Benefits of Using Machine Learning in Supply Chain
Machine Learning in Supply Chain: An Overview
Machine learning is an application of artificial intelligence that provides computer systems the ability to learn from recorded data and experiences. Machine learning is a scientific study of algorithms that enable computer systems to perform a specific task efficiently without explicit instructions. It incorporates learning arising from a combination of different variables to enable better customer experiences. Read this blog post to discover the benefits of machine learning in supply chain and how it positively influences the supply chain industry.
Challenges in the logistics and supply chain industry are occurring due to an imbalance between demand and resource availability, inadequate area mapping and vehicle breakdown. Machine learning innovatively determines patterns in supply chain data. It enhances customer experiences and transforms logistics management processes. Machine learning algorithms can find new patterns in supply chain data without manual intervention.
According to Gartner, by 2020 95% of Supply Chain Planning (SCP) vendors will be relying on supervised and unsupervised machine learning in their solutions. Gartner also predicts that by 2023, intelligent algorithms and AI techniques will be embedded across 25% of all supply chain technology solutions.
Benefits of Machine Learning in the Supply Chain Industry
How Machine Learning is Transforming Supply Chain Management
Enabling Field Staff to Make Informed Decisions
In the logistics and supply chain industry, the situations and on-ground variables can change rapidly. For instance, uncertain situations like cyclone may require rerouting of shipments via different routes to different locations. Machine learning and advanced analytics can enable field staff to quickly evaluate the best and worst possible scenarios. Machine learning uses complex algorithms to suggest optimal solutions to field personnel so that they can make well-informed decisions.
Gaining Greater Contextual Intelligence
Machine learning enables key stakeholders to gain greater contextual intelligence across supply chain operations. It reduces inventory and operations costs and accelerates the response to customer queries. Machine learning is achieving adoption in logistics control tower operations to provide new insights into how supply chain and logistics management can be improved.
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