Student Ar cles
AI the next big thing in SCM
Autonomous supply chains need high
level of order and standardization. It
needs sophisticated software which
supervises the entire process and has the
ability to locate all the parts and delivery
point error free.
IBM's Newton, Enterra's ECS are
working examples of cognitive supply
chains and ERP, MRP as internal
automated systems are used by the
organizations for many years. These
systems are slowly improving with the
use of drones, tunnels, tubes, rolling
robots and automated warehouses. But
capturing the full potential of the
automated supply chain requires
rethinking and transforming the
mainstream logistics systems: from the
fixed “collect in the evening and deliver
during the morning” approach to a fluid
system of continuous movement and
supply.
optimum cost. Whereas, a wrong strategic
decision such as getting overwhelmed with
the ocean of data and trying to curate
everything, leads to inefficiency and
increases the cost exponentially.
Ensuring all these factors are accounted for
and companies are well placed to analyze and
explore insights from the wealth of data
created by AI throughout a supply chain,
eventually ensures an innovative, safe,
sustainable, perfectly profitable and futuristic
business.
Future Ahead
Though Artificial Intelligence, Cognitive
and autonomous supply chains are
championing the data processing and
using the derived intelligence for taking
business decisions, we need to be extra
cautious while implementing these fully
autonomous systems. In these integrated
systems, all the data are digitized and
there is a high concern of cyber risk. We
need to make sure the autonomous units
are hack proof or the enterprises stand to
lose all their business. Businesses should
take preventative measures by tackling
and resolving threats earlier in the
process. Using Big Data and AI
technologies, businesses can thoroughly
vet all parties involved in the supply
chain process, ensure efficient and secure
movement of goods.
Policy makers should take an informed
decision about where to drive innovation
and where to slow down the autonomous
economy to avoid unwanted
consequences, such as job losses.
Implemented diligently, these modern
supply chains can ensure high efficiency,
minimum error, fast response and
Volume 7 issue 1 November 2017
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