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The Application & Impact of Artificial Intelligence on Digital Supply Chain

The impact that Artificial Intelligence (AI) has on digital supply chain can be found across various functionality, such as inventory management, logistics, procurement practices, customer service and demand forecasting. This article explores the use of AI on various key functional areas and discusses the challenges of job security, talent gap, and ethical issue.

Inventory Management and Demand Forecasting

The holy grill of inventory management and demand forecasting is to find the sweet spot of balancing inventory levels and consumption levels. Having too much stock drives up inventory cost and having too little risk losing out of potential business. This is especially important for products which are time sensitive in industries like horticulture industry and electronics where with each passing day, food will risk turning bad and electronics growing more obsolete.

An example is the use of Multi-Echelon Inventory Optimization (MEIO) module.

MEIO automatically seeks the optimal balance of inventory at the right locations, and provides optimal inventory parameters and positions by stocking location to establish optimal buffer locations and quantities. Using MEIO can reduce total inventories by upwards of 30% while maintaining or improving customer fill rates.


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Jason Ng, GDSCM
Jason Ng is currently a planner and was previously an Engineer on Reliability and Inspection. He has developed a keen interest on the use of big data and artificial intelligence. He is a qualified member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Jason holds a Bachelor of Engineering degree from Nanyang Technological University, and he is completing the course on Graduate Diploma in Supply Chain Management (GDSCM) at SIPMM Institute.
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