Here’s how AI can be the game-changer in Supply Chain Management
Future managers should blend technology and business for a turnaround in logistics and supply chain management sector
Artificial intelligence (AI), as the name suggests, is a technology that imitates the human capabilities of sensing and cognition. It has become one of the revolutionary innovations of the 21st century. AI involves decision making using computing machines, based on the available information (data), recognizing patterns, iterations (feedback incorporation) and algorithms. The typical examples we see in our daily life of AI uses are: Face pattern recognition machines used in social networking sites, interactive video games (Chess-playing computers), virtual assistants that use voice interactions (Apple’s Siri/ Amazon’s Alexa/the Google Assistant, and Microsoft Cortana), to name a few. The main principles involved in AI are deep learning (machine learning/neural networks) algorithms and Natural Language Processing (NLP).
AI helps human beings in two ways: Automation and Augmentation.
Automation is generally done for repetitive works, which require minimal human intervention. Examples include Amazon’s automated warehouse operations including smart sensing and boxing customer orders. Another example is Siemens Mobility’s effort in developing a monitoring system, which is using AI in traffic lights for controlling traffic jams during busy times of the day.
In augmentation, AI assists humans to facilitate decision making (personal or commercial), without having complete control of the output. Examples include AI used in virtual assistants, data analysis for demand estimation, weather risks estimation and mitigation solutions. This is especially useful in situations where errors can creep in due to human bias.
In the supply chain and logistics industry, AI is going to be a game-changer. McKinsey & Company estimates that the economic value addition due to AI applications in the supply chain will be between $1.3tr and $2tr. Businesses today have realized the potential of AI to solve the complexities of running a global logistics network. AI is helping companies to anticipate problems and make smarter and more agile decisions. It can help predict demands, anticipate problems and bottlenecks, and thus provide better services to customers and automate compliance processing. The supply chain can be more responsive with interactive applications like chatbots, smart warehousing (robotic goods retrieval, sensing, and inventory recording), cargo sensors, route optimization, automated purchasing, financial applications, etc. The application list can go on and on, ultimately leading to lower costs and fewer problems across the supply chain network.
For a student of management who has an expertise in AI, there is ample scope in the industry. Try doing some online courses; start initially with the basics of machine learning and then move further to advance neural network techniques. If you do not enjoy computation and algorithm development, you can still have a say in this domain by knowing the latest software usages in the AI arena.
(Dr. Ajay Jha, a PhD from IIT Kanpur, has more than 20 years of combined experience in industry and academia. He is an expert in technological innovation management and supply chain operations.)
Shailja Katyal Verma
Ekta Kashyap
Diana George
Contemporary topic, MBA students may refer this.
Fashion and Retail Industries are also using augmented reality nowadays, Lenskart is very popular among youth.
There is ample scope of AI applications in current COVID 19 situation, particularly in medical science, drones are being used for monitoring social distancing.
Ever increasing role of prediction is being augmented by AI and it has the robust potential to affect most parts of business especially supply chain management. Aptly described by Dr. Ajay Jha here. Dear student scope is quite vast and promising and you can join it by becoming a supply chain specialist armed with conceptualisation and technology.
It was an amazing blog sir, we got to know some wonderful insights and how AI can help in dealing with this pandemic challenge. Thank you soo much for sharing !!
Regards
Arzoo Sharma
AI is future of world in evey sector.
The courses recommend by Dr. Ajay Jha sir are really very helpful. I personally recommend people to start the course if interested in AI.
Informative piece. This will generate some interest in machine learning.. encouraged to join the Machine Learning course in Coursera !
Thank you sir.
AI has been a game changer in every field it has been introduced, talking about supply chain then AI has simplified the global operations with its ability to maintain the efficiency level which can not be achieved manually,
For example, companies like DHL use AI and machine learning in supply chain for predictive network management. This capability analyses the different parameters of internal data to identify the top factors influencing shipment delays, this would not be possible solely with human intelligence.
Thank you so much sir for the insights. Also in this time of Corona Outbreak, as the economy has slowed down and all the businesses are affected. The employees have started working from home and because of this the trend of digitization, automation and AI will pace up. Now the companies will thrive for efficiency and scale up business in order to compensate the loss. Automation and Augmentation will play crucial role in it and in this current situation the industry will understand the importance of implementing AI and the related technologies like cloud computing, data science and cyber security.
I think this is an excellent opportunity for existing and future professionals to acquire skills to work along the technology to get optimum results for their respective organizations.
One such platform is Coursera where we can train ourselves for various domains as per the needs because this will in turn enhance our skill set and contribute to the economy in a better way.
Hope my views are relevant to the topic.
Again thank you so much
Thank you sir for bringing up this article as AI is one of the revolutionary innovations of the 21st century but never thought that it could also be a game changer in the field of supply chain management this article is one of the best article i have read on AI.
AI has bring revolutionary changes in present context, It has been put forward as a useful decision-aid tool that helps the firm connect its customers, suppliers, and Supply Chain partners by facilitating information exchange among various business entities across the Supply Chain, while replacing assets (e.g., inventory, facilities, transportation equipment) with information.
Thanks Sir for sharing such emerging topic.
Very informative sir,
Thanks for sharing your thoughts on this trending/hot topic of Business world.
I think if we look into current scenario AI is adopted by all different sector of business.
Now in upcoming future AI going to take all complex decision.
If we look into Aviation Sector….
AI playing the major role to keep tracking the client demand and help business to improve operational adequacy & customer loyalty. By adopting AI in Baggage Screening & Virtual Assistant at airports to check-in before boarding & managing predictions of passengers traffic really help the aviation business to grow.
Not only AI even Digitalisation are great opportunities for all business that allow for increased safety, efficiency and capacity.
Although AI tool is helping in the fight against COVID – 19 by predicting which patients may develop respiratory disease from the virus.
AI also driven solutions that can combine data analysis to generate more effective water treatment processes to achieve clean water and satitation for all.
Even AI transforming Agricultural and Farming. AI help to analyse farm data like weather conditions, temperature, water usage or soil condition etc and explain to the farmers to take better decision.
AI tackle the labour challenge by AI agricultural bots.
AI already been applied to education as a tool that help develop skills and testing systems.
AI also assist How to do Energy forecast?
How to increase Enery Efficiency and Enery Accessibility?
Overall I can say if we looks any field AI are soon going to capture all sectors in future. AI soon involves advance cognitive system capable of doing what machine learning system can’t. AI going to change everything.
Amit Ray, Famous AI Scientists said
“As more & more AI is entering into the world, more & more emotional intelligence must enter into leadership.”
And thank again for this bolg sir & we are looking for more blogs from you, where we can also get chance to share our view with your blog.
Great Ajay – keep it up
Thrilled to read the article. Indeed, AI is going to and in some ways has already change the way Logistics and Supply Chain Industry works.
It’s amazing to understand the intelligence technology we are surrounded with !!
Thankyou for sharing the article with us. Congratulations ?
Great information about AI. As you rightly said in the supply chain and logistics industry, AI is going to be a game-changer and also running a global logistics network. Having a good knowledge on AI can help us in the industry and make a smooth flow. Thank you sir for giving us a good direction to expand our knowledge by doing such courses.
Regards
Biswajeet
Very well written and linked sir.
As a faculty of Artificial Intelligence I must say that the article actually depicts what AI is all about:
Focused
Computationally sound
Decision Support models and so many more to add on.
Hoping to keep hearing on similar topics from you.
Very informative blog. AI is nowadays having a great impact in every sector. Knowing the importance of AI in Supply chain was of great knowledge. THANK You so much sir.