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A well-functioning supply chain is a key to success for every business entity. Having an accurate projection on inventory offers a substantial competitive advantage. There are many internal factors like product introductions, distribution network expansion; and external factors such as weather, extreme seasonality, and changes in customer perception or media coverage that affects the performance of the supply chain. In recent years Artificial Intelligence (AI) has been proved to become an extension of our brain, expanding our cognitive abilities to levels that we never thought would be possible. Though many believe AI will replace humans, it is not true, rather it will help us to unleash our true strategic and creative potential. AI consists of a set of computational technologies developed to sense, learn, reason, and act appropriately. With the technological advancement in mobile computing, the capacity to store huge data on the internet, cloud-based machine learning and information processing algorithms etc. AI has been integrated into many sectors of business and been proved to reduce costs, increase revenue, and enhance asset utilization. AI is helping businesses to get almost 100% accurate projection and forecast the customer demand, optimizing their R&D and increase manufacturing with lower cost and higher quality, helping them in the promotion (identifying target customers, demography, defining the price, and designing the right message, etc.) and providing their customers a better experience. These four areas of value creation are extremely important for gaining competitive advantage. Supply-chain leaders use AI-powered technologies to a) make efficient designs to eliminate waste b) real-time monitoring and error-free production and c) facilitate lower process cycle times. These processes are crucial in bringing Innovation faster to the market.
INTRODUCTION
Supply chain management (SCM) is one of the most challenging fields which emphasizes interactions among different sectors, primarily marketing, logistics, and production. Therefore, success in SCM lies in the overall success of any business. However, with the consistent changes in business practices like lean management and just-in-time philosophy both in production and logistics, globalization, adverse events i.e. frequent natural disaster, political instability, etc. SCM always need to develop an adequate solution to mitigate such challenges. In recent years technologies like Artificial Intelligence (AI) is been proved immensely valuable to SCM.
As the name suggests AI defined as the...