You know the role of artificial intelligence, or AI, is growing when it comes to business activities. In fact, it has been a hot topic for a number of years. It’s predicted up to 40 percent of all enterprise applications are going to include some type of AI by 2021.
With this in mind, you may wonder how it impacts supply chain intelligence. This is a great question.
The Impact of AI
Supply chains are a type of demand-supply network. They consist of the following components: analysis, inventory policy, estimating supply and estimating demand. In most cases, the majority of business questions related to supply chains and AI are going to fall within three groups:
- Prescriptive analytics: What actions need to be taken?
- Descriptive analytics: What is happening or has happened?
- Predictive analytics: What is going to or likely to happen?
What’s the Goal of AI for the Supply Chain?
It’s important to remember the entire purpose of supply chain intelligence is to help integrate decision-making that is based on facts and information. This helps drive improvements, as well as organizational performance, rather than just acquiring more tools to use. AI is making this possible because it’s integrated into supply chain processes and technology.
AI is still a developing technology. However, it’s one that is changing industries and businesses all over the world. Take some time to learn more about AI and supply chain intelligence and the impact it will have in the future. By being informed, you will be ready to incorporate this into your own business.