Automation and the integration of artificial intelligence (AI) are reshaping modern business operations. This evolution has historical roots, with a growing emphasis on efficiency and cost reduction. AI's transformative role in supply chain optimization is evident through key technologies and applications, which empower businesses to make data-driven decisions, enhance customer experiences, and reduce costs. Real-world examples illustrate how companies leverage AI to streamline operations and deliver products and services with precision.
TopI. Introduction
Supply Chain Management (SCM) has traditionally been a complex and multifaceted field responsible for coordinating the flow of materials, information, and finances across a network of suppliers, manufacturers, distributors, and consumers. With the advent of Artificial Intelligence (AI), this field has been revolutionized in recent years. The integration of AI (Pandey, B. K. et al.,2021) in SCM is transforming how businesses manage their supply chains by offering unprecedented efficiency, transparency, and data-driven decision-making. One of the most notable advantages of AI integration in SCM is the streamlining and optimization (Pandey, D. et al.,2021) of supply chain operations. AI-driven automation can take over routine tasks, such as demand forecasting, inventory management, and order processing, with a level of precision and speed that is virtually unattainable through manual efforts. This leads to operational cost reduction and a significant reduction in errors, ultimately improving customer satisfaction (Saxena, A. et al.,2021). For instance, demand forecasting is a critical function in SCM, and AI's predictive analytics capabilities can substantially enhance its accuracy. By analyzing historical data, market trends, and external factors such as weather or economic conditions (Ahmad, A. Y. B., 2019), AI models can generate forecasts that help businesses maintain appropriate inventory levels and adapt proactively to changes in customer demands. This reduces stockouts, minimizes overstocking, and ensures timely product deliveries (Kersten et al. 2017). AI technologies (Pandey, B. K., & Pandey, D., 2023) provide real-time visibility into the supply chain, allowing businesses to monitor the movement of goods from suppliers to end consumers. The combination of the Internet of Things (IoT) (Kumar Pandey, B. et al.,2021) devices with AI allows data (Pandey, B. K. et al.,2023) from sensors on shipments and within warehouses to be collected and analyzed. This data helps identify bottlenecks, monitor inventory levels, and ensure the timely delivery of products. Real-time supply chain transparency is particularly critical in industries dealing with perishable goods, such as food and pharmaceuticals, as well as high-value items requiring heightened security measures. AI-enhanced visibility and tracking offer an extra layer of control and accountability throughout the supply chain, reducing the risk of spoilage, theft, and delays.