things ahead of time. It has also invested in a new robotic system like Sequoia that assists in increasing store inventory operations by 75%.
There is much more to the benefits that Amazon managed to grab, and you can read more about it here.
Ford:
Ford, one of the biggest automobile companies, has used AI + Machines Learning in multiple ways.
For example, it uses AI to detect wrinkles in the car seat;
Ford, also uses an AI-driven platform called CarStory to understand the inventory data for used cars;
It uses simulation technology, NVIDIA DGX-1 artificial intelligence supercomputer to gauge the car’s performance before it hits the track.
Given the clear evidence of technology, it is only imperative for supply chain businesses to implement AI in the Supply chain to speed up decision-making, reduce cycle times, speed up multiple operations, and pave the way toward continuous improvement.
What is AI in Supply Chain Management?
Once, overlooked and now very high in demand, “Supply Chain Management” was a term coined in the 1980s. However, it was only after the COVID-19 pandemic, that people started recognizing the significance. The prolonged shortages of various products, and personal protective equipment, led manufacturers to think of more effective ways to manage such situations. And hence, businesses turned to AI to manage their supply chains.
Artificial Intelligence in the Supply Chain refers to the process of using AI tools and other AI-driven technologies to operate, manage, and oversee business operations.
The technology integration can go beyond the traditional software operations and benefit businesses in several ways.
For example, it helps in forecasting customer demand, discovering behavior patterns, making market predictions, and a lot many other things.
Do you agree that the introduction of chatbots takes the entire shopping experience to another level?
Read More:-
https://www.itpathsolutions.com/the-game-changing-role-of-ai-in-supply-chain/
