Things You Need to Know About AI and Supply Chain Management

July 18, 2018
Artificial Intelligence

You have just walked out of your house and forgotten to turn off the lights. You take out your smartphone and ask your voice-activated assistant to do it for you without having to step back into the house. How did it happen? The world as we know it today has entered a realm of endless possibilities thanks to Artificial Intelligence. A machine that is capable of replicating human intelligence to perform everything from the most mundane tasks to running businesses successfully, AI has seamlessly integrated into our lives.

supply change management

All this began, 60 years ago when computers started learning ‘checkers’ strategy in 1956 at Dartmouth College. Fast forward into the late 90s and we started using machines or AI for logistics, data mining, medical diagnostics and other areas. Now you may be wondering, how does a device do it? Well a typical AI takes stock of its environment and starts evaluating a course of action in a human-like fashion to achieve its goals.

Now, how do we use this super intelligent machine in businesses and supply chain management? Believe it or not, AI has a significant impact on digitization and business due to its ability to take decisions and risk assessment. For example, with the use of AI, a warehouse manager will be able to successfully forecast and order the next inventory that needs to come in without any hassles.

Here are some more benefits of AI in Supply Chain –

Improved Customer Service

Organizations are increasing the use of AI to talk to their customers and resolve issues in real-time. AI platforms are intuitive and speak in different languages and solve complex customer queries thereby leading to an improved customer service experience.

Artificial Intelligence uses in procurement

What if, you as the procurement manager for an organisation could automate the whole process of onboarding vendors using AI? Businesses today are already using AI to reduce costs, mitigate fraudulent activities and save time during procurement by enabling machines to make the decisions through data analytics.

Physical Prototyping is Outdated

Gone are the days when innovators would physically build a prototype and add on its functions. Today, we have machines that recognize gestures and movement of hands and then render it to create 3D models of products. This implies that they directly talk to product developers in the digital space and make models in real time. Another example of its implementation would be switching on a button of a prototype can be done with a simple gesture by the product designer.


One of the greatest modern inventions, AI will continue to grow by leaps and bounds in the coming years. While we continue to expand its capabilities, we must be cognizant of its challenges and risks.


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