Guide To AI In Supply Chain Management

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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.
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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.

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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.

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Benefits of AI in Supply Chain

1. 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.
2. The Ability to Search for Items and Part
   SpecificationsGone 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.

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• 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.

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Conclusion
AI is More Accessible Than Ever?

• The field of AI is rapidly changing and
  expanding. Today, youll find AI everywhere you
  turn, from your favourite search engine to your
  companys 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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