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AI to Supply Chain

Understanding the importance of supply chain management requires an awareness of the full scope of this concept and how it can impact business operations. Often, the terms supply chain management and logistics management are used interchangeably, but they're different concepts.

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AI to Supply Chain

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  1. Introduction to AI in Supply Chain With the help of AI, it delivers many advanced solutions to inventory managers and allows them to manage the process more efficiently. The technology automatically orders the right flow of items to fulfil manufacturing demand and can ensure that the correct amount of raw material gets in and out of a warehouse.

  2. Importance of Supply Chain Management • Understanding the importance of supply chain management requires an awareness of the full scope of this concept and how it can impact business operations. Often, the terms supply chain management and logistics management are used interchangeably, but they're different concepts. • While logistics management refers to how companies handle any set of complex operations, supply chain management deals specifically with optimizing the flow of goods and services. • This function includes the physical flow of materials involved in producing a good or service, developing, sourcing and manufacturing. It also involves information flow, ensuring access to the data required to make these activities happen in a timely, systematic manner.

  3. Challenges in Supply Chain Management • Rising risks in the supply chain Risks in the supply chain primarily arise from volatility in the markets. • Changing consumer demand, trade wars, raw material shortages, climate change, stricter environmental regulations, economic uncertainties and policy changes, industrial unrest, etc., contribute to supply chain management risks and challenges. • Unexpected delaysGlobal supply chains inevitably involve large distances and many steps, making them vulnerable to delays. Long lead times for goods make the shipments susceptible to unexpected delays. • Cost control. • Increasing freight prices. • Difficult demand forecasting. • Digital transformation.

  4. Benefits of AI in Supply Chain: • Access to Low-Cost Suppliers: AI-powered supply chain systems allow organizations to identify reputable, low-cost suppliers. This helps them keep operations lean without sacrificing quality, speed, or service. • The Ability to Search for Items and Part Specifications:Gone are the days when organizations had to manually find product information via a database. With AI, they can now quickly search for and view item dimensions and other specifications.

  5. 3. Enables You to Identify Freight Lanes and Low-Cost Pricing​Organizations are constantly looking for ways to conserve costs and improve service. AI can help them get there. Take shipping, for instance. Using AI technology, business leaders can identify economical freight solutions across channels. • 4. The Ability to Model Historical Demand and Forecast SalesStaying one step ahead of customer demand is one of the primary ways organizations optimize their operations and control their inventory. • 5. Enables You to Identify Obstacles Early​With the increased data availability that AI affords, organizations can identify obstacles that might impede operational improvements. Examples of these obstacles include: • Product or item data gaps. • Inaccurate logistics documentation. • Shipping or delivery route inaccuracies.

  6. Conclusion: AI is More Accessible Than Ever​ • The field of AI is rapidly changing and expanding. Today, you’ll find AI everywhere you turn, from your favourite search engine to your company’s CRM system. Implementing one of the top manufacturing ERP systems, or another enterprise system with embedded AI, can help you improve your supply chain operations both operationally and financially. • With smarter tools at their fingertips, employees can work more effectively, backed by accessible and relevant data. To learn more about the future of artificial intelligence in business and the benefits of AI in ERP, contact our enterprise software consultants below.

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