Unexpected spikes in demand, a lack of workers in factories, and out-of-balance shipping operations can all lead to compromised supply chain performance. The increasing variety of goods offered to consumers also require shippers to operate with as much agility as possible in the face of countless day-to-day challenges.
Artificial intelligence (AI) and machine learning (ML) can streamline and optimize supply chain operations, provide greater visibility and flexibility, and prevent expensive asset downtime caused by inadequate maintenance programs.
Industrial AI provides wide-ranging supply chain technology solutions
AI technology offers a wide range of potential applications for optimizing supply chain operations. Perhaps the most valuable element of AI in supply chains, though, is providing visibility across the entire end-to-end process to identify incipient problems and identify ways of improving performance. Possible applications include:
- Predictive forecasting: AI can improve operations forecasting by automatically and comprehensively analyzing historical data, customer behaviors, evolving market forces and other exogenous factors.
- Better inventory management: By assessing historical sales data, seasonal trends and customer behaviors, AI can recommend ideal stock levels and proactively predict reorder requirements.
- Autonomous real-time analysis: By using smart devices and sensors that automatically collect real-time data and then applying AI-driven algorithms, data is processed autonomously, resulting in quicker decisions and more accurate responses.
- More resilient risk management: AI provides advanced risk management solutions by continuously monitoring data to identify potential threats.
- Enhanced customer experience: When supply chain organizations leverage AI-driven analytics, they gain a deeper understanding of customer preferences, behaviors, and purchasing patterns.
High-tech manufacturers use AI to reduce downtime
The manufacturers who stand at the midpoint between raw material suppliers and the retailers who are the ultimate contact point with consumers are an area of especially powerful leverage for AI-enabled solutions.
Equipment failures and unexpected downtime are common problems manufacturers face. When a critical asset breaks down, production frequently comes to a halt, requiring expensive repairs that consume valuable resources.
Because upstream suppliers often face delays and shortages of their own, lack of replacement parts can lead to extended periods of downtime. At an estimated cost of up to $260,000 per hour for large manufacturers, such downtime can affect customer relationships and ultimately financial performance of the company.
Avathon’s Industrial AI platform for manufacturing provides AI-powered predictive insights that help overcome such supply chain constraints and challenges. By autonomously analyzing vast quantities of sensor data on production assets, as well as unlocking the value from unstructured data in maintenance logs and similar documents, Industrial AI platform allows users to:
- Gain end-to-end performance visibility through predictive analysis.
- Prevent asset (and hence process) failure, reducing unneeded maintenance.
- Assess operational performance and process inefficiencies.
- Improve reliability and safety.
- Reduce waste and operational costs.
By leveraging patented AI/ML technology to automatically monitor and analyze historical sensor data, Avathon’s Industrial AI platform enables predictive/prescriptive maintenance that maximizes the life of critical equipment. Industrial AI platform detects and identifies anomalous behavior, providing advance warning of impending quality control and maintenance issues. This helps mitigate losses from recalls and machine failure, and also reduces stoppages related to preventive maintenance, increasing your profitable uptime.
The data models that Industrial AI platform generates from factory assets can also be used to create a complete, up-to-date picture of the state of operations. This intelligence helps identify ways of improving production processes and maximizing efficiency, while ensuring the high levels of quality that customers demand.
AI-enabled end-to-end visibility allows players throughout the supply chain to respond more effectively to changes in demand and logistics. This gives them an advantage and offers new opportunities that will be missed by competitors who operate without the benefit of AI technology.
Identifying ways for manufacturers to optimize supply chain operations requires significant investment and focus. Achieving operational excellence while ensuring market demand is met in a way that doesn’t create excess strain and price pressures on other players in the supply chain cycle requires AI technology like Avathon Industrial AI platform, a solution that enables you to maximize the value of operational data to increase uptime, quality, and flexibility from your supply chain management investment.
Contact us to learn how the Avathon Industrial AI platform can upgrade your logistics and supply chain performance.
