How Artificial Intelligence is Changing the Supply Chain Logistics / Supply Chain Management 14 November 2016

“Now your Enterprise is all about your Algorithms & Models”. Gartner said, Big Data was a good warmup excersize, now you have a lot of information from several systems, but are you able to manage the data, is this data what you were looking for, is the data organized, is the data documented, all these data is functional for my process, is the data relevant for my process, there are a lot of questions to be done. Do you have a MODEL that could help you to manage, review and analyse data in order to take the better decisions as fast as the data is being generated? “Now your Enterprise is all about your Algorithms & Models”.

70% of companies can not properly implement a model. The Challenges The Gartner Group 2015 To define the right data structure you need to know the models you want to use. 70% of companies can not properly implement a model. Create & implement a model requires domain knowledge & a deep Math understanding. Many companies have no such kind of abilities, it is not get data, you have to analize, organize and structure your data in order that it really mean something for your business.

Some practices that are recently recognized as a TREND… Ad-hoc Models are required for every industry. Prescriptive Analytics will be built in to business analytics software. (International Data Corporation). Real-time Streaming insights into data will be the hallmarks of data winners. (Forrester). Machine Learning is a top strategic trend for 2016. (Gartner). Algorithm’s markets will emerge. (Forrester). Cognitive Technology will be the new buzzword. The integration of all these practices leads you to…

Agent-based systems An Agent is integrated of a library of algorithms that can be shared among users to generate information analysis tasks. The Agent (Virtual Robot), performs the analytical tasks assigned by the user, applying the appropriate algorithms to analyze the information. The user focus only on relevant events (alerts, alarms or notifications) detected automatically by information processing algorithms. Each user will have the ability to configure/assign new tasks to their Agent.

Leads you to competitiveness “Too many information, but few algorithmic intelligence.” The best organizations in the world are increasingly using these techniques to challenge competitors by the redesign of their strategies. The Gartner Group 2015

Each Supply Chain node generates: Production Availability / Inventory Task Each Supply Chain node generates: Production Availability / Inventory Shipping Requirements Transport Requirements Delivery Dates Service Windows Quality Requirements etc… Corporate Systems Internet Mobile devices GPS Etc… DATA WAREHOUSE Supplier Manufacturer Distributor Retailer Consumer Raw Materials

A T T A A1 A2 A3 A4 DATA WAREHOUSE Supplier Manufacturer Distributor Task Algorithm Agent A1 A2 A3 A4 AN DATA WAREHOUSE Supplier Manufacturer Distributor Retailer Consumer Raw Materials

Applications in Supply Chain The 1st problem in analytics is to ask the right question…. Service How to identify service problems? It is possible to improve service level? Operations efficiency What are the most risky logistic activities? Are we improving logistic performance as expected? Costs What logistics cost shows an increase tendency? Is there any opportunity to reduce cost?

Aleph5 With more than 30 years applying models and algorithms in many industries, focused on generating business value. This scheme encourage the organization to rethink business processes by managing the risk and capitalizing the opportunities.

We have done Models & Algorithms for… Supply Chain Management Logistics (Advanced Planning Systems Models) Market Awareness (Forecasting & Market Evolution) Manufacturing (Production Scheduling) Wholesale Electricity Market … and we can BUILD MODELS for many Industries & Processes.

When good, is not enough…