Applications of AI for SCM
| AI approach | Application in SCM | Description |
|---|---|---|
| Machine learning (ML) | Demand Forecasting | Predicts future demand based on historical data, improving inventory management and reducing waste |
| Natural language processing (NLP) | Supplier Relationship Management and Employee training | Analyses communication data to enhance supplier interactions and negotiations |
| Robotic process automation (RPA) | Order Processing and Fulfillment | Automates repetitive tasks such as order entry and tracking, increasing efficiency and accuracy |
| Computer vision | Quality Control | Inspects products for defects using image recognition, ensuring high quality standards |
| Predictive analytics | Risk Management | Identifies potential risks in the supply chain and suggests mitigation strategies |
| Optimization algorithms | Route Planning and Logistics | Optimises delivery routes to reduce transportation costs and improve delivery times |
| Chatbots | Customer Service | Provides instant responses to customer inquiries, improving service levels and satisfaction |
| AI approach | Application in SCM | Description |
|---|---|---|
| Machine learning (ML) | Demand Forecasting | Predicts future demand based on historical data, improving inventory management and reducing waste |
| Natural language processing (NLP) | Supplier Relationship Management and Employee training | Analyses communication data to enhance supplier interactions and negotiations |
| Robotic process automation (RPA) | Order Processing and Fulfillment | Automates repetitive tasks such as order entry and tracking, increasing efficiency and accuracy |
| Computer vision | Quality Control | Inspects products for defects using image recognition, ensuring high quality standards |
| Predictive analytics | Risk Management | Identifies potential risks in the supply chain and suggests mitigation strategies |
| Optimization algorithms | Route Planning and Logistics | Optimises delivery routes to reduce transportation costs and improve delivery times |
| Chatbots | Customer Service | Provides instant responses to customer inquiries, improving service levels and satisfaction |
Source(s): Based on Durach and Gutierrez (2024), Hendriksen (2023)
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