The crucial role of AI in building sustainable supply chains

Phillip Teschemacher, Asia Pacific (APAC) President, Kinaxis, spoke to TechTouch about what AI can do to enhance supply chain management.

Q: How has technology changed supply chains recently, and what’s next?

Teschemacher: We’ve witnessed a massive shift in supply chains – the pandemic exposed significant gaps in supply chain planning operations for many companies, and the disruptions have since continued with geopolitical tensions, piracy, and increasing pressure for environmental responsibility. This shift in mindset has businesses ramping up their investment in supply chain resilience and has prompted many technology innovations.

Discussions around AI and its advancements in recent years have shown the potential to deliver better outcomes while preserving the speed and agility needed to navigate modern supply chain challenges. We will continue to see further progress in AI and machine learning. It is, however, essential to recognise that AI is not a silver bullet for solving all supply chain problems – the most powerful combination is for humans and AI to work together.

Q: How can AI help businesses handle supply chain disruptions and work more efficiently?

A: AI helps businesses manage disruptions by offering predictive analytics, real-time visibility and automation. It enhances efficiency by automating routine tasks like inventory management and order processing and can reduce errors while improving operational flow.

AI helps planners cut through the noise of all the competing factors influencing demand to get to the signals that matter most. Machine learning dives into vast data pools, uncovering key demand drivers, and predicting future trends so that planners can make smarter, data-driven decisions that positively impact business.

Q. Can AI help predict and manage risks in supply chains, especially in fast-changing regions like Southeast Asia?

A: AI enhances the ability to adapt quickly to changes and mitigate risks. It can leverage vast amounts of data to identify trends, disruptions and opportunities in real- time. It can analyse tensions, weather, economic issues and local markets to forecast potential risks like shutdowns, transportation issues or labour shortages. It can use learning models to evaluate historical data and anticipate demand fluctuations, optimise inventory levels and identify alternatives when there are disruptions.

What new technologies can make supply chains stronger and more eco-friendly?

Source: Kinaxis. Phillip Teschemacher.
Source: Kinaxis. Teschemacher. 
There is a big focus on supply chain resiliency and sustainability. Many companies are investing in tools to make their supply chains more efficient and agile resulting in less waste of resources, excess materials, time, and money. Less waste means less harm to the planet.

Some of the solutions businesses are turning to provide end-to-end transparency, combining multiple streams of data into one single source of truth, and empowering planners to make better decisions, faster. Technology can also offer more timely and accurate emissions data allowing businesses to plan for and make decisions with lower environmental impact.

How can businesses adopt new supply chain technology while keeping it affordable and sustainable?

Starting with scalable solutions, like cloud-based software, reducing upfront infrastructure costs and allowing businesses to pay for what they use. Integrating AI analytics can help optimise operations, cutting down on waste and inefficiencies. Prioritising phased implementation with a long-term focus on ROI and incremental improvement can help manage costs.


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