Challenges with Supply-chain
- Category: Artificial Intelligence Education
- Date 25-10-2018
What is supply-chain?
We are surrounded with thousands of products and services such as cell phones, car, fruits, soda, baby soap etc. It is not necessary that all products consume and produce at the same time and same location. Here the supply chains come in a picture. It is a kind of web that connects the consumers with suppliers.
In supply-chain we manage the following variables between consumer and supplier.
- Information (order) or (status of order)
- Material (delivery)
- Money (transaction)
Purpose of supply-chain management
- Minimize cost
- Maximize profit
- Enhance customer services
- Increase customer satisfaction.
Problems with supply-chain system
1) Data visibility: This is the major problem with the supply chain system. Generally, the suppliers are located in a different place and a different zone and they don’t share all the information with others. Consequently, the visibility of data is restricted at different levels, which makes the process more cumbersome.
2) Complex Metrics: Modern system chain systems are not as simple as a link to the link system. Now It works like a web that includes multiple companies and suppliers and consumers, because of that, it is hard to build a good metrics system. Therefore, there is always a trade-off between breadth and validity.
3) High degree of uncertainty: It is very difficult of forecast the future of business due to high variability in demand, supply, customer interest, availability of raw material, unpredictable transit time, addition on new channels, global operations and so on.
So what is the solution ????
The newer technologies such as artificial intelligence, blockchain, advanced statistics, cloud computing, clustering, business analysis are probably a good solution to minimize the problem for the small and big businessmen.
For more detail please read my next article or contact me at manish.saraf@ogmworldwide.com