In many ways, the coronavirus pandemic disrupted operations and slowed the world down. People retreated to their homes, businesses closed and unemployment spiked. However, one aspect of company operations that was affected in the opposite way was the rapid adoption of digital technologies, particularly artificial intelligence (AI).
THE TRUTH REVEALED
The pandemic ripped the blinders from the eyes of many of the world’s largest companies. Within a matter of weeks, the Chinese suppliers they had relied on had completely closed down. Worse still, there were no viable alternatives waiting in the wings. Whether it was a protective face mask shipment, facial tissue or the electronic components integral for the manufacture of smartphones and computers, companies had no Plan B. This was, at least in part, due to the fact that few had invested the significant amount of time and money required to fully map their supply chains and all of their sub-tiers.
THE ADVANTAGES OF AI
Artificial intelligence simply means that machines are programmed to act in the ways that humans do, performing tedious or repetitive tasks faster and with greater efficiency. One such job is the vetting of suppliers. Instead of human procurement specialists rifling through written or online supplier options, an automated system can quickly scan the entire panorama of offerings, recording and evaluating the costs and benefits of each. It then becomes possible for flesh-and-blood managers to make more diversified decisions that do not place the entire supply chain burden on the shoulders of one company or region of the world.
AI’s efficiency also positions companies more optimally to deal with future crises. Wars, disease, terrorism and natural disasters are unavoidable. However, companies that augment their human capabilities with those of AI can minimize their effects by dipping from a diversified pool of suppliers.
APPLICATIONS FOR AI FOR TODAY’S MANUFACTURING COMPANIES
In addition to assisting procurement specialists in vetting potential suppliers, AI can provide numerous other benefits. These include the following:
• Chat bots can communicate with suppliers regarding routine tasks, send supply requests, answer internal questions and receive and file payment documentation;
• Via machine learning, inventory and other supply chain decisions can be automated;
• Warehouse and inventory management can be optimized;
• The language barrier can be reduced or eliminated using AI and natural language processing (NLP) innovations;
• AI can use data such as credit scoring and audit results to continually investigate potential suppliers to promote diversification.
Adopting AI and integrating it into a company’s business operations can enhance efficiency, help to mitigate risks and enable the organization to remain competitive in the tempestuous global environment. Manufacturers may also use PCD Tools that are programmed with machine learning or partner with electronic contract manufacturing companies that have implemented AI in their processes to create better equipment in an efficient manner.
As the effects of COVID-19 continue to ripple through every aspect of our lives, manufacturers are faced with many difficult choices. However, one goal seems unavoidable for those who want to remain viable and successful in difficult conditions. Making artificial intelligence an integral part of procurement and supply operations is one of the most promising strategies that manufacturers can adopt to remain competitive.