Artificial Intelligence &

Machine Learning for

Supply Chain Optimization

ShiShShridharDirector, Retail Industry Solutions

Microsoft CorpTwitter: @5h15h

Improve forecasting through enriched

Data & AI technology

Transparency of farming

transactions with supply

chain helps farmers get

credit.

Blockchain can make

economics work for

partners, such as

insurance companies, to

offer services to small

hold farmers.

Manufacturer gets

attestable end-to-end

supply chain insight that

can help them optimize

their supply chain and

reduce costs.

Manufacturer receives PR

value from engagement,

with the ability to highlight

what they are doing for

farmers, local economies,

and to drive sustainability.

Customers can get

insight into origins of

their product, down to

knowing which farm(s)

participated,

sustainable methods

used, etc.

Regulator

Manufacturer gets insight

into how much product is

in channel.

Regulator has insight

into the entire process.

Internet

of Things

Advanced

Robotics

Analytics

Big Data

Data & AI can be leveraged to become competitive in all of the 6 Main Drivers

Blue

Leather

Cross-body

Recommendation:

More blue, leather,

and cross-body

styles

High-performing attributes

Projected handbag demand

Demand forecasting

Restock now

Low leather handbag stock

Inventory

Alert

DELIVERY ROUTE OPTIMIZATION

Order 10295

Optimizing local delivery route

1 2 3 4 5 6 7

Green clutc

Floral hand

Leather cro

Cross-body

Projected handbag demand

1 2 3 4 5 6 7

Green clutc

Floral hand

Leather cro

Cross-body

Blue

Leather

Cross-body

Recommendation:

More blue, leather,

and cross-body

styles

High-performing attributes

Demand forecastingDELIVERY ROUTE OPTIMIZATION

Order 10295

Optimizing local delivery route

Restock now

Low leather handbag stock

Inventory

Alert

Optimize order deliveries and cut costs by using

customer location and predicted traffic to plan

distributed order fulfillment

Generate more accurate demand forecasting

and pricing insights based on public and customer

data automatically

Automate stock replenishment processes and

optimize inventory management

Demand Forecasting Solutions and challenges

Model and forecast

Identify the right leading

indicators

Get data in the right granularity

Lack of expertise with state-of-

the-art methods

Collect internal data

Data updates slowly, takes

time to process

No historical data for new

products, which may bias

forecasting

Internal data doesn’t tell the

whole story

Act on insightsEnrich with external data

Little visibility into consumer decision process

Little visibility into competitors’ actions

Macro-economic conditions change

Data spread across multiple sources and formats

10

This is where most

manufacturers are

today.

Structured data from

LOB apps is transacted

and locally managed.

Understanding

anomalies, plant

metrics, production

processes.

Structured data

managed and analyzed

centrally informs

business.

Turning data into

insights and actions.

Data capture is

comprehensive and

scalable and informs

business decisions at all

levels of the

organization.

They want to be here.

This is where they not

only understand internal

but feed in external data

to understand broader

business impacts. Data

transforms business to

drive outcomes. Any

data, any source,

anywhere at scale.

The Journey

Reactive

Informative

Predictive

Transformative

Cognitive

Predictive

Connected

1

2

3

Today

0

Using Data & AI to Unlock Potential In Supply Chain

Provide a 360-view from diverse data sources,

internal and external

Mine audience signals and identify leading

indicators

Build near-real time forecasts with signals from

diverse sources

Produce actionable insights

Damco/Maersk is one of the world’s leading third party

logistics providers specializing in delivering customized freight

forwarding and supply chain solutions.

Development of an IoT Analytics solution to predict disruptions

in their supply chain has given the company and its customers

the ability to change shipping routes due to disruptions along

the current route. (i.e. weather or threat conditions (typhoon,

terror attacks, labor strikes, etc) along the route)

“By providing increased visibility and new

products and services, Maersk will

increase the predictability of customers’

supply chains to drive cost leadership,

and enhanced customer experience and

business model innovation.”

Supply Chain Management Issues Addressed with AI

Inventory Management

Purchasing

Location Planning

Freight Consolidation

Routing/Scheduling Problems

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