Responsible Use of AI in Manufacturing and Supply Chain- Yvonne E. Hyland
Manufacturing and Supply Chain use of AI is already delivering substantial benefits in terms of efficiency, growth, and enabling ESG goals such as reduced carbon emissions. Manufacturing and supply chain Leadership and Boards must gain insight into the digital and AI opportunities they need to embrace in order to remain competitive.
The hype and fear with regards to AI has become a daily topic of discussion, however it is worth revisiting the notion that when used responsibly, AI can deliver value in all facets of life and business. Responsibly, in this context, is alluding to the need for appropriate checks and balances, and efficient governance. Responsibly suggests that in some instances we need to think of the AI generated output as a deliverable developed by an intern. We need to validate the information, corroborate its accuracy, and approve its source. Having said that, the speed at which AI generated output is produced will still highly increase efficiency and reduce time to business value, relative to current practices, even when needing validation.
From a manufacturing and supply chain perspective there are a number of use cases already producing real value and benefits. As noted by the Association of Supply Chain Management (ASCM) “…when used responsibly, AI presents amazing possibilities, especially in supply chain. For instance…AI for improved planning, customer order management and inventory tracking; to address the labor shortage; for creating digital twins that reflect physical objects; and the rise of AI-powered procurement.”
Companies like UPS are using AI powered network planning tools to reroute packages to facilities with the most capacity. AI is used in warehousing to make demand predictions and modify orders. While this is a challenging task for many companies, and the industry is still in the inception phase of integrating this technology into operation, the advantages and benefits of AI powered manufacturing and supply chain technology are clear to be seen and many companies already are piloting AI for specific use cases For example *Food-and-beverage giant Nestlé SA, the maker of Nespresso coffee and DiGiorno frozen pizza, said it is considering how to use generative AI in its operations but is evaluating its security. It is essential to evaluate and determine the benefits and risks of using AI for every use case and to responsibly decide what makes sense in your business context.
#AIgovernance #ASCM #manufacturing #boardofdirectors #techbusiness
Yvonne E. Hyland is a people-centric, solutions-driven executive with 30 years of experience in international enterprise technology leadership. A pragmatic innovator and former intrapreneur, Yvonne improves and optimizes businesses with the power of technology.
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