Student Ar cles
AI the next big thing in SCM
Complete Automation
The integrated supply chain journey would start from the network of suppliers, connected
with integrated manufacturing systems in the supplier's plants through the Internet of
Things. When orders are received online, products are going to be transferred seamlessly
via driverless vehicles to the plant. The product will be loaded onto driverless vehicles by
robots and transported to smart warehouses. Thereafter, the consignments are going to be
categorised and shipped to retailers through driverless vehicles or sent directly to the
buyers. The last-mile connectivity to customers would also be through autonomous or
driverless vehicles including a delivery personnel on board for delivering the ordered
parcel to the customer.
Driverless Vehicles
In virtually the entire transaction, Artificial intelligence would aid the process in some
manner or the other - computers crunching supply information, driverless vehicles
shipping the consignment from supplier to manufacturer to warehouses, mobile robots
would then transfer the consignment from the warehouse to driverless vehicles, which
would then be transported to the customer's address.
Driverless vehicles would be the norm in supply chains in the long run and will be
supported by the Internet of Things (IoT), Cloud Computing and Big Data Analytics.
Artificial intelligence will also be manifested in autonomous mobile robots and self-
driving forklifts and pallet jacks for material flow in production plants and warehouses.
Chatbots
Chatbots are an application of AI (Artificial Intelligence) that may prove to be the next
huge disruption for supply chain management. Bots will handle low-value transactions. A
user can simply ask it to shop for something and it'll work and make it happen. There's no
benefit created by having a customer inserting purchase orders. Bots can even handle the
paperwork, chasing orders, managing invoices and payments.
As per PwC estimates, nearly 45% of current manpower activities may be done by self-
automated machines, saving around $2 t