AI and Machine Learning have revolutionised global supply chains... and the revolution’s not over yet

In the run up to Brexit we heard a lot about Just in Time Supply Chains, and now we’re seeing what happens when they go wrong: not just because of Brexit, but pandemic related bottlenecks too, as well as a severe shortage of truck drivers in the UK (well, that one is Brexit): McDonalds ran out of milkshakes, KFC ran out of chicken (“KF'' doesn't have the same ring), and on a (much) more serious note, global supply disconnects are currently hampering the distribution of influenza and COVID vaccines: not just the vaccines themselves, but production and delivery of adjuvants, needles and glass vials. In an ever more connected world, supply chain disconnects can spread rapidly across the globe in a matter of days… and its not all about milkshakes and chicken.

The National Academies of Sciences, Engineering, and Medicine (www.nationalacademies.org) has responded by setting up a committee to establish how “novel technologies and advances in translational research can be scaled up to sustain vaccine distribution capacities”…but they won’t need to look far: it could be the shortest lived committee since the House Committee met to impeach Donald Trump for the second time. Because the answer’s staring them in the face right now…the answer is AI and Machine Learning.

Nothing Short of a Revolution

Artificial intelligence and Machine Learning combine powerfully to speed up and rationalise supply chains: reducing cycle times and supporting continuous process improvement, which is why, in this year’s Report on Distributive Technologies, the international advisory company Gartner (www.gartner.com) predicted that use of machine automation was set to double, and by the end of the year 50% of supply chain organisations will have invested a whopping $500 Billion in “real time transportation visibility platforms”: or AI for short, remember Gartner come from the USA: the country that gave us the “non permanent, flexible accommodation structure” (or tent for short). 

So why are these technologies so important, and what do they do?

Increased Visibility

Well, fundamentally, Machine Learning and AI build increased visibility into the distributive process (Gartner got that one right, in their clunky way): meaning more accurate capacity planning, lower costs (because inventory levels are optimised), and greater output: all of it delivered at a pace and with a complexity the unsupported human mind couldn’t hope to match. As the flow of items into and out of the warehouse becomes more transparent, contingency planning becomes increasingly straightforward too, meaning there are fewer bottlenecks (think Brexit and, of course, COVID).

The technologies work by processing and analysing huge amounts of data at unbelievable speeds, whilst at the same time using complex algorithms to predict new demand patterns and seasonal trends. The result is a major increase in operating efficiencies at all stages in the supply chain, from manufacturing through to customer services, and all stages in between: so, predictably enough, McKinsey found in a recent study (www.mckinsey.com) that the result is cost savings across the board, combined with increased revenues for companies making use of AI and Machine Learning. 

Which is good news if you like milkshakes and chicken nuggets, but on any basis it’s nothing short of a revolution for our connected world, and we’re watching it unfold before our eyes.

Executive Overview

AI and Machine Learning are changing our ever more connected world for the better: it is, indeed, nothing short of a revolution, and I can’t wait to see what happens next.

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