Page 8

Impact of Artificial Intelligence & Big Data on Supply Chain Management Supply chain management forms one of

and make processes more efficient. This data along

the important branches of operations management.

with AI helps to understand purchase patterns and

It involves the flow of raw materials, inventory,

behaviors to predict the demand of products in the

goods, and information efficiently. Today, there is

future. Retailers can refine product availability and

a lot of hype about Artificial Intelligence (AI) in

increase customer satisfaction.

Supply Chain Management (SCM) these days due to its huge potential. AI is the shrewdness displayed by machines in making decisions. Often people confuse AI with automation. However, both are completely different concepts. Automation is a hardware or software which is capable of doing repetitive things on its own whereas AI takes decisions based on situations. Automation may or may not be based on Artificial Intelligence.

This new disruptive technology of AI and big data is also set to disrupt logistics industry. It has given rise to the trend of ‘Anticipatory Logistics’ which reduces the delivery time by forecasting demand before an order is even placed. Anticipatory logistics also serves supply chain risk management. AI estimates maintenance requirements and potential uncertainties, alike transportation and disruption

management

predictions.

We are living in a highly connected world where a

Manufacturing and transportation businesses use

lot of data is being generated every minute, and this

AI to speculate factory and vehicle maintenance.

big data gives us immense opportunity to optimize 6

Profile for SCOMC-IIMR

KAIZEN - March 19 Edition  

We are pleased to publish the Volume: 3 Issue no:03 of ‘Kaizen’ – monthly magazine of Supply Chain and Operations Management Club IIM R. The...

KAIZEN - March 19 Edition  

We are pleased to publish the Volume: 3 Issue no:03 of ‘Kaizen’ – monthly magazine of Supply Chain and Operations Management Club IIM R. The...

Advertisement