Blog

Machine Learning For Your Supply Chain

Posted by [email protected] on Mar. 6, 2020  /  Subscribe 0

Machine Learning is seen by many as a subset of Artificial Intelligence (AI). Machine Learning involves a computer using special algorithms to identify patterns inactivity. By identifying those patterns, the machine “learns" how to run itself without human interaction. Less precise than an Artificial Intelligence form of machine control, Machine Learning still offers many benefits to supply chain managers and executives. Repetitive activities and routine actions can be performed by the computer program with minimal human interaction or oversight.

How Can Machine Learning Transform the Supply Chain?

The nature of supply chain management lends itself quite well to machine learning protocols. Purchasing, shipping, and inventorying production components frequently involve the same actions being taken over and over again. This is the definition of machine learning. By performing the same tasks repetitively, the computer identifies every associated function and can take over the process so that human interaction is not required to accomplish supply chain tasks. In this way, managers and executives can take less time for routine functions and have more time to solve problems and resolve issues. Machine Learning can help with the following areas in supply chain management operations:

• Optimize Supply Chain Speed and Efficiency

• Forecast Customer Demand

• Plan Supplier Delivery Schedules

• Manage Suppliers and Documentation

What is Machine Learning in Artificial Intelligence?

Artificial Intelligence (AI) is all the rage in technology development in the 21st Century. AI-based programming removes the toil and redundancy involved in many computer and machine functions from human interaction and frees staff members for other, more important tasks. According to an article published on Blumeglobal.com, the best way to optimize supply chain management is through the use of Artificial Intelligence. Prediction models using advanced analytics and data analysis can generate demand forecasting predictions for supply chain operators in real-time. Adjustments to data or variations in prediction models help supply chain management make critical decisions to keep production running smoothly.

Machine Learning Advances Supply Chain Efficiencies

Performing data analysis and machine learning in the supply chain process allows the related activities involved in sourcing materials and products to happen automatically. An AI computer program can function exactly like a human but with greater speed and efficiency. The complexities of the logistics involved in acquiring, inventorying, and staging production components can be managed by the computer with fewer errors and greater attention to details. AI allows human managers and others involved in supply chain management to achieve a better bottom line. Reductions in costs, improvements in transportation and delivery management, as well as enhancements in inventory control all creat savings that contribute greatly to overall production cost reduction. 

Machine Learning and Artificial Intelligence Are the New Standard in Supply Chain Management

An article published by Gartner.com, a supply chain industry information resource, states "By 2023 50% of large global companies will be using Artificial Intelligence (AI), advanced analytics, and Internet of Things (IofT) in supply chain operations". More and more companies will use Machine Learning and Artificial Intelligence to control supply chain processes. Users of special algorithm-based programs have received the benefits despite the unique conditions many operate under. The adaptation of processes to individual system activities can take place without a high degree of interaction by computer programmers. In other words, the AI and Machine Learning systems develop their protocols and triggers without human oversight or intervention.

Time to Put Your Supply Chain Management Nightmare to Bed

Imagine a world where the daily grind of identifying suppliers, ordering materials, monitoring transportation, overseeing inventory, and delivering components to production are not problems. All of the hundreds of details can be identified, triggered, and monitored by a computer program that only talks to you when something isn't right. It's called "Management by exception" and it means you spend the day taking care of hiccups, not chasing down emails and paperwork. The advent of Machine Learning and Artificial Intelligence and its implementation for Supply Chain Management creates a whole new universe with greatly expanded roles for supply chain managers and executives.

The Machine Learning and Artificial Intelligence Revolution is Already Underway

When companies like AmazonTM and DHLTM use machine learning and AI to operate their acquisition, inventory, and delivery systems as well as to integrate warehouse robotics and employee activities, it's time to take notice. Forbes magazine, in an online article published in April 2019, details the advantages, presence, and need for incorporating machine learning and AI into all supply chain processes and protocols. Given the trends and technological improvements in supply chain procedures, it's apparent Machine Learning and AI are the only way to go.

JOIN AN INDUSTRY POINTING TOWARD THE FUTURE

If the idea of starting a career that evolves as fast as the world’s technology does appeal to you, then your first step should be to become APICS certified. With several certifications to choose from, you can become a jack of all trades within the industry, or tighten your focus on one specific area of Supply Chain. With so many options and opportunities, it’s up to you to set your career path, and now has never been a better time.

Return to list