Are US Manufacturers Ready For Supply Chain Artificial Intelligence?
July 17, 2018
Supply Chain Artificial Intelligence (AI) uses automation for problem solving, continuous learning, and pattern matching. The key innovation in Supply Chain AI is predictive intelligence which is invaluable in using data to foresee disruptions, forecast demand, inventory planning, and utilize resources more efficiently.
Reduce Inventory Costs
Supply Chain AI can more accurately predict raw material outages helping buyers and planners reduce excess inventory and potential shortages.
Reduce Invoicing Errors
Invoicing errors caused by suppliers over-billing and/or under-shipping raw materials to manufacturers is far more common than people realize. Supply Chain AI can more accurately and consistently prevent invoicing errors using advanced and sophisticated pattern matching.
Supplier Quality issues are another major challenge facing manufacturers today. Supply Chain AI can help manufacturers better collaborate with their suppliers, use pattern matching to detect repeat failures, and predict future quality issues.
US Manufacturing Today
Unfortunately, 99.5% of manufacturers today are not ready for Supply Chain AI. With older and disconnected technology, many manufacturers' and suppliers' data is not easily shared with one another. Integrated data and connected technologies are crucial for Supply Chain AI. Another issue within US manufacturing is the growing need of skilled workers and overwhelming amount of work to do. Automating processes through AI can reduce employees' extra workload and ultimately help with employee retention.
US manufacturers can benefit from Supply Chain AI as it reduces costs, invoicing errors and defects. Where will machine learning and automation take us in the next few years? Take a look at the article below that discusses AI in the city of Pittsburgh.