The Role of Artificial Intelligence and Automation in Global Supply Chain
Published by : Industrial Automation
As technology is continuously evolving, its adoption is also augmenting across various domains. Particularly, the rapid advancement of Artificial Intelligence and Automation is transforming business functions, enabling decision-makers to deliver effective services to customers and gain greater ROI. These technologies have the ability to drastically bring changes to the global supply chains, and carry out value quickly and effectively to customers as well as shareholders.
AI is already overhauling the operational process and facilitating cost-effective supply chain solutions. There are numerous forms of AI are being integrated into supply chain management solutions that can perk up everything from process automation to delivering greater visibility into static and real-time data, alongside related management information systems.
AI systems use various forms of cognitive computing to optimize the combined efforts of artificial and human intelligence. According to a report from Research and Markets, the global AI in the supply chain management market is expected to value $1.3 billion by 2024. The report said that AI in supply chain management is enabling improved supply chain automation using virtual assistants, which are used both internally and between supply chain members.
AI and Automation Threatens Jobs in Supply Chain
With the growing automated supply chain, the ability of computers and robots can be able to outshine that of workers in a number of tasks. There have been robots in the supply chain for several years, but the developments of AI and machine learning is now allowing these robots to become even smarter and learn themselves to operate alone, without human interference, which is causing the reduction of the need for humans.
Besides this, some analysts believe that humans are still obligatory for every aspect of supply chain management, regardless of how advanced automation, robotics or AI become, or how much programming is done. The decision of humans will be the ultimate paramount.
On the other hand, when computers will become both better and more cost-effective than human workers, the human workforce will be displaced through labor substitution. According to a study, about 47 percent of US jobs are at risk of computerization.
Most organizations are already getting good results from their AI investments, particularly within their supply chains. For example, Rolls Royce, an energy company, which utilizes AI algorithms on its ships to detect what is around them in the water and categorize items according to the danger they pose to the ship. In addition, UPS, a US-based logistics company uses an AI-driven GPS tool to create the most efficient routes for its fleets.
So, as artificial intelligence and automation get smarter with the advancements in their applications, we believe the supply chain management will be more automated and drive more innovation throughout the modern supply chain.