AI in Supply Chain: Cutting Through the Hype and Unlocking Real Value – Part 1

The widescale adoption of Artificial Intelligence (AI) has impacted every industry, and supply chain management is no exception.

However, AI has been a part of supply chain for quite some time; In the 1980s, rule-based systems emerged as a significant AI application in supply chain management, attempting to mimic human expertise in specific domains. One notable early application was the Inventory Management Assistant (IMA), which was designed in 1986 to improve spare parts replenishment for the US Air Force.

Since then, we’ve seen significant developments in AI applications for enhancing efficiency and optimising supply chain processes – but today’s hype often overshadows the practical applications. The reality is that AI, like autonomous vehicles, has made great strides in certain areas but still requires significant human supervision.

Before we start dreaming about fully automated supply chains, we need to focus on augmenting existing systems rather than chasing a utopian “lights-out” operation that requires zero human input or oversight.

Tim Gray, Managing Director, Prophit Systems.