Harnessing AI for Enhanced Decision-Making
At a recent data science conference in the Netherlands, ASML’s Head of Planning & Delivery Strategy, Maarten Hendriks, revealed insights from a pilot project that could revolutionize supply chain management. The project, which involved training an AI machine using Deep Reinforcement Learning, showed that AI could make smarter supply chain decisions than conventional planning approaches.
Overcoming Disruptions with Data and AI
The conference, hosted by JADS, focused on achieving a ‘triple R’ supply chain—Responsiveness, Robustness, and Resilience—through data and AI. Academic Director Jos van Hillegersberg highlighted various data tools, including digital twins and AI, that could help companies reach this goal. ASML’s keynote, Hendriks, echoed this sentiment, emphasizing the need for resilience amidst market disruptions and fluctuating demand.
AI’s Edge in Planning
ASML’s pilot demonstrated that an AI agent could significantly improve delivery performance while maintaining lower buffer stock levels. The AI’s ability to preemptively adjust production orders to avoid bottlenecks was particularly notable. However, Hendriks pointed out that integrating AI into the planning process and gaining planners’ trust remains a challenge. The AI’s decision-making process must be transparent to ensure planners can rely on and, if necessary, override its suggestions.
The Road to Integration and Scalability
While the pilot’s results are promising, Hendriks acknowledged the complexities of applying AI in real-world scenarios and integrating it into existing IT infrastructure. Despite these hurdles, he is confident that AI will eventually be fully leveraged to benefit ASML’s supply chain. The goal is to achieve scalable growth, where the number of planners does not have to increase proportionally with company turnover, thanks to the efficiency gains provided by AI.
ASML’s exploration into AI for supply chain management is a testament to the industry’s ongoing efforts to innovate and adapt. With AI’s potential to improve resilience and scalability, the future of supply chain planning looks increasingly intelligent and data-driven.