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Unlocking the Value of Artificial Intelligence (AI) in Supply Chains and Logistics

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Speed in decision-making. Speed in reducing cycle-times. Speed in operations. And, speed in continuous improvement. The use of Artificial Intelligence in the supply chain is here to stay and will make huge waves in the years to come.

According to Gartner, supply chain organizations expect the level of machine automation in their supply chain processes to double in the next five years. At the same time, global spending on IIoT Platforms is predicted to grow from $1.67B in 2018 to $12.44B in 2024, attaining a 40% compound annual growth rate (CAGR) in seven years.

In today’s connected digital world, maximizing productivity by reducing uncertainties is the top priority across industries. Plus, mounting expectations of supersonic speed and operational efficiencies further underscore the need to leverage the prowess of Artificial Intelligence (AI) in supply chains and logistics.

Accelerating Supply Chain Success with AI in Supply Chains & Logistics

AI in supply chains can deliver the powerful optimization capabilities required for more accurate capacity planning, improved demand forecasting, enhanced productivity, lower supply chain costs, and greater output, all while fostering safer working conditions.

The pandemic and the subsequent disruptions has demonstrated the dramatic impact of uncertainties on supply chains and has established the need for smart contingency plans to help companies deal with these uncertainties in the right way.

But is AI the answer? What can AI mean for companies as they struggle to get their supply chain and logistics back on track? Let’s find out.

ACCURATE INVENTORY MANAGEMENT

Accurate inventory management can ensure the right flow of items in and out of a warehouse. Simply put, it can help prevent overstocking, inadequate stocking and unexpected stock-outs. But the inventory management process involves multiple inventory related variables (order processing, picking and packing) that can make the process both, time consuming and highly prone to errors.

WAREHOUSE EFFICIENCY

An efficient warehouse is an integral part of the supply chain. AI-based automation can assist in the timely retrieval of an item from a warehouse and ensure a smooth journey to the customer. AI systems can also solve several warehouse issues, more quickly and accurately than a human can, and also simplify complex procedures and speed up work. Also, along with saving valuable time, AI-driven automation efforts can significantly reduce the need for, and cost of, warehouse staff.

ENHANCED SAFETY

AI-based automated tools can ensure smarter planning and efficient warehouse management, which can, in turn, enhance worker and material safety. AI can analyze workplace safety data and inform manufacturers about any possible risks. It can record stocking parameters and update operations along with necessary feedback loops and proactive maintenance. This helps companies react swiftly and decisively to keep warehouses secure and compliant with safety standards.

REDUCED OPERATIONS COSTS

Here’s one benefit of AI systems for the supply chain that one simply can’t ignore. From customer service to the warehouse, automated intelligent operations can work error-free for a longer duration, reducing the number of human oversight-led errors and workplace incidents. Additionally, warehouse robots can provide greater speed and accuracy, achieving higher levels of productivity – all of which will reflect in reduced operations costs.

ON-TIME DELIVERY

As we discussed above, AI systems help reduce dependency on manual efforts, thus making the entire process faster, safer and smarter. This helps facilitate timely delivery to the customer as per the commitment. Automated systems accelerate traditional warehouse procedures, removing operational bottlenecks along the value chain with minimal effort to achieve delivery targets.

 

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EU Launches Estimated €400M Blockchain, AI Fund to Avoid Lagging US, China

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A new fund has been set up with the aim of preventing the EU falling behind nations like the U.S. and China on blockchain and artificial intelligence (AI) innovation.

The European Investment Fund (EIF) and the European Commission have together put up €100 million (over $110 million) for a dedicated investment scheme that will make capital available to AI and blockchain projects via VC funds or other investors, EIF, an EU agency set up to indirectly fund SMEs, said in a blog post on Wednesday.

With the “cornerstone” funding in place, the EIF said private investors are expected to bring up to €300 million ($331 million) into the fund, while the total could rise further from next year, with national promotional banks being able to co-invest under the scheme.

Sifted reports that the fund could ultimately raise up to €2 billion ($2.2 billion) under the InvestEU Programme.

According to the post, the EU already spends plenty on blockchain (expected spending for 2019 is $674 million), but that is mostly directed toward research and proof-of-concepts.

The U.S. is the biggest spender, with a $1.1 billion expected spend, and China is second with $319 million, according to cited numbers from the International Data Corporation.

The new fund is aimed to address the fact that not so much is spent in the EU on developing “larger scale projects.

“Investing in a portfolio of innovative AI and blockchain companies will help develop a dynamic EU-wide investors community on AI and blockchain. By involving national promotional banks, we can scale up the volume of investments at a national level,” the EIF said.

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Gartner: top 8 supply chain technology trends for 2019

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According to Gartner, while many of these supply chain technology trends have not yet been widely adopted, they will have a broad industry impact this year.

Gartner has highlighted the key supply chain technology trends which they warned must not be ignored. Christian Titze, research vice president at Gartner, said: “Within the next five years if half of the large global companies are using some of these technologies in their supply chain operations, it’s safe to say that the technologies will disrupt people, business objectives and IT systems.”

The top 8 supply chain technology trends in 2019 are:

#1 Artificial intelligence (AI)

According to Gartner, AI technology in supply chain operations is all about augmenting workers. Thanks do developments in self-learning and natural language processing, AI is now advanced enough to automate numerous supply chain processes such as predictive maintenance and demand forecasting.

#2 Advanced analytics

Thanks to the increase in IoT data and extended external data sources such as weather or traffic conditions, analytics is going to get a lot more advanced. Gartner predicted that organisations will be able to anticipate future scenarios and make better recommendations in areas such as supply chain planning, sourcing and transportation.

#3 IoT

Gartner has reported seeing more supply chain practitioners exploring the potential of IoT. However, according to Gartner, new IoT applications involve more than just passive sensors.

#4 Robotic process automation (RPA)

Excitement has been building around RPA for some time now, and its place in the enterprise has seen a lot of maturing this year. Like AI, RPA, according to Gartner, is about augmenting workers.

#5 Autonomous things

Autonomous things use AI to automate functions previously performed by humans, such as autonomous vehicles and drones. They exploit AI to deliver advanced behaviours that interact more naturally with their surroundings and with people.

#6 Digital supply chain twin

A digital twin is a digital replica of a physical asset, whether that is a product, person, place or system.

#7 Immersive experience

Augmented reality (AR) and virtual reality (VR) technologies have long been touted as the next big thing. For all its promise mass adoption by enterprises have, in reality, always seemed to be on the horizon.

Read more at Gartner: top 8 supply chain technology trends for 2019

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Scientist Ng brings AI to manufacturing

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Artificial intelligence pioneer Andrew Ng launched a new AI company Landing.ai on Thursday.

On the same day, the company announced a strategic cooperation with electronics contractor Foxconn to develop a program that aims to bring AI and machine learning technologies to the manufacturing industry.

According to Ng’s statement, his company is developing a series of programs to help enterprises transform for the age of AI, including providing new technologies to optimize companies’ organizations structures, train employees, and more. The company’s businesses will start in the manufacturing industry.

Ng said the AI technology is conductive to manufacturing enterprises to improve quality testing process, shorten products’ design cycle, remove bottleneck of supply chain, reduce waste on materials and energy and raise output.

AI will revitalize manufacturing industry and generate jobs in the industry, he said. I In the age of AI, the employees need to accept new skills training to fit jobs that will be more complex than before, Ng added.

Landing.ai will provide solutions to some employees who are likely to be laid off, Ng said. Currently, the company is discussing the training plan with some potential partners including local governments.

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Artificial Intelligence: The next big thing in Supply Chain Management

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Imagine the endless possibilities of learning from 2.5 quintillion bytes of data generated every day. Artificial intelligence (AI), which began its journey 60 years ago is well on its course to make this implausible scenario a reality. Artificial Intelligence, is slowly taking over our lives.

From personal assistants like Siri in Apple products to stock trading to medical diagnosis, AI is able to learn from seemingly unstructured data, take decisions and perform actions in a way previously unimagined.

Businesses too are undergoing digitization rapidly. They are using AI – capable of performing tasks normally requiring human intelligence – to create a significant impact in the way businesses operate. In an increasingly dynamic environment comprising demanding customers and the need for speed, it was only a matter of time before the businesses embraced AI to obtain much needed agility. According to Accenture’s Technology Vision 2016 survey spanning 11 countries and 12 industries, 70 percent of corporate executives said they are significantly increasing investments in AI.

Artificial Intelligence in Supply Chain

Organizations are increasingly digitizing their supply chains to differentiate and drive revenue growth. According to Accenture’s digital operations survey 85 percent of organizations have adopted/ will adopt digital technologies in their supply chain within 1 year.

The key implication of this change is that the supply chains are generating massive amounts of data. AI is helping organizations analyze this data, gain a better understanding of the variables in the supply chain and helping them anticipate future scenarios. Thus, the use of AI in supply chains is helping businesses innovate rapidly by reducing the time to market and evolve by establishing an agile supply chain capable of foreseeing and dealing with uncertainties.

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