Student Ar cles
AI the next big thing in SCM
Solutions in retail:With the abilities of
AI of predicting trends by analyzing
previous purchases and shopping
seasons, combined with current
purchasing behavior and accurately
forecasting market demand, retailers can
improve product availability and
increase customer satisfaction. Better
data available to the retailers ensure
better downstream sales. Also the
unpleasant Bullwhip effect in a supply
chain can be eliminated
Inventory Management:Retailers and
vendors can better plan resource
allocations based on fulfillment strategy
by combining sales data and inventory
designated for different channels.
Visibility to the real-time data creates a
provision for the retailers to figure out the
fastest and most effective fulfillment
method for a customer's order.
The Next Big Step: Autonomous
Supply Chain
With the scrupulous use of AI, we have
reached a new era of “smart factory”.
Cyber physical systems, cloud
computing, cognitive computing,
Internet of things (IoT) are the main
elements which have created an
integrated system where processes
communicate with each other as well as
human beings.
A study by World Economic Forum
reveals, 91.2% people think future will
arrive when 10% people will wear
clothes connected to the Internet. Well,
another angle to look at future can be:
successful implementation of a system
which can process data, make critical
decisions where no human intervention is
required. The concept of autonomously
delivering products is slowly assuming
life by using concepts like use of drones
to deliver parcels directly to customers.
We have some hurdles to overcome
before reaching a stage where there's no
human intervention in the supply chain.
But a massive disruption by Autonomous
Supply Chain is just around the
corner.An autonomous supply chain
should have the capability to process a
11 Operations & Supply Chain Club, IIM Raipur
request to fetch a component from its
location and to autonomously deliver this
component to a specified delivery point,
all without human intervention.
In the 'Imagine2030' conference of supply
chain insights, Lora Cecere, Enterprise
Strategist and noted researcher explained:
'Autonomous Supply Chain' of 2030
would be
ü Outside-in
ü learning
ü socially responsible
ü orchestrating the network of
networks
ü providing an engine of growth
Outside-in means the supply chain is able
to pick up demand signals and translate
those up to your suppliers' supplier, and
likewise, pick up supply signals, like price
changes or shortages of key raw materials,
and translate that into demand shaping
actions, like marketing alternatives. In the
outside-in supply chain, the outside world
is deciding what action is appropriate.
Learning is a key to unlock the secrets of
increased complexity. Knowledge of
advanced analytics will be essential in
learning to handle the 'artificial way'.
The autonomous supply chain will create
enormous opportunities to make the flow
of goods safer, more efficient and
environmentally friendly. This model will
be sustainable and we will become more
socially responsible.
Finally, autonomous supply chains will
generate new job profiles with high skill
sets and become the engine of growth.