How Machine Learning Improves Supply Chain Management
Everywhere you look today, companies are discussing how to digitally transform. But what does that mean for supply chain management?
After all, the supply chain has been digital for years with programmable logic controllers (PLC), radiofrequency ID, EDI, and electronic documents. Guess what? Supply chain management needs to continuously evolve as well. With the ever-changing expectations of customers, it can be impossible for a business to keep up with demands in real-time. Plus, the sheer size and speed at which data arrives presents an almost insurmountable problem for any supply chain management system.
That’s where machine learning can help. Going digital for the supply chain means being able to manage end-to-end extended processes digitally – optimizing quality, maximizing speed, reducing costs, and being able to provide highly personalized and customizable products for your customers.
Supply and demand — an age old problem to balance for any industry. Manufactures are constantly faced with an influx of big data and everchanging variables, making it difficult to efficiently and effectively maintain supply to keep up with demand. Gone are the days of forecasting demand based on static models. We can now continually learn and adapt from new patterns found by analyzing data in real-time.
Now, the supply chain needs to be agile, nimble and able to respond in real-time to today’s omnichannel demand without having to wait for lengthy and manual batch processes.
A Match Made in Heaven - MAchine Learning and Supply Chain Management One would think that the decision making process has actually become easier with all the information systems can now collect. However, with such an overload of data, it can become difficult to keep up with real-time demand effectively.
That’s why machine learning and supply chain management are a match made in heaven.
Together, they can optimize production, reduce costs, and improve quality — all while giving the customer exactly what they want and need, when they want and need it, and how they want and need it.
Finding the Key with Customization Today’s consumer wants to be unique. They expect their products to be as individual as they are and customized to them.
This requires a much more detailed and granular approach for supply chain management. One that can be customized in real-time and change at a moment’s notice without decreasing production or increasing costs
Moving Beyond the Annual Budget Gone are the days of CFOs managing the budget on an annual basis. In the past, CFOs forecasted the budget by analyzing what has worked in the previous years and predict what consumers may or may not demand in the upcoming future.
Today, consumers drive demand. And, that demand can quickly change — sometimes on a moment’s notice. The modern CFO has the ability to make real-time, on-demand financial decisions based on supply chain activity, without having to predict the future by gazing into a crystal ball. With machine learning, modern CFOs can successfully adapt to this ever-changing demand environment. By doing so, they can decrease cash to cash cycle times and increase profits.
The Future of Supply Chain is Now The agile supply chain of the future is predictive, connected, end-toend, real-time, and digital. By taking advantage of digital technologies like machine learning, balancing demand and supply is now more responsive, optimized, and on demand. No need for a crystal ball.
Machine learning has evolved supply chain, integrated business planning and budget management. It improves forecasting, efficiency, accuracy, scheduling, and decision making. Predictive capabilities help drive competitive advantage for a supply chain of ever increasing product customization needs.
Experience the power of a digital core ready to take your supply chain management to the next level with the intelligent, next-generation business suite, SAP S/4HANA.
Integrate inventory and logistics processes Lower operational and administrative costs by integrating the management of all inbound and outbound freight and warehousing processes, and improving connectivity with warehouse automation equipment and logistics service providers.
Improve production planning Coordinate manufacturing operations across your organization including material requirements, logistics, and receipts for proper material handling, work in process, and inventory. You can also make plan adjustments based on real-time information from the enterprise, suppliers, and the plant floor.
Support complex assembly processes Enable efficient planning for complex assembly including material requirements, production, and capacity planning, as well as advanced functionality for bills of material (BOM), routing, factory layout, and machine models.
Accelerate manufacturing workflows Plan and schedule maintenance tasks synchronizing labor, material, equipment and schedules. Execute planned and unplanned maintenance to ensure optimal operations including improved safety and environmental impact.
Enable efficient maintenance management Improve planned and unplanned maintenance operations, while optimizing safety and environmental impacts, by planning and scheduling maintenance tasks to synchronize labor, materials, equipment, and schedules.
Enhance quality management Run enterprise-wide, closed-loop quality management processes – from quality planning to quality operations – for continuing process improvement.
Experience Digital Transformation with Approyo The opportunity exists to transform business processes and achieve the digital transformation of your business with more automation and real-time visibility. Our SAP S/4HANA, SAP HANA and Cloud solutions address these important needs and more. Let us show you today! Set up a free consultation.
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