The integration of technology in supply chains is a global phenomenon these days. A recent report predicted that artificial intelligence (AI) in Supply Chain Management (SCM) solutions will be close to $15.5B globally by 2026.i
AI technology and big data analytics are bringing about a digital revolution in traditional SCM methods. In this article, we will explore the reasons behind that and what are the benefits of automated supply chains.
Here are three ways in which technology creates resilient supply chains:
Accurate Predictive Analysis
Supply and demand are the key components of any business. Supply chains that employ Artificial Intelligence can be over 65% more effective with lower overall costs.ii That’s because you can predict a spike or dip in supply and demand with this technology. Thus, it might allow you to react faster and prepare accordingly.
For example, retailers in Russia used technology to determine product demand. They noticed that book sales increased as it got colder. So some online booksellers increased their inventory whenever the temperature dropped and efficiently met the demand.iii
Better Management of Up-Sets
Technology might enable you to resolve any difficult points in the supply chain. Not everything can be predicted. However, automation of processes can decrease your reaction time to supply chain disturbances.
For example, the 2021 Suez Canal Obstruction affected international trade since approximately 13% of global trade passes through there. This caused massive delays and price hikes. iv
Although machine learning and AI couldn’t stop the obstruction, these certainly helped SCM professionals to quickly formulate a plan to get back on track. Technology can give managers a bird’s eye view of the disruptions thus highlighting the areas that demand their immediate attention.
Hence, analysing data using Artificial Intelligence can improve the resilience of your supply chains by mitigating risks and minimising uncertainties.v
This type of practical application of data analytics tends to enhance transparency while decreasing the overall susceptibility to error. It can also enhance your ability to handle market turbulences.vi
Increased Connectivity and Mobility
AI can enable many micro and macro shifts in the Supply chain by giving companies greater data visibility (static and real-time data).
Consider an eCommerce business for example. By using an automated supply chain, an employee can check the warehouse stock at any time from anywhere and be confident that the numbers are right. This real-time technology can significantly reduce errors in interdepartmental transactions. Hence technology might make it easier to connect global units of the supply chain.
Improve your SCM Expertise with a Masters Degree
As technology becomes more deeply integrated with the supply chains, there is a change in the type of professionals needed for the job. Especially after the pandemic, most companies are looking for ways to reduce the margin of error in their supply chains.
The demand for professionals trained in AI and its applications is increasing.vii So acquire a Masters degree from a prestigious institution like SNATIKA while working. That can equip you with the current best knowledge so that you can be a part of this digitised future of supply chain management.
You can finish the prestigious UK Masters within a year at a reasonable cost along with other benefits. Check out the program here.