This talk covers 5 use-cases in supply chain optimization where AI can have a revolutionary effect on maximizing margins. These include optimizing pricing, production efficiency, demand forecasting, and risk mitigation decisioning.

1. www.globalbigdataconference.com
Twitter : @bigdataconf

2. G L O B A L B I G D ATA C O N F E R E N C E
5 Ways
AI is revolutionizing supply chains
Moataz Rashad, Founder & CEO
mr@deepvu.co @moatazr
http://deepvu.co @deepvuHQ
#aiSupply #aiSCM

3. Supply Chain end-to-end with an AI Layer
G L O B A L B I G D ATA C O N F E R E N C E
Requirements
Planning
Sourcing/
Procurement
Manufacturing
Quality
Assurance
Logistics &
Delivery
Artificial Intelligence
AI is revolutionizing an area with little
innovation in over 10 years

4. Financial Mgmt
Supply Chain
Manufacturing HR
CRM
Purchasing
eCommerce/UX
Asset Mgmt Other
BI
๏Supply chain constitute
60-70% of Operating
Expenses for
manufactures
60–70%
Supply Chain dominates OpEx $$
G L O B A L B I G D ATA C O N F E R E N C E

5. ✓Decision intelligence problems
✓ex: add a new contract manufacturer to de-risk delivery date?
✓NLP language understanding problems
✓Text understanding
✓Conversational interfaces
✓Computer Vision problems
✓Object recognition in images/video
✓Visual Quality Assurance
Classes of problems ideal for AI
G L O B A L B I G D ATA C O N F E R E N C E

6. more datasets from
more products
*higher margin lift
*improved ROI
Why it’s Strategic? the virtuous cycle for AI in supply chain
smarter neural networks=>
higher performance +
faster training
increased investment on
AI HW+SW
5 Ways AI is revolutionizing supply chains
G L O B A L B I G D ATA C O N F E R E N C E

7. • Demand forecasting accuracy impacts production & inventory planning
Excess InventoryLast minute higher cost logistics
• Traditional techniques unreliable & costly
• Can’t predict farther out with high accuracy => Negative margin impact
Waste
#1 Planning: Accurate Predictions
5 Ways AI is revolutionizing supply chains
G L O B A L B I G D ATA C O N F E R E N C E

8. #1 Planning: Accurate Predictions
5 Ways AI is revolutionizing supply chains
• Demand forecasting & inventory planning with high accuracy
• Predict farther out with higher accuracy
• Continuously learning/self-tuning
accurate real-time
demand forecasting
Ref#
Custom
er
SKU Qty Geo
PO
amt
PO
date
Delive
ry
date
…
12345 C1 S1 1000 L1 $5M 8/27 9/3 …
12346 C1 S2 2000 L2 $9M 8/29 9/4 …
12347 C2 S1 1200 L7 $7M 9/21 9/25 …
Training on Historical Demand
G L O B A L B I G D ATA C O N F E R E N C E

9. #2 Materials Sourcing: Optimal Pricing
5 Ways AI is revolutionizing supply chains
• BoM Optimization using predictive pricing
• Mostly done manually using spreadsheets
• Intelligently provide optimal BoM to save X%
• Ability to constantly learn and improve vs using intuition
real-time supplier price
predictionDate Supplier Part Price Discount
10/1 S1 123 12000 2000 …
10/1 S1 456 54000 4000 …
10/2 S3 123 11400 300 …
Training on Historical Pricing & Signals
G L O B A L B I G D ATA C O N F E R E N C E

10. #3 Manufacturing Decisions: Predictive Maintenance
5 Ways AI is revolutionizing supply chains
• Prevent equipment failures via predictive maintenance
• Train on historical performance and IoT sensor feeds
• Goals: Increase uptime; reduce production loss; minimize energy costs
G L O B A L B I G D ATA C O N F E R E N C E
Src: Bosch
• Decisions:
• Schedule maintenance at specific time T
• Turn off machines M1, M17,..

11. Manila RT production data
Shenzhen production data
Supply chain data
Sales plan & demand
forecasting
delivers actionable decisions to optimize production plan
An AI assistant that empowers COO to make
real-time risk management decisions
5 Ways AI is revolutionizing supply chains
#3 Manufacturing Decisions: Production Plans
+ New facility?

12. 5 Ways AI is revolutionizing supply chains
• Production Planning decisions
• currently mostly done manually using rule-based software
Training on Historical Production Plans &
Revenue/Margin impact
G L O B A L B I G D ATA C O N F E R E N C E
#3 Manufacturing Decisions: Production Plan
Ref# Cust SKU Qty geo Fac1 Fac2 Fac 3
Deliv
ery
Date
Rev
enu
e
Marg
in
12345 C1 S1 7M L1 3M 2M 2M
2016/
07/01
…
12346 C1 S2 10M L2 5M 3M 2M … …
12347 C2 S1 12M L7 3M 4M 5M … …
Output:
{{decision: F1:3.5M,F2:2.5M, F3:1M,
impact: $X, delivery: mm:dd,
confidence: 73%},
{decision: F1:4M, F2:3M, F3:0,
impact: $Y, delivery: mm:dd,
confidence: 68%}}

13. #4 Quality Assurance: Computer Vision
5 Ways AI is revolutionizing supply chains
Visual Intelligence Engine analyzes raw images
of parts and productsDAMAGED
G L O B A L B I G D ATA C O N F E R E N C E
http://hcut.to/p/xwpHmP6
Potato chip
QA video

14. 5 Ways AI is revolutionizing supply chains

15. #5 Delivery & Logistics: Self-driving Vehicles
5 Ways AI is revolutionizing supply chains
• Autonomous forklifts in the warehouse
• Self-driving delivery trucks on public roads
• overcoming regulatory and security challenges
G L O B A L B I G D ATA C O N F E R E N C E

16. ✓Collect as many relevant signals across various systems
✓higher dimensionality is always better fit for DL
✓Cleanse the data
✓There’s no getting around pre-processing
✓Augment with external signals
✓Weather data
✓Import/export signals ?
How to prepare for using AI solutions
G L O B A L B I G D ATA C O N F E R E N C E

17. Summary: 5 Ways AI is revolutionizing supply chains
#1 Demand Forecasting & Inventory Planning:Accurate Predictions
#2 Materials Sourcing:Optimal Pricing
#3 Manufacturing Decisions:Production Plans & Predictive maintenance
#4 Quality Assurance:Computer Vision Detection
#5 Delivery & Logistics:Self-driving Vehicles
G L O B A L B I G D ATA C O N F E R E N C E

18. Summary: 5 Ways AI is revolutionizing supply chains
• Accurate predictions have a high impact on the bottom line
• Accurate demand planning reduces waste and environmentaI impact
• AI decisioning increases efficiency on the production floor & optimizes
energy consumption
Every supply chain needs to adopt AI =>
Improve competitiveness
Maximize margins
Boost your environmental impact score
#aiSupply #aiSCM
G L O B A L B I G D ATA C O N F E R E N C E