Answer To: Write a research report of about 3000 words focusing on one of the following topics 1. How to reach...
Akash answered on Sep 17 2021
Running Head: AI, IoT AND BLOCKCHAIN 1
AI, IoT AND BLOCKCHAIN 15
HOW TO REACH NEXT LEVEL OF SUPPLY CHAIN BY AI, IoT AND BLOCKCHAIN
Table of Contents
Introduction 3
Supply Chain Management (SCM) 3
Levels of Supply Chain Management (SCM) 4
Artificial Intelligence 5
Internet of Things 6
Blockchain 7
Role played by AI, Blockchain and IoT in Supply Chain Management 8
Reaching the next level with the use of AI, Blockchain and IoT 9
Conclusion 12
References 14
Introduction
This discussion enables us in understanding the process of supply chain management and the efficiency that can be brought in the process with the use of technology, mainly artificial intelligence, IoT and Blockchain technology. With the increase in innovative spirit across the globe, the modern technologies are taking the supply change process to the next level of Supply Chain Management. In the supply chain process of most successful companies, use of high-level technology is clearly evident.
Adaptation to technology is the crux behind the improvement in efficiency of supply chain process of successful companies. Multinational companies work across different geographical areas, which, makes it important for them to use the technology to automate their processes. Technology plays a great role in modern times. Companies use technology to reduce the wastage of resource and speed up their operations. This enables the companies to reduce the dependence on human labour and further speed up their business processes.
Supply Chain Management (SCM)
In a nonprofessional person’s language, supply chain management can be referred to all the activities involved from procurement of raw material to delivery of goods to the final consumers. It also includes after sales service. As noted by Narayanaswami, Nooyi, Raghavan and Viswanathan (2019), SCM is a complex combination of different business processes and requires effective co-ordination among various departments of an organisation. Companies pay due attention towards improving the supply chain processes as it enables them to reduce the time in delivering of goods, improvement in quality of products, reducing wastage and increasing overall efficiency of the business operations.
According to Barclay, Preece and Taylor (2018), use of technology across various levels of the supply chain reduces the risk of human errors along with automation of processes. Automation speeds up the flow of activities, which increase the efficiency of the organisation. Artificial Intelligence, Blockchain technology and Internet of Things have completely changed the shape of supply chain in the modern times. This assignment deals with the role of AI, IoT and Blockchain technology in taking the supply chain to the next level.
Levels of Supply Chain Management (SCM)
There are three levels of supply chain management, which includes operational, tactical and strategic level. As commented by Salah, Rehman, Nizamuddin and Al-Fuqaha (2019), every level of organisation has an important role to play in the success of any business. The planning activities dealing with short-terms are covered under the operational supply chain management. It involves managing the daily activities such as sales, purchase, transportation, demand fulfilment, monitoring and other similar activities.
At this level, short-term decisions are taken, that are very important for day-to-day operations of the entity. According to Calatayud, Mangan and Christopher (2019), both manual and digital technology is used this level of SCM. In case of small-scale organisation, such decisions are taken manually and the operations are also executed manually. However, in case of organisation like Walmart and others, much of the processes are automated and technology is extensively used to automate the process, thus reducing the involvement of humans in the process.
At the tactical level of supply chain, the decision relating to 6-12 months are taken generally. At this level, there is more involvement of mangers and technology is used to generate data and such activities. At this stage of supply chain, the decision, related to demand forecasting, short-term planning, scheduling and others are taken. As mentioned by Rabah (2018), effect of market on the daily activities are also considered at this stage and the managers use their skill and tact to take decisions. This stage plays an important role in the success of the organisation as this stage is connect between the top-level management and the operations of the entity. Digital software is used for analysis of large-scale data and they derive outputs, which can help managers in taking decisions.
The strategic level of supply chain management involves the top-level management of the organisation. Activities such as new product launch, raising capital from the market and others are undertaken at this stage. The top-level management use high-level software to analyse the data and frame strategies to beat the competitors and increase the market share. This level mainly deals with the vision and mission of the company. As noted by Olsen and Tomlin (2019), most successful companies tend to frame strategies for more than 5 years.
The accuracy of the prediction helps a lot in the success of the organisation. As most of the strategies depend on long-term predictions, the accuracy of predictions matters a lot. Planning is very crucial for both short-term and long terms success. Technology plays an integral role at all the levels of the SCM. Technology is equally important at all the levels of organisation.
Artificial Intelligence
Artificial Intelligence is the simulation of human intelligence processes using technology. It can be used for activities such as planning, recognition of speech and others. Artificial Intelligence has penetrate the lives of humans and has made life a lot easier. According to Wohlgemuth, Umezawa, Mishina and Takaragi (2019), artificial Intelligence can be effectively used for various activities such as solving a critical problem and others.
Artificial Intelligence technology has the ability of reasoning, learning and self-correcting. The advancement of technology has increased the efficiency of processes. However, the human intelligence cannot be matched by artificial intelligence. Artificial intelligence is sued for automation of processes in factories and other areas. The process can be streamlined using the technology, which reduces the average cost of production along with substantial decrease in time required for execution of activities.
In the current scenario, Artificial Intelligence has replaced large number of jobs as automation leads to decrease in the risk of human errors. In addition to that, the time required to...