According to Gartner, the level of automation in supply chain processes will double in the next five years. At the same time, global spending on IIoT platforms is expected to grow from $1.67 billion in 2018 to $12.44 billion in 2024, reaching a 40% CAGR in seven years, according to a recent study. As global supply chains become increasingly complex, the margin for error is shrinking rapidly. With increasing competition in a connected digital world, it is becoming even more critical to maximize efficiency by reducing all kinds of uncertainty. Increasing expectations for speed and efficiency between suppliers and business partners of all kinds further underscore the need for the industry to leverage the capabilities of artificial intelligence (AI) in supply chains and logistics.

The benefits of using artificial intelligence in the supply chain:

• ACCURATE INVENTORY MANAGEMENT. Precise inventory management can ensure the proper flow of goods in and out of the warehouse. In general, there are many inventory-related variables, such as order processing, picking and packing, which can be very time-consuming and error-prone.
• STORAGE CAPACITY. An efficient warehouse is an integral part of the supply chain, and automation can help get goods out of the warehouse in a timely manner and ensure their smooth journey to the customer. Artificial intelligence systems can also solve many warehouse-related problems faster and more accurately than a human, as well as simplify complex procedures and speed up work. Moreover, in addition to saving valuable time, automation based on artificial intelligence can significantly reduce the need for warehouse staff.
• GREATER SECURITY. Automated AI-based tools can provide smarter scheduling and efficient warehouse management, which can increase worker and material safety. Artificial intelligence can also analyze workplace safety data and inform manufacturers of any possible risks. It can record storage parameters and update operations with the necessary feedback loops and proactive maintenance. This helps manufacturers respond quickly and decisively to maintain warehouse safety and compliance with safety standards.
• REDUCING OPERATING COSTS. From customer service to the warehouse, automated intelligent operations can run flawlessly for longer periods of time, reducing errors and incidents in the workplace. Warehouse robots provide greater speed and accuracy, achieving higher levels of productivity.
• ON-TIME DELIVERY. Artificial intelligence systems can help reduce reliance on manual operations, making the entire process faster, safer and smarter. This facilitates timely delivery to the customer in accordance with the commitment made. Automated systems speed up traditional warehouse procedures, thereby removing operational bottlenecks throughout the supply chain with minimal effort to meet delivery targets.

This article was written thanks to the funds from the European Union’s co-financing of the Operational Program Intelligent Development 2014-2020, a project implemented under the competition of the National Center for Research and Development: under the “Fast Track” competition for micro, small and medium-sized entrepreneurs – competition for projects from less developed regions under Measure 1.1: R&D projects of enterprises Sub-measure 1.1.1 Industrial research and development work carried out by enterprises. Project title: “Developing software to improve forecast accuracy and inventory optimization from the perspective of customer and supplier collaborating in the supply chain using fuzzy deep neural networks.