Barcelona, August 20, 2024.- Siemens’ digital division has published a reflection on the current implementation of AI solutions in the supply chain. Still, there are advantages and disadvantages:
Technology also plays a crucial role in this effort. As companies build more visibility in their supply chain, it’s important that they bring the digital and the real world together through digitalization and AI. In particular, the use of digital twins (virtual models of real-world products or processes) can help an organization visualize the end-to-end supply chain throughout the planning process and optimize each stage accordingly. From the outset, companies should be making digital twins of every single stage. In doing so, they can collect robust data, optimize their processes, and set themselves up to bring AI into the picture.
Though AI has garnered more hype in recent years, especially with the launch of ChatGPT, it’s not exactly new. Machine learning, for instance, has been an important part of the supply chain manager’s toolkit for some time. With the help of AI, companies can optimize their data and make better decisions based on that information. And as companies work to break down their silos, AI can help connect different parts of the process so that everybody is working with the same information in real time.
But as with any technological supports, AI alone will not solve an organization’s supply chain problems, and it should not be used to replace human labor, which, despite some misguided fears, remains an essential part of a company’s success. Implementing and executing AI-driven solutions requires strategic thought, hard work, and human minds. While it can certainly help companies become more efficient and resilient, AI is not a magic bullet.
As companies seek to combat disruption in today’s markedly unpredictable environment, they would do well to prioritize the removal of silos before anything else. As they do so, they can bring in digital twins to support them in that process. And as a final aid, AI can help optimize their data and decision-making processes in real time. Disruption is an inevitability today and in the years to come, but companies that can embrace that reality, promote collaboration and utilize technology to their advantage will be primed to meet the challenge.
Analysis published by Siemens Digital
Transportation & Logistics Software 