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The Benefits of Artificial Intelligence in the Supply Chain

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According to recent research by the Artificial Intelligence Observatory of the Politecnico di Milano, Italy is also experiencing significant growth in the artificial intelligence market, both in terms of revenue and the number of companies involved. 57% of companies have already implemented AI-based initiatives, and among them, 25% have reached full operational capacity.

AI is not just a passing trend — it is the result of a technological evolution that began in the 1950s and has now reached a crucial point of transformation.

Today, artificial intelligence is taking on an increasingly central role in the supply chain, thanks to favorable technological and market conditions, including:

The accessibility of these technologies has drastically reduced costs, making AI adoption more sustainable than in the past.

Executives in the manufacturing and logistics sectors view artificial intelligence as a key resource not only to automate low-value operational tasks but also to support more complex and decision-making activities traditionally entrusted to humans.

Despite growing media attention and enthusiasm, there is still much confusion about what AI actually is, how it differs from other technological tools, and what its real potential is.


What Artificial Intelligence Is and How It Works

The OECD defines an AI system as a mechanism capable of processing inputs and, thanks to autonomous adaptive capabilities, generating outputs such as predictions, recommendations, or decisions. These systems influence physical or digital environments according to predefined goals, which can be programmed or learned through algorithms.

AI systems can be either software or hardware and are capable of:

Just as humans acquire and interpret information through the senses, AI uses specific functionalities — or capabilities — to simulate these processes. The main “abilities” of artificial intelligence include:


How Artificial Intelligence Is Transforming the Supply Chain

In the manufacturing sector, AI is taking on a strategic role. Teams of AI and Data Science experts are working on AI-based projects to enhance ASP and MES/MOM solutions — the true engines of the Digital Supply Chain — to manage, optimize, and digitize production operations.

In MES (Manufacturing Execution System) software, AI is used to monitor and analyze production in real time, detect process anomalies, predict equipment failures or downtimes through predictive maintenance models, and analyze accurate data for proactive and intelligent factory management.

Through advanced analysis of data collected from machinery, it is possible to improve product quality, reduce waste, and increase operational efficiency. Moreover, special attention is given to factory operators through constant technical support provided by an AI Agent, which works alongside them by offering additional information, video tutorials, troubleshooting answers, and operational instructions — everything needed to make their job easier.

Thus, chatbots, robots, AI Agents, and Predictive Analytics are the daily bread in AI research supporting the production process.

In APS (Advanced Planning & Scheduling) software, AI enables even more precise and responsive planning and scheduling, taking into account numerous variables such as material availability, production capacity, delivery times, and order priorities.

AI algorithms analyze complex scenarios and propose optimized plans to minimize bottlenecks and dynamically adapt to demand changes or production issues.

All of this enhances and strengthens the role of the planner, allowing for faster and smarter planning.

In this way, advanced AI-based software not only supports decision-makers but also becomes a true intelligent ally, capable of transforming vast amounts of raw data into strategic and predictive actions.


How AI Is Used in Industrial Production

There are numerous AI-based projects aimed at improving the efficiency of warehouses, yards, and management software such as WMS, YMS, and TMS.

In transportation, there are also several projects simulating trip planning for self-driving trucks, which are expected to be introduced in the near future.

Finally, both in manufacturing and logistics, work is being done on labor management or workforce management solutions to better manage human resources engaged in operational activities in factories or warehouses.


How to Use AI for Managing Manufacturing and Logistics Personnel

Supply chain software can integrate advanced AI-based features for:

Artificial intelligence is not just a conference “buzzword” — AI is already operational and embedded in the logic of transport, warehousing, and production.

Companies that are experimenting with and investing in AI today are already reaping tangible benefits in terms of efficiency, accuracy, and sustainability. Of course, it’s not magic: it requires know-how, quality data, and a clear vision.

AI is not the future — it is the present.

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