Computers and Technology

How Artificial Intelligence Benefits Supply Chain Management?

Artificial Intelligence, also known as AI, has taken the world by storm over the past few years and shows no signs of slowing down. In fact, it’s being used in every industry imaginable to help companies manage and improve their operations. Among all the many benefits that Artificial Intelligence provides, Supply Chain Management (SCM) seems to be one of the most exciting applications of AI at the moment.

Artificial intelligence has been described as an invisible hand that provides businesses with what they need when they need it. It’s also been referred to as the ultimate supply chain management tool because of its ability to generate insights and solve problems that human minds can’t process in real time. If you have yet to consider how AI can help your supply chain, here are three ways it can benefit your business.

Why Artificial Intelligence in Supply Chain Management?

The supply chain has grown so large and complex that it’s impossible to manage without the help of artificial intelligence. Traditional methods are no longer sufficient because they can’t keep up with the scale and velocity of today’s global supply chains. Artificial Intelligence (AI) is able to analyze data from various sources in real-time, predict future events, and provide insights for decision making.

The use of AI in supply chains management will enable companies to have a deeper understanding of their own and their suppliers’ manufacturing processes. As an example, one company is applying AI techniques to create and test new materials in collaboration with its suppliers; this has enabled the company’s suppliers to experiment with different materials which the company could use to reduce its environmental footprint. This collaborative process has led to more efficient and innovative solutions for both parties.

Here are the various applications of AI which can help in streamlining various processes of supply chain management.

Autonomous vehicles

Autonomous vehicles

The use of autonomous vehicles will be an important aspect of supply chain management in the future. Autonomous vehicles have many benefits for supply chains, including increased safety and efficiency. With self-driving vehicles, drivers can focus on other tasks, such as supervising a shipment or checking inventory. Self-driving cars can also be used to deliver products to customers in remote locations. This type of vehicle reduces fuel consumption and is more environmentally friendly than regular transport trucks.

Big Data

Logistics technology solutions help save time and money, while artificial intelligence in supply chains helps with the data collection and analysis. Artificial intelligence can also help with logistics optimization by analyzing which parts of the process are not as efficient as they should be so they can be fixed or streamlined.

The benefits of Big Data for supply chain management are well-documented. The rise of the Internet and advances in data storage, processing and transfer technology have made it possible to collect, store, process and analyze vast amounts of information on demand. This has led to the explosion of Big Data, an industry that continues to thrive and grow as companies find more ways to use this information in order to improve their operations.



It is an important consideration for any supply chain manager to consider the potential benefits that could come from utilizing robotic technologies. This includes robots that are capable of taking on tasks such as handling inventory, overseeing manufacturing processes, and coordinating delivery routes. The use of robotics in supply chains can streamline operations, minimize human error, and even reduce overall costs. Robotics has the power to make supply chain management more efficient and productive than ever before.

Contextual intelligence

In order to efficiently distribute goods and services, a supply chain must make use of contextual intelligence. Contextual intelligence is the ability for an artificial intelligence system to gain knowledge about its surroundings, its environment, and the people within it. It can then use that information to predict what might happen in the future, enabling better decision-making.

Impacts of AI on Supply Chain Management

Shorten distribution process

In order to shorten the distribution process, companies are looking to new technology, including artificial intelligence (AI), to help them better navigate the complexities of global trade. As AI is designed to optimize a process or workflow by learning from previous decisions and actions, it will be able to make smart adjustments in real time. Additionally, AI can be used as a proactive decision-support tool for supply chain management professionals.

Mitigate risks

In today’s world, supply chain management is more important than ever before. It’s not uncommon for a company to have suppliers in different countries and each of those suppliers may have multiple sub-suppliers as well. With this increased complexity, there are many risks that can negatively impact a company’s bottom line. One way to mitigate these risks is through the use of artificial intelligence and predictive analytics.

Boost productivity

AI helps a company to streamline its supply chain, thereby boosting productivity. This comes from the ability of AI to analyze data across many platforms and make informed decisions about how best to allocate resources in order to maximize efficiency. Some of the ways that AI can help with this are by developing predictive algorithms for inventory management, forecasting demand and order creation, optimizing routes for deliveries, determining what items need re-stocking and more.

Improve customer service

AI has many benefits and can be integrated into a variety of sectors, including supply chain management. AI can improve customer service by providing accurate information to customers when they need it most. For example, if a customer sends an email about a problem with an order, an AI-driven chatbot could respond as soon as the message is sent and provide answers to basic questions or links to FAQs. In addition, AI can optimize delivery routes and schedules in order to reduce costs for businesses and increase efficiency.


As the pace of business continues to accelerate, supply chain professionals are looking for technology solutions that will help them keep up. Logistics technology solutions are playing a more and more important role in this endeavour. With these technologies, supply chain managers can be better equipped to monitor the flow of goods and identify inefficiencies. They can also use these tools to predict future demand and plan ahead.

In conclusion, AI has already started to make significant improvements in the supply chain management world. In an increasingly competitive marketplace, companies are looking for ways to gain a competitive edge and AI is proving it can do just that. The use of artificial intelligence in supply chain management will continue to grow as companies and individuals see the benefits of this technology.

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Jane Brewer

Technology consultant in leading software development company committed to providing end-to-end IT services in Web, Mobile & Cloud.

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