AI: A New Guardian In Supply Chain Management

Food and Beverages Tech Review | Monday, September 07, 2020

Defining the utilization of AL in increasing the efficiency and sustainability of supply chain in industries.

FREMONT, CA: The sustainable scheduling and management of logistics in many enterprises is not up to the mark; even today, supply chains have not been environmentally friendly. The fine line of control over factors like speed, flexibility, cost, and carbon footprint is blurred when looked in terms of shipping or transportation of the goods. It is highly unlikely for the enterprises to encourage sustainable practices with the current trends for shipping.

Newer technologies like big data analytics and AI have enforced a positive push over the companies, enabling the supply chains to function both efficiently and sustainably as possible. AI adoption has always resulted in causing dramatic effects on the supply chains, assisting the companies in benefiting from the most cost-effective and sustainable routes for shipping.

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To implement these technologies, firms have focused on jumping to a sharing economy in the case of supply chain management. By utilizing AI, data, and unique algorithms, a paradigm shift in the handling and operations of supply chains can be enabled along with the encouragement to work together. There are some recognized specific areas where these solutions can be applied to build a smart, efficient supply chain.

• The Shipping Co-Operative:

With the use of technology, AI-based algorithms can be utilized among organizations to incorporate a shared use of shipping and other transport methods. The algorithms developed specifically for this purpose will identify opportunities to share the commuting resources by collaborating with several transporting firms.

The algorithm also uses the data from GPS to schedule and manage the logs from collections and drop-off points of the shipping firms providing enhanced coordination. With real-time updates recorded as well, the entire system and the participants of the system are aware of the status of the shipment at all times with specific updates about the routes, stocks, and costs. The state of economic co-operation among the organizations has also opened up gates for mutual benefitting from various supply chains with other firms as well.

• Synchromodality:

As different packages need to reach at different time intervals, and most times the package delivery date may vary at the last minute. With the use of the physical internet, the syncromodalilty or the synchronization in the scheduling of shipping routes can be aptly adjusted depending on the methods of transport. This method can take into considerations the emergencies and can make the deliveries without compromising on quality or brand integrity.

With the use of real-time data system, the transportation method of the ongoing transaction can be adapted suitably while the shipment is en-route. Even during transportation, the algorithm has the power to select the most efficient and sustainable option in real-time.

• Deep Reinforcement Learning:

Deep reinforcement learning is an element of machine learning that involves the training of algorithms to enable better decision-making skills. The training method is a trial and error process where the technology is taught and diverted towards making the ideal solution at that point. With positive reinforcement, the robot is trained to streamline the random activities to repeat only those actions which show a good outcome for the institution.

Enterprises who use deep reinforcement learning can train its own AI module to conduct complex and positive supply chain decisions which include numerous variables. By doing the industry-specific learning program, the AI can accurately determine the details of the shipment to be sent, when to ship the products and the best mode of transportation.

The same program can be used to create algorithms, which encourage and efficiently carry out collaborative shipping, and use syncromodality approach to rejuvenate the company’s inventory. The interlinking of all the aspects mentioned above will result in creating the most efficient supply chain possible for an organization.

As the integration of newer technologies like AI to the supply chain occurs, the company converts into an environmentally supportive one with the reduction in the pollution and pressure on the atmosphere. The company’s carbon footprint will also reduce allowing the company to make a positive impression on the world.

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