To make the most of any AI tool, companies must put their strategy first. From deciding what to keep in stock to absorbing the shocks that are bound to happen, here’s how a flexible AI can help meet your business goals.
And, because the global supply chain is so complex, managers often must account for more factors than that.
The past 18 months have put an unprecedented amount of pressure on businesses to manage supply and demand.
In the case of toilet paper manufacturers, AI can examine whether it makes sense to retool everything in the process or retool the 20% it takes to meet the initial demand with a projection that everything else is going to return to a base level.
The challenge that the supply chain faces is that all that falls apart when shocks come through.
But people aren’t good at making thousands of interconnected decisions on the fly, and that’s where automated systems can come in and help steady the ship.
One AI horror story from the supply chain world comes when a consulting group told a global logistics company that the AI ran overnight and that it could tell them where every parcel was going to be, where every trailer was going to be, by the minute, throughout the day.
That’s ridiculous, of course, because it shows a complete lack of understanding about the supply chain industry, where conditions change by the minute.
If you set a higher-level goal & focus on the opportunities, you’re often going to get better results than trying to get everything perfect.
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