5 Ways AI is Changing Supply Chains The article "5 Ways AI is Changing Supply Chains" by Gary Forger explains how artificial intelligence (AI) has already made its way into the supply chain. From managing initial demand to final-mile delivery, AI is leaving its mark in every aspect of the supply chain. The article describes five stories that exemplify the trajectory of AI in the supply chain. The applications range from last-mile and on-demand delivery to on-demand manufacturing, demand forecasting, and document processing. The first example given in the article is the optimization of on-demand delivery with AI. Artificial intelligence has been essential in optimizing routes that enable deliveries in one hour or less. The CEO and founder of Senpex, Anar Mammadov, explains that AI is the centerpiece of their multi-route optimization engine to coordinate all the factors and make deliveries on time. Senpex has scaled its on-demand delivery service to 10 states and 8,000 drivers since its founding in 2017. Senpex has done relatively well regarding customer satisfaction, boasting a 98% satisfaction rate across its 65 marketplaces. The second example discusses how AI can help grocers and other retailers with on-demand forecasts. Troy Prothero, the Senior Vice President of Product Management, Supply Chain Solutions at Symphony AI Retail CPG, states that AI is a finely tuned instrument for managing forecast accuracy, store service levels, inventory levels, and more. AI can address a much broader range of data than standard statistical analysis, going beyond historical sales. The third example is about on-demand manufacturing. Voodoo Manufacturing uses AI and machine learning to drive its on-demand 3D printing service. The company uses a combination of algorithms to price and route orders, optimize manufacturing and shipping schedules, and detect and troubleshoot printer errors. AI also helps to minimize waste and reduce production times. The fourth example is the use of AI for demand forecasting. Splice Machine has developed an AI-based demand forecasting solution that uses machine learning algorithms to accurately identify demand patterns and predict future demand. The solution can also optimize inventory levels to reduce waste and lower costs. The fourth example talks about the use of AI in document processing, which can automate the process of verifying and approving invoices, purchase orders, and other documents. This automation can reduce errors and improve the speed of processing. The author notes that AI can also identify patterns in supplier behavior, such as late payments or delivery times, to flag potential issues. The final example discussed in the article is the use of AI in document processing. Rossum uses AI to automate the routing, processing, and final disposition of procurement documents, such as purchase orders, packing lists and invoices, and has been proven to condense the supply chain by removing friction and gaps between stages in the handling of procurement documents. In conclusion, the article emphasizes the importance of AI in optimizing the supply chain and the various applications of AI in today's supply chain. The author also reminds readers that AI is still an emerging technology and that there is still much to be discovered about its potential in the supply chain. However, as companies such as Senpex, SymphonyAI Retail CPG, and others have shown, AI can provide significant benefits in efficiency, accuracy, and customer satisfaction. References: Forger, G. (2023). 5 ways ai is changing supply chains: Used in everything from delivery to forecasting, artificial intelligence is leaving its mark. Supply Chain Management Review, 27(2), 34-39.

Questions: 1. Can you name an organization that utilizes AI, and what do they use it for? 2. Is AI a threat to manpower? Justify your answer.