AI impacts on supply chain performance : a manufacturing use case study

Abstract

The integration of cross-company activities to form global supply chains (SC) has several benefits, including reducing costs, minimizing energy and resource waste, and promoting relationships for improving all network actors. However, as the number of tiers of suppliers and customers increases, monitoring processes and identifying problems becomes more challenging, which can threaten the continuity of the SC. To address this issue, the EU knowlEdge project proposes using artificial intelligence (AI) solutions that are distributed, scalable, and collaborative to enable automatic monitoring and learning in the SC. This approach replaces rigid organization with flexible networks that leverage self-learning algorithms and automatic value creation, thereby facilitating knowledge sharing. The project unifies technologies from various domains, including AI, data analytics, edge, and cloud computing, into a software architecture that offers a systemic solution rather than an incremental improvement. This architecture enhances SC performance, including adaptability and autonomy, and enables industry to adopt adaptive strategies. The platform’s functionality is tested in manufacturing, where it will improve production monitoring and planning and enable human intervention and learning. The AI application is expected to increase performance on various business and production indicators, which will also have an impact beyond the factory floor. With this approach, managers can respond quickly to changing customer requirements, while deviations in planned processes can be addressed more effectively. Additionally, the research conducted by the project will provide insights into future management and learning in SC.