ARTIFICIAL INTELLIGENCE & SUPPLY CHAIN MANAGEMENT Group 8 Siddharth Nanda Srishti Arya Shubham Kumar Shubham Raj Tanuj chaudhry 01 Introduction What is artificial Intelligence ? What is Artificial Intelligence ? Artificial Intelligence is a method of making a computer, a computer-controlled robot, or a software think intelligently like the human mind. AI is accomplished by studying the patterns of the human brain and by analyzing the cognitive process. The outcome of these studies develops intelligent software and systems. Maximizing productivity by lowering uncertainty is the top priority across sectors in today's connected digital world. In addition, rising operational efficiency and supersonic speed demands highlight the necessity to take advantage of artificial intelligence's (AI) strength in supply chains and logistics. 02 Role of AI in supply chain Business Advantage Accurate Inventory Management The proper flow of goods into and out of a warehouse can be ensured by accurate inventory management. It can aid in preventing excessive stocking, insufficient stocking, and unanticipated stock-outs. The process of inventory management involves numerous inventoryrelated factors (order processing, picking, and packing), which can make it time-consuming and highly error-prone. Tools for supply chain planning that are AI-driven and can manage large amounts of data can be quite useful in this situation. Large datasets may be promptly analysed and interpreted by these intelligent systems, providing prompt advice on supply and demand predictions. Warehouse Efficiency A productive warehouse is crucial to the supply chain. AI-based automation can help with the prompt warehouse retrieval of an item and guarantee a smooth delivery to the consumer. Additionally, AI systems can expeditiously and accurately resolve a number of warehouserelated problems, as well as streamline complex processes and speed up labour. Enhanced Safety Intelligent planning and effective warehouse management can be made possible by AI-based automated technologies, which can improve worker and material safety. Data on workplace safety can be analysed by AI, which can then alert producers to any potential concerns.This enables businesses to respond quickly and forcefully to maintain the safety and security standards in warehouses.. Reduced Operation Cost Intelligent planning and effective warehouse management can be made possible by AI-based automated technologies, which can improve worker and material safety. Data on workplace safety can be analysed by AI, which can then alert producers to any potential concerns.This enables businesses to respond quickly and forcefully to maintain the safety and security standards in warehouses. On-Time Delivery As we previously noted, AI systems assist in reducing reliance on manual efforts, resulting in a faster, safer, and smarter overall process. This makes it easier to fulfil the promise of prompt delivery to the consumer. Traditional warehouse processes are accelerated by automated technologies, which also reduce the work required to remove operational bottlenecks in the value chain and meet delivery targets. 03 Challenges Faced by AI 4 key Challenges Challenges of AI in Supply Chain System complexities Usually cloud-based, AI systems demand a lot of bandwidth. The cost of this AI-specific hardware can end up being a significant initial expenditure for many supply chain partners because operators occasionally need specialised hardware to access these AI capabilities. Lack of trust in technologies Artificial intelligence is still a relatively young technology, it continues to attract investment from industry innovators.When implementing new systems, such as in warehouses, real people with years of experience may be replaced by computer systems that don't appear to have the same skill set. Data Restrictions I needs a significant amount of accurate data to function properly, but both the quality and quantity of information are lacking in many firms. Machine learning requires high-quality data in order to train algorithms and prediction models. Before implementing AI in the supply chain, data limitations should be eliminated to make it more available and incorporate as much 'real-time' data as possible into systems and processes. Operations Cost Most firms may encounter difficulty in implementing AI into supply chain due to the associated costs. Although the operating costs can be high, so can the initial upfront expenditures of investing in and integrating the technology. AI is intended to facilitate human employment by automating repetitive processes or facilitating improved decision-making. 03 Tools of AI Popular in Supply chain Tools of AI Predictive Analytics: Predictive analytics can be used to analyze historical data and forecast future demand patterns, inventory levels, and supply chain disruptions. Machine Learning: Machine learning algorithms can be trained on large datasets to make accurate predictions and optimize supply chain operations. Natural Language Processing (NLP): NLP can be used to analyze unstructured data such as customer reviews, social media posts, and emails to identify emerging trends and customer preferences. . Tools of AI Blockchain: Blockchain technology can be used to improve supply chain transparency and traceability by providing a secure and decentralized ledger of transactions. Robotics Process Automation (RPA): RPA can be used to automate repetitive and time-consuming tasks such as order processing, invoicing, and inventory management. Autonomous Vehicles: Autonomous vehicles such as drones and self-driving trucks can be used to improve delivery times, reduce transportation costs, and increase efficiency. 04 Case Study NYKAA NYKAA Objective Nykaa, a fashion and beauty retail brand, is a popular online beauty and health destination. With over 32,000 staff hours spent each month addressing and responding to support concerns, the organisation always provides a great customer and purchasing experience. It faced a hurdle because customers increasingly preferred self-service over communicating with representatives. As a result, Nykaa chose to automate its customer service in order to devote more time to other parts of the customer experience. Approach Nykaa teamed with Verloop.io to boost consumer engagement through chat support. It built a solution that allowed Nykaa to manage recurring requests such as cancellations, returns, shipping enquiries, replacements, refunds, and payment issues using bot-qualified questions. Nykaa was able to swap software systems smoothly because of the AI's wide range of integration options. The purpose of using AI and machine learning tools was to comprehend user intent and reply to queries in a tailored manner. Impact Nykaa has been able to respond to client inquiries with greater context after integrating Verloop.io, which has increased postpurchase customer happiness and strengthened customer loyalty. Nykaa managed almost 1.6 million different talks in the first 30 days. ‘ The necessity to manually assign conversations was removed when a client clicked to send the conversation to one of Nykaa's own specialists, who would then handpick products depending on the customer's needs. Bibliography https://dataconomy.com/blog/2023/01/23/artificialintelligence-supply-chain/#google_vignette https://indiaai.gov.in/article/indian-retail-brands-using-ai-5case-studies https://throughput.world/blog/ai-in-supply-chain-and-logistics/ https://www.logisticsit.com/articles/2022/09/28/four-aichallenges-businesses-face-in-the-supply-chain Thank You