Modern supply chains depict complex systems of organizations, people, activities, information, and resources. These systems involve the process of transferring products or services from suppliers to customers. Supply chain management (SCM) solutions usually embodied in software architectures and schemes that promote the flow of information between different functions within and between enterprise organizations.
The global artificial intelligence in the supply chain market has the potential to grow with USD 21.2 billion and with bolstering CAGR in the forecast period from 2020-2027. AI can improve operational processes and promote cost-effective supply chain solutions. It provides an analysis of leading companies and solutions that utilize AI in the supply chain and AI managed on behalf of others and evaluates the main advantages and disadvantages of these solutions.
Leading SCM solutions to facilitate the sharing of information between organizational units and geographic locations, enabling decision-makers to view the required information across the enterprise in a timely, reliable, and consistent manner. Various forms of artificial intelligence (AI) are integrated into SCM solutions to improve everything, from process automation to overall decision-making. It includes greater data visibility (static and real-time data) and related management information system effectiveness.
Moreover, artificial intelligence improves the satisfaction of members of the supply chain, thus forming a positive feedback loop and thus improving the overall SCM performance. One of the main goals is to use AI to improve the supply chain from production to consumption in product-related industries and create opportunities to support product services in cloud-based service models. Artificial intelligence will find possibilities for members of the supply chain to control service outcomes better and control the overall product/service experience and profitability.
Furthermore, As the Internet of Things (IoT), technologies and solutions play an increasingly important role in SCM, including AI algorithms and software-driven processes in the IoT has become a valuable opportunity to leverage artificial intelligence (AIoT) in the supply chain. More specifically, AIoT solutions use IoT connectivity and communication capabilities, as well as AI’s machine learning and decision-making capabilities, as a means of optimizing SCM through data-driven hosting services.
Business activities that require the collection and analysis of large amounts of structured and unstructured data can benefit from artificial intelligence. Its ability to support faster and more intelligent decision-making and, thus, forms natural matching of supply chain and artificial intelligence. The need to increase the visibility and transparency of supply chain data and processes use artificial intelligence to improve consumer services and their satisfaction.
The awareness and ability to implement fact-based decision making that makes artificial intelligence possible is entirely new. Thus, the advancement of technology expected to create the future supply chain of perception -to be able to sense, perceive, and react to the situation at an abnormal particle level. Therefore, it helps in making a better decision for the business that improves productivity and reduces time and cost.
Based on the application, the global Artificial Intelligence in the Supply Chain market segmented into Robotics & Factory Automation, Planning & Market Demand Forecast, Commerce & Financial Data, Cyber Security, Customer service, Other. The Planning and market demand segment accounted for the largest share of the market expected to grow at a bolstering rate during the forecast period from 2020-2027. It is mainly owing to the one essential application in the supply chain is market demand and planning. Artificial intelligence helps in analyzing how much demand for the product will be shipped to a customer and enhance the functions and operations of the business.
Based on the type, the global Artificial Intelligence in the Supply Chain market classified into Software, Hardware, Other Services. The software field occupies the largest share of the entire AI market in the AI as a whole field. It attributed to the growing demand for AI-based platforms and solutions as it provides supply chain visibility through software, including inventory control, warehouse management, order procurement, and reverse logistics and tracking.
Based on the function, the global Artificial Intelligence in the Supply Chain market categorized into On-premise, Off-premise. The on-premise segment captures the largest share in the global artificial intelligence in the supply chain market. On-premise functions help in eliminating the contractual agreement, thus reduces cost, coupled with the emerging need for controlling the hardware led to increasing the scalability. Moreover, the data stored in the enterprise premise give full control and provide safety to data as well.
Based on the End-user, the global Artificial Intelligence in the Supply Chain market segmented into Automotive, Aerospace, Building Construction, Chemical, Others. The others (retail) segment accounts for the largest share in the forecast period from 2020-2027 in the global artificial intelligence in the supply chain market. The artificial intelligence in the supply chain helps in growing the retail segment by enhancing the customer experience and real-time customer intelligence, forecast accurate demand. Also, it propels sales and promotion campaigns.
Based on geography, the global Artificial Intelligence in Supply Chain market segmented into North America, Asia Pacific, Europe, South America, and Middle East & Africa. The Asia Pacific expected to hold the largest share of global Artificial Intelligence in Supply Chain market. The high growth rate attributed to the region’s rapidly developing economy is owing to the proliferation of the Internet of Things (IoT) is growing, emerging disposable income and other industries in automobile, manufacturing, and retail, etc. To accept more and more modern technology and expand the implementation of computer vision technology in many applications. Also, the adoption rate of AI-based solutions and services in supply chain operations continues to increase. The increasing digitization of the region and the improvement of connected infrastructure have also played a role in the growth of the AI in the region’s supply chain market.
Companies such as IBM, Siemens, NVIDIA, Spotify, Microsoft, Google, Intel, Salesforce, Shell, GE Ventures, Samsung, Bloomberg Beta, RapidMiner, Tesla, and others are key players in the global Artificial Intelligence in Supply Chain market.
The approximate size of the Global Artificial Intelligence in the Supply Chain Market will reach USD 21.2 billion by 2027.
AI amplifies important decisions using analytical predictions and recommendations on optimal actions by leading the supply chain optimization software.
Growing Big Data, Demand for visibility, and transparency in the supply chain are the key factors to drive the Global Artificial Intelligence in Supply Chain Market.
Increasing operating costs, lack of workforce, lack of infrastructure are the growth restraints in the Global Artificial Intelligence in Supply Chain Market.
Globally, Artificial Intelligence in Supply Chain Market is estimated to grow at a CAGR of 8.5% during the forecasted period.
The on-premise segment holds the maximum share in the Global Artificial Intelligence in Supply Chain Market.