Importance of Supply Chain Management | Role of Supply Chain Management

A supply chain is a process of traversing the products right from the manufacturer to the end consumer.

Every sector comprises a dedicated team to manage the supply chain of products........ http://blockchainhints.mystrikingly.com/blog/how-can-blockchain-help-in-improving-supply-chain-management

Supply chain management is a complex medley of processes in which even a slight lack of visibility or synchronization can lead to enormous losses and overheads.

But with the recent developments in AI & machine learning, we can now harness historic and real-time supply chain data to discover patterns that help us understand what factors influence the different aspects of the supply chain network.These insights help companies in getting a competitive edge, streamline processes, cutting down on costs and increasing profits, and leveraging recommendations to enhance the customer experience.

According to Gartner, at least 50% of global companies would be using AI-related transformational technologies such as Machine Learning in supply chain operations by 2023.5 Ways In Which ML Acts As A Game Changer In Supply Chain Management 1.

With big data analytics, manufacturers can analyze different types of data including past sales demand, chanel performance, product returns, POS data, promotions data etc.

Unexpected and extended downtimes can result in out of stock situations and lost revenue.In order to avoid these situations, companies are replacing the reactive and inefficient break-fix service model with proactive maintenance approaches – predictive and preventive maintenance.This involves using machine learning to analyze data from smart parts and sensors and predicting when a machine/part will fail and determining the right time for repairs and  replacements.This allows companies to reduce excess inventory, mitigate the costs and disruption caused due to unscheduled downtime and ultimately improve customer satisfaction and brand loyalty.In addition, machine learning can also help understand how to extend the life of the existing assets, determine common reasons for failure and take necessary proactive steps.3.

Logistics Last mile logistics in supply chain management is prone to operational inefficiencies and costs upto 28 percent of the total cost of the delivery.Some common challenges in this area include:Not able to find a parking spot for large delivery trucks near the customer’s destination and having to carry the package to its destination by walkCustomers not being at home to sign the receipt of items and thus causing a delay in deliveryDamages to the package during this last leg of deliveryIn most cases, it’s very difficult for companies to identify exactly what’s going on during this last mile.