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IMPACT OF AI AND ML ON LOGISTICS & SUPPLY CHAIN Technology should be targeted and implemented across people, places, and processes over the entire chemical supply chain in order to bring in logistics efficiency
T SANKET SHETH
MD & FOUNDER ELIXIA TECH SOLUTIONS
echnology has become the most crucial catalyst in bringing about supply chain transformation and optimizing its future performance better than ever before. Artificial Intelligence (AI) simulates human intelligence in the most accurate way possible. It collects data, analyzes information, and provides cognitive decisions to enhance the overall supply chain performance. Machine Learning (ML) is a subset of AI and is very specific to how a machine performs on the basis of past experiences. AI and ML together come as a great help when it comes to optimizing logistics and supply chain processes. NEED FOR TECHNOLOGY IN CHEMICAL SECTOR When it comes to the chemical sector, the logistics and supply chain is particularly different from other industries’ processes. This is mainly because of three reasons: (i)Production and consumption of the chemical products are mostly at distant and separate locations. Hence, manufacturing, storage, transit, and distribution need to be
AI-led supply chain optimisation software is the best solution when it comes to route and load management of vehicles. Managing the distribution of chemicals involves strong planning of packaging, loading, and even optimising the routes for faster and timely deliveries.
aligned well to ensure the chemicals hold their composition throughout. (ii) 96% of manufacturing goods depend on chemicals for direct or indirect usage. A slight delay in the unavailability of products can affect the operations of other major industries. Hence, the industry needs to work round the clock to meet the market requirements. (iii) The product if not handled properly can itself be hazardous in nature and can impact humans, machinery, and other assets involved in the management of the products. So for obvious reasons, one needs to be extra cautious while working with chemical products. In order to bring in logistics efficiency, technology should be targeted and implemented across people, places, and processes over the entire chemical supply chain. SUPPLY CHAIN REVOLUTION IN CHEMICAL INDUSTRY The nature of the chemical industry products and by-products demands highly efficient solutions to manage the entire supply chain. Safety, quality, and reliability of people and processes need to be kept in mind throughout the logistics and supply chain journey. Starting from the manufacturing operation, the target of technology is to predict the demand and produce the right quantity of products at the right time. AI-enabled supply chain along with machine learning algorithms then capture real-time data along with information from the production lines to ensure that a balance of demand and supply is achieved.
