Artificial intelligence (AI) has become incorporated into almost every aspect of the modern world. Supply chain management (SCM) also employs AI-based systems to increase the accuracy of calculations and improve their overall functionality (Toorajipour et al., 2021). SCM can be defined as an inter-and-intra-organizational network that consists of finances, marketing, logistics, purchasing, production facilities, and material suppliers that aim to increase profit and attain client satisfaction (Toorajipour et al., 2021). Various AI tools such as ANN, FL, ABS, MAS, Gas, CBR, SVM, and MDP are implemented in SCM (Toorajipour et al., 2021). The most widely-used technique is ANN, which stands for artificial neural network, and it is based on mathematical regression models needed for finding patterns (Toorajipour et al., 2021). In SCM, it is utilized in demand management, forecasting, customer segmentation, pricing, supplier selection (Toorajipour et al., 2021). Since this system becomes better with time after continuous data input and training, it is the most popular AI system in a business fields that require effective problem-solving methods.
SCM became more sophisticated, and hence companies that have not introduced AI need a specific four-step implementation plan. The first stage demands identification of primary values and goals (Alicke et al., 2021). Second, it is essential to select the right provider of an AI system that will apply to these goals (Alicke et al., 2021). The third step is to introduce this system using an end-to-end approach to integrate AI into all critical elements of the value chain (Alicke et al., 2021). Lastly, it is crucial to prepare the company for the change through appropriate training of employees and managers (Alicke et al., 2021). The AI-based system is a quick and precise way to achieve SCM objectives.
References
Alicke, K., Dilda, V., Görner, S., Mori, L., Rebuffel, P., Reiter, S., & Samek, R. (2021). Succeeding in the AI supply-chain revolution. McKinsey & Company. Web.
Toorajipour, R., Sohrabpour, V., Nazarpour, A., Oghazi, P., & Fischl, M. (2021). Artificial intelligence in supply chain management: A systematic literature review. Journal of Business Research, 122, 502-517. Web.