Global Supply Chain Group



Artificial Intelligence (AI) In Supply Chain Management

Artificial intelligence (AI) is a type of intelligence exhibited by machines, in contrast to the natural intelligence displayed by humans and other animals.

AI research deals with the question of how to create computers that are capable of intelligent behavior.

In supply chain management, AI has been shown to be promising for tasks such as demand forecasting and inventory optimization.

In particular, neural networks have been found to be effective for these tasks. However, there are still some challenges that need to be addressed before AI can be widely adopted in the field of supply chain management.

Artificial intelligence (AI) was introduced to develop and create “thinking machines” that are capable of mimicking, learning, and replacing human intelligence.

Since the late 1970s, AI has shown great promise in improving human decision-making processes and the subsequent productivity in various business endeavors due to its ability to recognise business patterns, learn business phenomena, seek information, and analyse data intelligently.

Despite its widespread acceptance as a decision-aid tool, AI has seen limited application in supply chain management (SCM).

To fully exploit the potential benefits of AI for SCM, this paper explores various sub-fields of AI that are most suitable for solving practical problems relevant to SCM.

In so doing, this paper reviews the past record of success in AI applications to SCM and identifies the most fruitful areas of SCM in which to apply AI.

The impact of artificial intelligence on logistics

Artificial intelligence (AI) is changing the logistics landscape. Already, AI is being used to manage and predict demand, optimize inventory and routing, and improve customer service.

In the near future, AI will play an even more important role in logistics. It will help companies become more agile and responsive to changes in the market, enable them to make better decisions about where to allocate resources, and optimize operations.

As a result, AI will have a profound impact on the efficiency and competitiveness of companies in the supply chain.

Artificial intelligence has been used in a number of industries for some time now, and the supply chain industry is no exception.

There are a number of benefits to using artificial intelligence in the supply chain. Perhaps the most obvious benefit is that it can help to improve decision-making.

With access to more data and the ability to analyze it more quickly and accurately, artificial intelligence can help companies make better decisions about where to allocate resources and how to respond to disruptions in the supply chain.

Artificial intelligence can also help companies optimize their supply chains.

By analyzing data about past shipments, orders, and production cycles, artificial intelligence can help companies identify inefficiencies and opportunities for improvement.

This can lead to cost savings and a more efficient supply chain.

Finally, artificial intelligence can help companies manage risk in the supply chain.

Global Supply Chain Group - vivek sood image

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.


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