With advancements in technology and the rise of machine learning, the way inventory management is conducted is changing and won’t ever look the same. Machine learning algorithms and technologies like predictive analytics and real-time tracking are improving accuracy in inventory management and leading to cost savings so it’s crucial for young supply chain managers, to understand and stay current with these advancements as they present opportunities for career growth and impact.
Machine learning and AI are revolutionizing the way inventory and supply chains are managed. So for any stakeholder in the industry, now is the time to get involved in this exciting and rapidly growing field.
Let’s Start From the Very Beginning
A little background to set the premise. Inventory management is a crucial component of supply chain management as it involves tracking and managing the flow of goods and materials in and out of a company’s storage facilities. In the past, this was done through manual methods like spreadsheets and paper records, but with the rise of technology and big data, that’s all changing. Machine learning entered the game as a subset of artificial intelligence and particularly uses algorithms and statistical models to enable computers to learn and make predictions.
In the context of inventory management, machine learning is revolutionizing the way companies track and manage their inventory.
The Technologies Changing the Inventory Management Game
Machine learning is important in inventory management because it helps improve the accuracy and efficiency of the process. The algorithms can analyze data, identify patterns and trends, and make predictions about future demand. This information can be used to optimize inventory levels, reducing the risk of stockouts and overstocking. Basically, the sky is the limit, so let’s break it down.
Predictive analytics
This technology uses machine learning algorithms to analyze data and make predictions about future demand. This helps companies better understand how much inventory they need when they need it, and where it needs to be stored. By doing so, they can minimize the amount of waste and overstocking, saving them time and money.
Real-time tracking.
The cutting-edge technology of real-time tracking uses sensors and other technologies to monitor the location and status of inventory in real time. This helps companies get a more accurate picture of what’s happening in their supply chain and make better decisions about inventory management.
Automated Inventory Optimization
This technology uses machine learning algorithms to analyze data and automatically adjust inventory levels to meet demand, ultimately reducing the risk of stockouts and overstocking, saving time and resources, and improving overall supply chain performance. By leveraging this technology, companies can improve customer satisfaction, reduce costs, and increase their competitiveness in the market.
So, what does this mean for young managers? As the field of supply chain management continues to evolve, the demand for professionals with expertise in machine learning and other cutting-edge technologies will only continue to grow. This presents a huge opportunity for young engineers to leverage this technology and make a real impact in their careers.
Discover the MSc Supply Chain Management
The MSc Supply Chain Management aims to develop advanced technical skills and places value on the Corporate Social Responsibility (CSR) principals and latest engineering industrial trends taught at ESILV.
At EMLV, this program focuses on the latest technological developments and in particular the rise of digital tools to manage supply chain transformation. Taking into account societal changes and consumer expectations, this MSc aims to train graduates to propose and develop appropriate business models (short circuits, delivery, relay points, etc). As a future supply chain manager, you will be an agent of change mastering project management, and focusing on collaborators (Kanban) or customers (Lean 6 Sigma).
Stay current with the latest technologies and trends, and learn to improve skills, increase your value in the field, and position yourself for success in this exciting and rapidly growing field.