AI in Supply Chains: What works, what doesn’t and what’s next

Abstract

Given the new constraints and challenges coming up from the global markets, it is required for Supply Chain Management (SCM) to seek the help of technology and be innovative. Towards this, the advent of Artificial Intelligence (AI) can be of immense help. We are seeing newer areas of intersection between SCM and AI. This bonding has started showing results and as we are writing, the bonding is getting into different dimensions. The areas where we are seeing sufficient action are: inventory management, cost management, logistics optimization, vendor & supplier management (and evaluation), prediction modelling and many more from the internal viewpoint of a company. On the external viewpoint, we are seeing focus of SCM companies on customer service and demand forecasting. The aim of the paper is to is investigate the possible dimensions of usage of AI in SCM, the challenges, the expected outcomes and the future areas of expected activities.

The authors explore the tangible benefits of AI adoption across various touchpoints across the value-chain of SCM. The evolutionary concepts like autonomous supply chains, the increasing role of ethical AI and the integration of AI with other emerging technologies like Block Chain Technology (BCT) and Internet of Things (IoT). By extensively perusing relevant & quality research and going through real-world case studies, this study offers key insights into the potential which the interplay of SCM and AI throws up. Conclusively, this article adds to the existing literature and will guide practitioners, scholars and policymakers of SCM.