AI to Tackle Monetary Waste and Volatility in Supply Chain Management

AI to Tackle Monetary Waste and Volatility in Supply Chain Management

Logistics Tech Outlook | Tuesday, May 28, 2019

The advent of automated technologies has presented the supply chain management space with a host of unique benefits and challenges too. Most of the technologies aiming at mitigating risk can contribute to the workload of supply chain professionals and restrict their visibility to what is going on down the supply chain of an organization. The supply chain technology space is overpopulated, with solutions that can overwhelm officials in the supply chain such as planners and risk specialists with alerts and data.

The underlying problem in supply chains is high volatility. Mainly when we look at space for consumer goods, there is a tremendously high volatility on both the supply side and the demand side. Software that uses an algorithm based on rules to address this volatility in the supply chain may be too rigid to assist supply chain professionals. AI is a powerful technology, and its learning ability over time allows it to add value and accuracy to the insights that can be applied. But that isn't enough to have a positive impact on this space for an AI solution. Professionals not only need an "alert" to tell them what to do, but they need to know why a solution made that recommendation.

This is instrumental in encouraging the adoption of artificial intelligence in the supply chain, especially as professionals find themselves comfortable with the idea that an AI solution will not substitute their jobs. It's about the increase. This is not about elimination, noting that any solution used by this industry must show immediate benefits by limiting the number of capital expenditures tied up in inventory.

But in the area of human capital, AI has the most significant opportunity to tackle commercial waste in supply chain management. These technologies need to be able to increase the ability of a professional to do their job efficiently. AI-powered supply chain management solutions promise process fidelity.

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