Accelerate the digitization of supply chains

This text is part of the special Research section

Labor shortages and climate change are among the challenges facing businesses in a context that is often tinged with uncertainty. To help improve prediction and decision support methods, the University of Quebec at Rimouski (UQAR) has created the Research Chair in Artificial Intelligence for Digital, Resilient, Agile and Sustainable Supply Chains.

Before being purchased, a product goes through countless stages, from the delivery of raw materials to the supplier to the sale. The supply chain represents this entire logistics system, which sometimes finds itself slowed down or interrupted during extreme events, such as the COVID-19 pandemic. To better predict demand and better react when such an event occurs, artificial intelligence is a valuable tool, thanks to the high availability of data.

“The algorithms are very advanced and, in Quebec, there is a large concentration of deep learning researchers,” says Loubna Benabbou, professor in the Department of Management Sciences and holder of the chair. Where the shoe pinches is to move from theory to practice, by implementing artificial intelligence in supply chains. »

In partnership with the City of Lévis, the main objective of the new chair is to support Quebec manufacturing companies in the digitization of their supply chain processes, while contributing to staff training. Its work will be based on their reality, according to economic, social and environmental issues.

And that’s good, because, according to a recent study by Deloitte and E&B Data, among the 309 manufacturing companies present in the Chaudière-Appalaches region, 66% find that investment in robotization, automation and computerization is the first strategy to adopt when faced with the problem of the labor shortage. Digitization would also allow a 15-20% reduction in greenhouse gas emissions, according to Scale AI, a consortium of private entities, research centers, universities and start-up in Canada.

Agility and durability

The extended name of this new chair was necessary, according to Loubna Benabbou, who wanted performance not to be associated solely with financial gains. “We want to redefine this idea of ​​performance, which is why it is also important to talk about the agility, resilience and sustainability of supply chains,” says the professor.

Beyond digitization alone, she firmly believes in the positive effects of artificial intelligence on climate change mitigation, which is generating a lot of enthusiasm in the research community. Among the chair’s projects, one aims to deploy renewable energies more widely and reduce their costs, thanks to models for predicting the needs for solar resources, in particular.

The team will also work in collaboration with the Rimouski Institute of Marine Sciences (ISMER) of UQAR to predict the speed and estimate the acoustic footprint of ships in the St. Lawrence River. Ultimately, this could help reduce the impact of noise on aquatic fauna and the risk of collision. “It’s a wonderful initiative,” says the researcher.

Many other applications are possible from the mountains of data to which we now have access. In the forestry industry, for example, it is possible to create models for determining the moisture content of wood. This can greatly influence the decisions of this industry to provide higher quality end products.

Change management

Lower manufacturing, warehousing and distribution costs on the one hand, and increased revenue on the other: the gains are enticing for companies that digitize their supply chains. In Canada, the latter employ more than a million people and contribute nearly 10% of the GDP, according to Scale AI. If the myth of robots replacing humans is to be avoided, internal transformations are indeed to be expected.

The structures and people employed there therefore need to be supported, as is the case in Germany. “The most interesting thing about the German model is the management of change and monitoring in terms of training and the development of new skills,” emphasizes Loubna Benabbou. We are not just going to digitize for the sake of digitizing, there must be a background accompaniment. »

The Chair has already established a first partnership with the Lévis company XST, responsible for the development and management of the maritime traffic management information system, as well as with the national research organization Mitacs.

Loubna Benabbou hopes that the work of his team can bridge the gap between theoretical research and practice, and that the benefits of artificial intelligence will be accessible to small and medium-sized businesses, rather than just large firms.

This special content was produced by the Special Publications team of the Duty, pertaining to marketing. The drafting of Duty did not take part.

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