Assignment#2

Name: Hassan Mohy El-Din Hassan Ali

(A1) Reflect on the article you´ve just read and identify other applications for the tech solutions
presented.

AI is intelligence exhibited by machines such as problem-solving or learning.

It can be applied in two ways:

a. Automating processes and actions so they can operate without the need for human intervention
b. Assisting the human decision-making process in day-to-day operations by reducing errors and
identifying bias, especially in data analysis
1. AI applications in logistics

Warehouse logistics and transport operations generate huge volumes of data. To gain full benefit from
this data we need to apply analytic tools to gain better insights. Machine learning techniques can be
used to streamline and automate processes such as load forecasting and vehicle scheduling. New AI
software includes functionality that teaches computers how to provide real-time information from the
raw data, on which key decisions then are based. Advanced applications such as autonomous vehicles
are being tested, but with mixed results. DHL says that its use of autonomous forklifts is “reaching a
level of maturity” in warehouse operations.

Automated guided vehicles (AGVs) have been operating in industrial environments since the 1950s, and
until recently were largely incapable of autonomous navigation without physical path guiding
mechanisms such as wires, tracks, or magnetic tapes. With incremental improvements in AI and
navigation technologies such as simultaneous localization and mapping, and machine vision, AGVs can
enable automated material handling across traditional manufacturing boundaries by moving between
buildings.

2. Reducing wasted admin time

Businesses spend hundreds of hours per week doing manual, paper-based processes and checking
discrepancies and errors as well as chasing suppliers. Many of these activities can be automated.
Technology vendors such as IBM, Google, and Amazon have released products that utilize artificial
intelligence such as “virtual assistant” AI bots such as Alexa and Siri.

3. Supply chain planning

ML can provide the best possible demand scenarios based on intelligent algorithms and machine-to-
machine analysis of big data sets, using work tools that run in a continuous loop. This kind of capability
could optimize the delivery of goods while balancing supply and demand, and wouldn’t require human
analysis except for the setting of parameters.

For example:

A business that sells furniture (like IKEA) might be able to use the Demand Guru platform and predict
the everyday demand for different models showcased in one of their brick and mortar stores.
Using historical sales data of for all the models which includes information like date and time of
purchase, number of items purchased etc., machine learning models in Demand Guru might potentially
‘learn’ a particular trend in terms of seasonality, (such as an increase in sales during a particular holiday
season). Additionally, the platform might be able to take into account weather data and news events to
find correlations with sales patterns such as identifying that days accounted for more sales on weekdays.

An additional feature that comes with access to Demand Guru is the LLamasoft’s Data Cube, which the
company claims to be a collection of curated weather and economic time-series datasets that can get
the platform’s learning capability started on recognizing cause and effect relationships for predicting
future demand. This might be access to data like temperatures and rainfall levels for a particular city in
the US or data about mergers and acquisitions in a particular industry.

4. Supplier management

Supplier risk is a huge concern for global organizations that have decentralized operations and AI can
help. Data that is generated from supplier activity such as physical audits, supplier performance
assessments and product failures provides an important basis for sourcing decisions. Supplier
relationship management (SRM) is still mainly a human activity based on the use of available data,
however stale or incomplete. Machine-to-machine automation can provide multiple ‘best supplier
scenarios’ based on whatever parameters the user chooses.

Chatbots for marketing and operational procurement

The increasing popularity of chatbots is making it harder to ignore how AI is helping shape not just the
daily logistics but also the B2B marketing landscape and operational procurement for supply chain
industries.

A chatbot is a computer program that simulates human conversation using auditory or textual methods.
It communicates with your customer inside a messaging app, like Facebook Messenger, and is similar to
email marketing without landing in an inbox. Mimicking a human conversation, chatbots currently allow
for increased customer engagement through messaging app technology that isn’t yet saturated with
marketing. They are just one of the many ways to integrate AI and marketing.

There’s so much more than these 4 examples to consider when discussing AI and the supply chain:
prediction of delivery arrival times to the warehouse and to the customer, cargo sensors, automated
purchasing, financial applications…the list literally may be endless.

5. Artificial intelligence success factors

“Without real-time information, an AI tool is just making bad decisions faster”, says Greg Brady, CEO of
One Network Enterprises, a global provider of AI solutions. He has identified 8 things that AI needs to
deliver value in the supply chain.

a. Access to real-time data. Stale data results in poor decision-making.

b. Access to external data. AI needs access to external and downstream data otherwise the results
will be no better than that of a traditional system.
c. Support for the end goal despite constraints – high consumer service levels at lowest possible
cost.
d. Decision making must consider change vs the cost of change. An AI tool must consider trade-offs
in cost vs benefits when making decisions.
e. Decision process must be continuous: self-learning and self-monitoring.
f. The AI system must be looking at the problem continuously and reset and fine tune as required.
g. AI engines must be autonomous decision-making engines
h. Significant value can only be achieved when the AI makes intelligent decisions and also executes
them across trading partners.
i. AI engines must be highly scalable.
j. The system must be able to process huge volumes of data very quickly. AI solutions must be able
to make smart decisions, fast, and on a massive scale.
k. Must have a way for users to engage with the system.
l. Users need visibility into decision criteria to enable them to understand issues that the AI
system cannot solve. Users must be able to monitor and even override AI decisions when
necessary.