Experts say that supply chain management is one of the top industries that will benefit from the adoption of artificial intelligence (AI) this year.
In February, Morai Logistics discussed the positive impact Artificial Intelligence is forecasted to have on our industry. From robotics and machine learning to delivery optimization to maintenance consistency, the possibilities are endless.
According to Statista, in 2025 the global AI market is expected to generate approximately 89, 847.26 billion U.S dollars. This technology has gained considerable global interest for the heightened efficiency, productivity and innovation it provides many industries. The AI market is also forecasted to contribute ‘$15.7 trillion to the global economy’ by 2030.
There is no denying the positive impact Artificial Intelligence will have on industries that help propel our world forward. Supply chain management is considered one of the top three industries to benefit from the advancements of AI technology. From the manufacturing floor, to inventory and logistics, AI is a catalyst for efficiency, agility and accuracy.
In part two of Artificial Intellignece, Morai Logistics discusses the current impact of AI in the supply chain industry in 2019. It also outlines the valued benefits of integrating AI technology into supply chain management.
Artificial Intelligence at a Glance
To understand the global impact of AI, Microsoft commissioned a survey that included 400 senior executives working within eight various markets. Their findings indicated that 94% of executives ‘describe AI as important to solving their organizations strategic challenges’. Digital maturity has been a slow and progressive movement across a variety of industries. However, more than 27% of executives stated they have already incorporated AI into their organizations.
From a supply chain standpoint, a recent study by global research leader, McKinsey, found adoption to be significantly high. Their global survey indicated that 76% of supply chain respondents found ‘moderate to significant value from deploying AI’. Their research indicated that supply chain management is one of the top three industries to benefit from this technology. Thus, confirming that this technology has made its way into the industry, with positive feedback from top level professionals.
Benefits of AI in Supply Chains
Before we outline the extended benefits of AI in supply chains, it’s important to first recognize the challenges with implementation. If the process of integration of technologies was simple, many industries would be at the higher end of the spectrum of digital maturity. Forbes indicates that the most significant challenge is acquiring the right talent pool. However, they also followed with optimism that many organizations place importance on ‘building in-house AI capabilities’. Therefore, as supply chains evolves, employees are also encouraged to develop their skills.
In February, Morai Logistics looked at robotics and machine learning, delivery optimization and maintenance consistency. According to Microsoft,
There is tremendous opportunity for AI to augment human abilities across industries while capitalizing on unique human capacities for creativity and agility – human characteristics that are difficult for computers to mimic.
This supports the fundamental reality that AI heightens employee performance, as AI technologies enable them to focus on their core skills. Furthermore, research has also found positive results from the integration of predictive capabilities. The reality is that AI continues to evolve and learn which also enables supply chains to learn and adapt to change. This is especially helpful when developing processes that enable ‘demand forecasting and capacity planning’.
Big Data is also an incredible tool that helps technologies such as AI advance. Research indicates that 81% of shippers and 86% of third-party logistics (3PLs) providers believe in using Big Data. In fact, they believe that ‘using Big Data effectively will become “a core competency of their supply chain organizations.
AI will cause considerable change and provide opportunities to the supply chain and logistics industry in the upcoming years. As organizations continue to diversify their labour force and integrate and develop various tools using AI, supply chains will see positive growth.