How data standards can transform supply chains into supply circles

In this article from the World Economic Forum (WEF), the authors show that supply chains are undergoing radical change as new technologies are gradually introduced into business. 

This disruption begins with improved resource allocation. For example, to address breakdowns in production machinery, manufacturing industries stockpile excess parts to repair these machines. This overstocking comes at a financial cost to the industry. Thanks to the use of artificial intelligence (deep learning, machine learning), these industries are able to optimize the distribution of spare parts and reduce the costs generated by this overstocking. 

Beyond the financial aspect, the use of AI makes it possible to avoid excessive and unnecessary waste of spare parts. For example, a small-to-medium sized manufacturer may have approximately $200,000 worth of spare parts in inventory and approximately $100,000 worth of waste. 

If AI can save companies a significant amount of time and money, that's a good thing. The implementation of AI will help to develop, and even improve, a circular economy model in the manufacturing sector.