This is my third Editor’s Note on artificial intelligence, or AI. It’s a crucial topic and, whether you own one factory or dozens, you’ll have noticed that AI is already replacing tools that factories have been using for years — and is predicted to continue to do so.
One area where AI will make a big difference is in inventory control. What with having to maintain inventory at the needed levels, deal with the rapid rises and falls in costs for individual stock units, and ride the cyclical highs and lows of orders for new homes, it’s a wonder that most Purchasing Managers haven’t packed their bags and left the industry.
AI can take some of the pressure off in several ways. In the first instance, by analyzing historical data, market trends, customer behavior and other relevant factors to forecast demand accurately. Its ability to predict future demand will help factories adjust their inventory levels accordingly, thus minimizing excess, or insufficient, stock levels.
The technology can look at factors such as lead times, storage costs, production schedules and customer demand patterns. Using this data, it can continuously analyze and update existing inventory levels to avoid stockouts, while minimizing holding costs.
AI can track and manage the supply chain, ensuring timely delivery of raw materials and components to the factory. AI-powered systems can automatically place orders with suppliers when stock reaches predefined thresholds and can optimize the entire supply chain process for efficiency.
The technology will even make special orders less of a problem by analyzing factors such as order specifications, available inventory, production schedules and shipping constraints. It can then recommend the most efficient ways to fulfill special orders and allocate materials accordingly.
Here is a look at a few of the top AI-based inventory control systems.
IBM Watson Supply Chain offers AI-powered inventory optimization and supply chain solutions. Their platform utilizes advanced analytics, machine learning and AI to improve demand forecasting, inventory optimization and supply chain visibility.
Oracle offers AI-powered inventory management solutions as part of its suite of supply chain management software. Their platform uses machine learning and predictive analytics to optimize inventory levels, reduce stockouts and improve overall supply chain efficiency.
SAP provides AI-enabled inventory control and supply chain management solutions. Their platform leverages AI and machine learning algorithms to optimize inventory levels, improve demand forecasting and enhance supply chain visibility and collaboration.
Logility offers AI-driven inventory optimization and supply chain management solutions. Their platform uses advanced analytics and machine learning to optimize inventory levels, improve demand planning and enhance supply chain responsiveness.
Remember that the AI landscape is rapidly evolving, and there may be new players and advancements in the field that I’m not aware of. Always research and evaluate different companies based on your specific requirements and industry needs.
