{"id":259096,"date":"2024-02-06T09:25:18","date_gmt":"2024-02-06T09:25:18","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=259096"},"modified":"2024-03-19T09:12:56","modified_gmt":"2024-03-19T09:12:56","slug":"the-role-of-artificial-intelligence-in-supply-chain-planning","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/the-role-of-artificial-intelligence-in-supply-chain-planning\/","title":{"rendered":"The Role of Artificial Intelligence in Supply Chain Planning"},"content":{"rendered":"

Are you aware that AI is quickly becoming a foundational element in modern supply chain planning?<\/span><\/p>\n

In Supply Chain Management (SCM), Artificial Intelligence (AI) is driving improvements in efficiency and introducing sustainable practices. As projected by <\/span>Gartner<\/span><\/a>, in 2023, over half of the leading supply chain companies will have incorporated artificial intelligence into their systems. This shift towards AI isn't just a temporary movement; it highlights the significant impact of AI in enhancing, simplifying and anticipating supply chain demands.<\/span><\/p>\n

According to a <\/span>report by McKinsey<\/span><\/a>, companies who adopted AI for SCM earlier have witnessed improvements in logistics costs by up to 15% and significant positive changes in inventory management. The transformative power of AI is becoming very evident as businesses struggle with the complexities of modern technology in supply chains. This evolution underscores the importance of AI's role in redefining and optimising supply chain planning for the future. <\/span>Gartner <\/span><\/a>also states that supply chain organisations expect that the level of machine automation in their SCM will double in the coming years.\u00a0<\/span><\/p>\n

In this article, we will learn about the effective and efficient role of AI in Supply Chain Planning and what it holds for the future of organisations.\u00a0<\/span><\/p>\n

Artificial Intelligence in Supply Chain Planning<\/span><\/h2>\n

Supply chain planning includes a range of activities like producing, sourcing or delivering products. However, it depends on industry to industry.\u00a0<\/span><\/p>\n

So, how exactly is Artificial Intelligence reshaping the supply chain management landscape? What has propelled us from the basic logistics of transporting goods to anticipating the future trajectories of supply chain dynamics? Dive in as we unravel the transformative role of AI in revolutionising supply chain planning.\u00a0<\/span><\/p>\n

Inventory Management<\/span><\/h3>\n

Inventory management involves the organised method of procuring, storing and distributing inventory, which includes both raw materials and final products. It has helped companies track their inventory accurately, even if the order is being sent across the globe. The biggest advantage is that it saves human work hours and allows them to focus on other work which cannot be done with the help of AI.\u00a0<\/span><\/p>\n

As per findings from<\/span> Future Market Insights<\/span><\/a>, there's an anticipated growth in the inventory management software sector at a rate of 11.2% CAGR between 2022 and 2028. By 2028, the market's valuation is projected to touch approximately $US 3,291 million. Let\u2019s see how AI helps in inventory management:\u00a0<\/span><\/p>\n