Role of Artificial Intelligence in Supply Chain Management:
A study of Electronics Industry
Role of Artificial Intelligence in Supply Chain Management: A study of Electronics industry
• it has to be very very focused work. here are do’s and don’ts
Donts
Do not explain definition (no definition)
No general information (Never)
No other industry examples
Nothing general
Dos
Focus only on industry
Focus real example (why, how and where) in industry
The only real situation, cases, and examples from industry
Align the learning with UAE perspective or the Arab world
• Introduction: What is the importance and value of Artificial Intelligence in Industry that you selected.
• AI in Industry: real examples, Cases, and Situation in the industry you selected Learnings
• Future Scope of AI in Arab Word: AI in the Arab World and examples of the Arab world
• Conclusion
Role of Artificial Intelligence in Supply Chain Management:
A study of Electronics Industry
Artificial intelligence has a positive impact on supply and chain for the electronics industry. The AI is based on four factors as it plays a role in supply and chain management. The four factors include optimization, prediction, decision support as well as modeling and simulation (Soleimani, 2018). AI has an impact on the manufacturer and the supplier of electronic equipment. Machine learning has two major benefits which are the improvement of the performance of supplier delivery and minimization of the risks. The electronic companies have made significant investments especially in machine learning to improve the manufacturing processes. The technology has contributed to lowering the cost of labor including the reduction of defects in production, increase in transition time and improve the speed of delivery.
On the other hand, AI technology utilizes Genetic Algorithms for solving several problems in the chain supply network (Soleimani, 2018). The technology is used in finding the minimum cost vehicle routes that are used in distributing the electronics products. The process ensures that the products reach the customer within the required time and according to the demand. Additionally, other technologies such as robotics can be in self-driven vehicles to execute some tasks in the electronics industry. AI enhances network optimization which results in an improvement of efficiency. Moreover, AI technology has a role in the control of the inventory within the network. Proper control of inventory enhances the process of the decision making process which is applied in making predictions and analysis of consumer behaviors.
Artificial intelligence is important in creating customer relationship management (CRM) whose aim is to increase the trust of the manufacturers of electronic products (Min, 2009). The process helps in building a long term relationship between the business and the customers. CRM facilitates the activities of SCM. A strong CRM is applicable crucial in improving service delivery, building strong bonds and ensuring customer loyalty in the industry. The sustainability of the electronics industry entirely relies on its ability to sustain the CRM.
The other importance is reducing the issues of order-picking problems. The order picking issues can increase the cost of warehouse operations (Min, 2009). Therefore the process can be solved by the application of AI which enhances the order-picking efficiency. The system can be designed in a way that facilitates the picking of orders from a specific zone. The application of intelligent techniques such as the agent-based system helps in solving such cases because it increases the value-added services and e-fulfilments. The application is important in the electronics industry especially in the management of inventory.
AI in Industry
IBM Company has incorporated AI in its supply and chain management. The technology is employed in the prediction, periodization, and mitigation of risks and disruptions. The end-to-end supply chain visibility in IBM is one of the areas in which AI has gained its relevance in the industry (IBM, 2020). The system is used in connecting and viewing the data located in different sources which enhances the delivery of services. Additionally, the AI has been applied by the company in the prediction and mitigation process. The period of mitigation is reduced significantly from many days to a few minutes. Moreover, IBM has an integrated AI system in order management. The order management process enhances the speed of serving customers especially the personalization services (IBM, 2020). The IBM management system has the capability of ensuring real-time inventory visibility on all the points across the network, dynamic order monitoring depending on the dates. The other area of application is the optimized sources that are employed in finding the lowest cost of serving. The order management system which is an application of AI, has gained importance in the company especially by connecting the customers and availing of products wherever they are located.
Another case example is the application of AI in the manufacturing of electronic products, which ensures that products are available according to demand and supply (ASME.org, 2018). The products are integrated with features that help in movement along with the supply and chain network. The technology is used in controlling the quality of products, shortening the period used in the design process and also contributes to reducing the number of wastes. In such cases, artificial intelligence is made applicable through the use of software products that are used in face identification such as photographs. For instance, Siemens Company has utilized the AI in its functions especially in the prediction of the equipment that should be supplied to the customers (ASME.org, 2018). The process has also been extended in predicting the equipment that should be repaired. The company analyses the intelligence data and concludes several factors such as the condition of the machines and the maintenance processes. The technology is therefore used in ensuring the continuous flow of supply chain management. The process of maintaining the equipment helps increase the availability of the products to the customers. Also, Siemen Company uses robots in its systems to ensure efficiency in the delivery of services.
Microsoft is also an electronic company that has incorporated AI in its system. AI is one of the terms in Microsoft’s vision statement (Marr, 2019). The electronic company has a focus on having smart machines. Currently, Microsoft has already incorporated intelligent capabilities such as Cortana and Office 365 among others. It also provides AI Services (AIaaS) which has a significant role in SCM. Machine learning has become more applicable in Microsoft Company specifically by the use of Cortana Virtual Helpance has become of importance especially by facilitating communication through the use of Skype which is in turn, used in enhancing the movement of goods. Microsoft Company has also introduced new technology used in accelerating the machine learning algorithms. The technology is known as Project Brainwave which that strengthens other technological systems within the SCM network.
One of the situations where AI has been utilized in the electronics industry is when most of the channels are not responding and delivering the intended goods and services to the consumers. The leaders in the electronic industries are trying to strategize on how, when and how to deliver their goods to the customers (Marr, 2019). Leaders of the Electronic industry are focusing on situations whereby the customers are located far from the production points and should be served with goods and services at their convenient time and whenever they need them. Such situations can lead to several questions such as; where are the drivers? Where are the customers? Such questions prompt the leaders to make appropriate decisions. The use of AI has become a crucial tool that aids in making real-time decisions as well as long-lasting decisions such as the location of warehouses. According to Forbes magazine, most of the CEOs in the electronic industry have emphasized the need to invest in artificial intelligence to help in solving issues in SCM.
AI in the Arab World
AI in the Arab world has gained applications in several sectors and it is projected to grow in the future. The growth of technology in the Arab world has been influenced by the growth of industries and the need to improve the delivery of services to consumers. The Arab region consumes most of the technologies. The technologies are promoted by Arab entrepreneurs who have contributed immensely in shaping the technologies. Several technologies have been introduced in the region which includes access to software and cloud computing among others. Several products have emerged from the region and acquired by Amazon Inc. Examples of such products include Souq.com and Et3arraf, among others (World Economic Forum, 2018). The artificial intelligence has grown as a result of the introduction of robotics. A good example is ADASI which specializes in autonomous robotics. The other area of application of AI is in the oil and gas industry. For instance, NAR is considering introducing the autonomous pipeline inspection (World Economic Forum, 2018). The Arab Robotics Association has also contributed to the expansion of technology in the region. The association has been engaging in competitions and activities and the utilization of AI.
AI in the Arab world continues to thrive and expand to other sectors. One example is the Dubai International Airport that uses AI in most of its functions. Some of the areas of application include AI customs officials, AI Baggage Handling, and Air Traffic Management among others (Marr, 2019). The United Arab Emirates (UAE) is leading in the adoption of AI in several sectors and the government. The UAE is first growing and the technology is being explored for the future.
According to the report by Price Waterhouse Coopers report, most of the governments and the businesses in the Middle East continues to shift towards AI and advanced technologies (PricewaterhouseCoopers, 2017). The report further indicates that the Middle East is expected to gain 2% ($320 billion) of the total global benefits from investments in AI by 2030. The figures indicate that the Arab world is making an effort of using the technologies in the systems. Saudi Arabia is expected to accrue more from technology and this will be reflected in the GDP. The use of AI in the Middle East is expected to disrupt markets which will eventually increase innovation.
Several regions in the Arab world have already embraced the AI and the new digital age. The growth of cognitive and AI systems is expected to increase by 32% every year. The countries that have shown a commitment to utilizing AI include Saudi Arabia, the UAE, and Qatar (PricewaterhouseCoopers, 2017). The growth is evident from the businesses that have invested heavily in the technologies and have gained support from the government and individuals. The factors that facilitate the development of AI in the region include infrastructure and the presence of skilled labor.
The industries such as the electronic industry can utilize the AI in the automation process and improvement of the products (PricewaterhouseCoopers, 2017). AI technology facilitates the automation process and the industries will gain from labor productivity. On the other hand, product enhancement can be done through the personalization process, improving the quality of the products and saving on time. Such changes are expected to be the foundation of the growth of AI in the Arab world. The gains are only expected to be realized in the sectors embrace the technology. The oil and gas industries are expected to expand as a result of the integration of the technologies. The effect is likely to be reflected in the GDP of different countries which is one of the factors that determine economic growth.
The AI policy is one of the factors that will promote the growth of AI in the Arab world (Future of Life. Org, 2018). The UAE government introduced the UAE Strategy for Artificial Intelligence policy. The policy is aimed at enhancing the adoption of AI. The AI strategy is guided by themes such as the development of skills and capabilities that will facilitate the use of AI. Due to such developments, AI is expected to grow in the Arab world.
Conclusion
In conclusion, AI is important in SCM and especially in electronic industries. The application of AI in the electronics industry has enhanced efficiency and speed in the delivery of services. Goods can now reach consumers within the shortest period and customers can interact directly with business owners. The development of AI has been proven beneficial as from the outlined examples, cases and situations. Electronics industries can control their production and minimize possible wastes through the application of AI. On the other hand, the Arab world is expected to gain more from the AI technology. Various governments in the UAE and the Middle East have already embraced technology. Some of the efforts shown include the introduction of AI policy, expansion of AI in government sectors, and support of the activities of AI. The success of AI depends on proper infrastructure, proper training and skills as well as ensuring the security of the systems.
References
ASME.org. (2018). Artificial Intelligence Transforms Manufacturing. Retrieved from https://www.asme.org/topics-resources/content/artificial-intelligence-transforms-manufacturing
Future of Life. org. (2018). AI Policy – United Arab Emirates. Retrieved from https://futureoflife.org/ai-policy-united-arab-emirates/?cn-reloaded=1
IBM. (2020). Order Management Software. Retrieved from https://www.ibm.com/supply-chain/order-management-software
Marr, B. (2019). The 10 Best Examples Of How Companies Use Artificial Intelligence In Practice. Retrieved 20 February 2020, from https://www.forbes.com/sites/bernardmarr/2019/12/09/the-10-best-examples-of-how-companies-use-artificial-intelligence-in-practice/#59a2a3017978
Marr, B. (2019). The Amazing Ways Dubai Airport Uses Artificial Intelligence. Retrieved 20 February 2020, from https://www.forbes.com/sites/bernardmarr/2019/07/26/the-amazing-ways-dubai-airport-uses-artificial-intelligence/#310850a2a21d
Min, H. (2009). Artificial intelligence in supply chain management: theory and applications. International Journal of Logistics Research and Applications, 13(1), 13–39. doi: 10.1080/13675560902736537
PricewaterhouseCoopers. (2017). The potential impact of AI in the Middle East. Retrieved from https://www.pwc.com/m1/en/publications/potential-impact-artificial-intelligence-middle-east.html
Soleimani, S. (2018). A Perfect Triangle with: Artificial Intelligence, Supply Chain Management, and Financial Technology. Archives of Business Research, 6(11). doi: 10.14738/abr.611.5681
World Economic Forum (2018). The Digital Arab World Understanding and embracing regional changes in the Fourth Industrial Revolution. Retrieved from: http://www3.weforum.org/docs/WEF_Digital_Arab_World_White_Paper_2018.pdf
