Use Cases

AI in Supply Chain: 2022 Guide 

In this article we take a look at how AI is being used in the supply chain. While examining the areas of use, we will also touch upon the benefits of the technologies.
Rabia Gül
6 minutes

AI in Supply Chain: 2022 Guide 

It has become a fact that artificial intelligence will transform many sectors in the future. On the other hand, we have started to hear the footsteps of this transformation. Many sectors are integrating artificial intelligence technologies into their work.

AI is not only leading sectoral transformations but also has the potential to transform certain intermediate jobs. For example, supply chain and logistics are seen as areas where this transformation will develop rapidly. We are already living in a period where many supply chain tasks that take up people's time are transferred to artificial intelligence. So how are AI technologies being used in the supply chain and how can you integrate them into your business? Continue reading.

The following topics will be covered in this article:

·        AI in Supply Chain Management 

·        Applications of AI in the Supply Chain

·        Real World Use Cases of AI in Supply Chain

Enjoy your reading!

AI in Supply Chain Management

A 2017 study found that supply chain businesses are wasting time and money on many trivial and "drudgery" tasks. According to the study, 6500 hours per year in supply chain and logistics are wasted on tasks that could be automated. The average annual cost of this is approximately 172,000 USD per business. You can access the research here.

As the demand for supply chain and logistics grows and the supply chain market value has increased nearly tenfold compared to recent years, accelerating automation to eliminate this cost of time and money has become an inevitable necessity. It is impossible to think of this automation independently of artificial intelligence. Artificial intelligence technologies lie at the heart of all developments that will save the future of the industry.

So which tasks can be automated in the supply chain with artificial intelligence technologies? Although the answer to this question is extremely diverse, some of the areas that will be easily automated now and shortly are as follows:

·        Many office tasks such as document processing, text analysis, image analysis, data entry, etc. can be automated, freeing up time for employees to focus on more complex tasks.

·        Transportation and logistics can be automated through AI technologies. Especially big companies like Amazon are attracting attention by investing huge amounts in this field.

·        By warehouse automatization, work safety can be increased and many time-consuming tasks can be automated in this area.

On the other hand, since it can obtain more precise and large amounts of data, this data can be used effectively in decision-making and business development processes. Fact-based, concrete data can be utilized in the formulation of annual forecasts and the selection of investment instruments.

With artificial intelligence in the supply chain:

·        Data on inventories are processed correctly. Product selection is made accordingly.

·        Storage costs are reduced.

·        Business development processes can be tracked more efficiently. It is easy to make investments in line with the supply and demand balance.

·        More realistic and inclusive approaches to customer relations can be developed.

·        Sustainable development can be achieved.

It's not hard to predict that AI will play a very important role in the supply chain in the future. It would not be wrong to say that artificial intelligence applications will take over the supply chain from start to finish. Companies that have already started to benefit from AI technologies in Marketing, Planning, Distribution, and Production are starting to win and will undoubtedly continue to do so. So how will you integrate AI into the supply chain in these areas? Here is a small guide for transformation:

·        If you would like to learn more about AI Marketing, please click here.

AI in Supply Chain

1.      Define your roadmap and strategy

The first step is to determine what you need. For this, you need to draw the path that best suits your needs and values. First, think about which area you need AI and automation. Artificial intelligence in the supply chain can work in many different areas, choose your priority from areas such as logistics, production, or security and draw a digitalization roadmap accordingly.

2.      Start finding solutions

Try to find the most suitable providers for the transformation you want to realize. For example, if you need AI solutions for occupational safety, you should look for a company that offers computer vision and security services. (e.g. Cameralyze)

3.      Integrate

This is the stage where you move to implementation. At this stage, you may find it quite difficult at first. Nevertheless, it is important to take the most appropriate steps. You need to take a holistic approach here and ensure that the transformation is applied to all parts. You must transform your business from top to bottom. 

4.      Manage the change

Managing change is more difficult than initiating change. It is very important that your employees get used to this transformation, that you start using new technologies, that you identify your shortcomings and work on them, in short, that you manage change. 

To summarize, with AI developments in the supply chain, you can reduce costs, save time and have the necessary instruments to improve your business. We have discussed the importance of AI in the supply chain and its benefits, but what are the examples of applications in this field? Let's take a look.

Applications of AI in Supply Chain

We talked about the importance of artificial intelligence in the supply chain and how you can initiate change. So how is artificial intelligence applied in the supply chain? Let's examine these areas carefully.

Work Safety

Artificial intelligence is a highly reliable source for ensuring job security and is much more effective than humans at this point. For example, effective security can be achieved with AI solutions such as human detection and object detection. Important processes such as real-time detection of the use of protective equipment can be realized with AI solutions.

In addition, comprehensive security measures such as weapon detection and facial recognition are also part of these solutions. For detailed information on these solutions, please click here.

Inventory Management

Inventory management is a very important issue. It is possible to overcome all the problems related to this by using AI technologies in the supply chain. This way, decreasing products can be detected promptly, accurate inventory placement can be made, and new inventory can be shaped according to the products in demand. It offers very important tools in terms of diversifying the product range according to customer requests and customer satisfaction.

Reduced operation Costs

As we mentioned at the beginning of our content, without AI in the supply chain, there are huge losses in time and cost. Utilizing artificial intelligence technologies to reduce these losses provides a great advantage. With AI technologies, you can automate office work, ensure security and get rid of warehouse costs. This way, you can reduce costs and work faster.

On-Time Delivery

Faster and on-time delivery becomes possible as transportation is automated and warehouse processes are automated. Automating transportation and ordering systems will speed up your business and greatly increase your business capacity. This will increase your customer satisfaction and your customer's loyalty to you and increase your brand image.

Real-World Use Cases of AI in Supply Chain

Artificial intelligence is used effectively in many fields. It represents the future of the supply chain and a transformation is needed. We've talked about how AI is being used in the supply chain, the benefits and the necessity of it, but are there examples of it today? The answer is yes. Let's take a look at examples of using artificial intelligence in the supply chain. 

Decision Making

Data-driven decision-making is one of the most common uses of AI in the supply chain. There are many applications used to make data-driven and error-free decisions. For example, Coupa is one of the most frequently used applications for this purpose in the US, and it analyzes sales data and inventory data in the supply chain, enabling effective decision-making in this area and making business development processes accurate.

Security

Occupational safety is very important. There are many practices in this regard. For example, ensuring the occupational safety of employees and preventing accidents with artificial intelligence and object detection applications. Artificial intelligence solutions are used effectively in many very important issues such as supervising the use of occupational safety equipment. Cameralyze is one of the leading brands that provide applications in the field of computer vision and security. Please click here to learn how you can create object detection applications.

Click here to learn more and benefit from Cameralyze AI solutions.

AI technologies in Supply Chain

Bottom Line

Artificial intelligence technologies are increasingly being used in the supply chain. The development of artificial intelligence in this field will prevent losses of time and money in the supply chain. Artificial intelligence technologies are increasingly being used in the supply chain. The development of artificial intelligence in this field will prevent losses of time and money in the supply chain.

If you want to prepare and transform your business for the future, you can benefit from artificial intelligence solutions. Visit Cameralyze to learn more about the various ways AI technologies are being used in the supply chain.

With Cameralyze AI solutions you can work flexibly. With the user-friendly interface of the platform, you can use AI solutions for your business and yourself without the need for technical background and technical knowledge.

Cameralyze keeps your data safe and allows you to operate with confidence. This way, your data gains value.

Don't know how to use AI technologies for your small business? Please visit this page for more information.

Start using Cameralyze today!

Start now for free!

No contracts, no credit card.
Free up-to 100 frames
Free hands-on onboarding & support
Hundreds of applications wait for you