AI-Powered Supply Chains Towards Greater Efficiency

Introduction:

Grand View Research estimates that the AI market is already worth $136.55 billion. Their study projects a CAGR of 37.3% between 2023 and 2030. (Forbes, 2023). Due to the rapid digitization of all the key sectors of our economy, including banking and financial services, healthcare, automobiles, and telecommunications, there is a growing demand for AI-based tools and systems throughout India. This is because AI helps with automation, minimizes errors, and manages repetitive tasks. With a compound annual growth rate (CAGR) of 33.28% from 2023 to 2028, the artificial intelligence industry in India is expected to rise from $680 million in 2022 to $3,935.5 million by 2028. (IMARC report, 2023). In India, spending on artificial intelligence increased by 109.6% in 2018, or $ 665 million, and is predicted to increase at a CAGR of 39% to reach $ 11,781 million by 2025 (IBEF, 2023). The process of delivering the appropriate product to the right consumer at the correct time, place, and cost is known as supply chain management. Logistics deals with the transportation of the goods from the manufacturer till it reaches the end user. It deals with both inbound logistics and outbound logistics. The application of AI is more crucial and critical for the success of Supply Chain and Logistics, especially in the field of automation. AI provides technologies and tools which helps the supply chain to perform repetitive and error-prone activities automatically. Some of the most common technologies are warehouse robots, autonomous vehicles, RPA [Robotic Process Automation] and digital workers.

A technology known as artificial intelligence (AI) enables machines to perform tasks that would ordinarily need human intelligence. It entails the creation of computer systems with the capacity to learn and take judgment calls based on information and algorithms. AI processes a lot of data by using models and algorithms. To make decisions or complete tasks, it learns from data patterns. Machine learning techniques are used by AI systems to enhance performance over time. AI is essential for streamlining supply chain processes, cutting costs, increasing customer happiness, and empowering businesses to successfully navigate the complicated and changing business environment of today. As technology develops and supply chain management becomes more data-centric and networked, its significance is anticipated to keep expanding. It has a wide range of applications in supply chain management, helping organizations optimize their operations, reduce costs, improve customer satisfaction, and enhance overall efficiency. AI processes massive volumes of data by employing models and algorithms. In order to make decisions or complete tasks, it learns from data patterns. AI systems can use machine learning to gradually enhance their performance. AI-based solutions have emerged as the new paradigm, allowing businesses to automate repetitive tasks thanks to their scalability and agility. AI enables robots to learn from past performance and optimize workflows, enhancing operational effectiveness and cutting costs.