The Expanding Role of AI in Supply Chain Management

The Expanding Role of AI in Supply Chain Management


Vivek Sood




May 11, 2021

Supply Chain Planning And Execution Needs Decision Making

For a human to be switched on 24/7 and make real time decisions as soon as the data becomes available would be very costly, if not impossible.

We deploy humans in shifts when this real time decision making capability is absolutely critical - e.g. plants that are running on continuous flow processes such as oil refinery, merchant ships, glass manufacturing and many others.

In most other situations we wait for humans to make these decisions in batches. 

Now We Have An Alternative

As the use of AI expands many of these decisions can be made by the machines following the algorithms built into smart decisions.

Machines make these decisions in real time, cutting out the delays, thereby making the supply chain processes a lot more smooth, efficient and continuous flow.

Bottlenecks and wastes are cut. Bull whip effect is reduced as a result. Supply chain planning and control becomes a lot easier. Cost of operations goes down, while the productivity goes up.

These advantages are in addition to the cost savings from having a machine replace a human to make the decision.

Read the FAQs (Frequently Asked Questions) On Use Artificial Intelligence (AI) In Supply Chain Management for more information on the topic. 

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Vivek Sood

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

  • What are the five flows of SCM?
  • Why are they important TO YOU?
  • How can you map, track, and optimise these flows to serve YOU?
  • What is the importance of difference between "Supply Chain" and "Value Chain"?
  • What are the stellar case studies of each of the five flows?


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