The Role of IoT in Shaping the Future of Supply Chain 23rd edition | Page 78

Negotiation Automation Platform
Verification details
Normal time to complete negotiation ( without AI )
AI supported time to complete negotiation
Case 1 One order . Request to increase quantities .
Case 2 One order . Request to deliver forward .
Case 3 Multiple order . Request to increase quantities .
5 days 46 sec .
5 days 5 min . 42 sec .
1 month 13 min . 12 sec .
Case 4
Negotiation to decrease quantities of recorded orders .
10 days 4 min . 30 sec .
Table 5-1 : Evaluation of time to complete negotiations . 8
In the current coordination operation , before introducing an Automated Negotiation Platform , coordination is made through human-to-human emails . It takes hours or even days to receive replies from counterparties , resulting in a coordination period that spans several days . In these experiments , waiting times perceived by humans were reduced from several days to within one minute by merely replacing one side with AI . Consequently , this significantly reduced the overall coordination period .
5.2 PROCUREMENT OF PARTS AND SALE OF AUTOMOBILES
The second case study focuses on the automotive production supply chain . We conducted a simulation in which an automobile manufacturer ' s Automated Negotiation AI simultaneously and consistently executed the sales negotiations for completed cars and the procurement negotiations for missing parts , taking manufacturing lead time and pricing into account . In this case , the negotiation counterparties were also AI agents , and we confirmed the approach ’ s effectiveness .
Automobile manufacturers procure parts to manufacture cars and then sell the completed cars . Procurement of parts requires negotiations with suppliers to agree on delivery schedules , quantities , prices , etc . To manufacture a vehicle , both parts and available production facilities are needed , making the management and planning of their availability essential . Selling completed cars necessitates negotiating with buyers on delivery schedules , prices , etc . To conduct procurement and sales negotiations coherently , it is necessary to establish multiple negotiations that satisfy both price and delivery consistency .
8 https :// prtimes . jp / main / html / rd / p / 000000158.000078149 . html Journal of Innovation 73