Title: Leveraging Artificial Intelligence in Supply Chain Management: Strategies for Unprecedented Efficiency and Cost Reduction
Authors: Ekene Cynthia Onukwulu, Naomi Chukwurah Mercy Odochi Agho Seun Akinfolarin,
Volume: 9
Issue: 3
Pages: 96-104
Publication Date: 2025/03/28
Abstract:
Artificial Intelligence (AI) is increasingly transforming Supply Chain Management (SCM) by enhancing efficiency, reducing costs, and improving decision-making processes. This paper explores integrating AI technologies such as machine learning, predictive analytics, and robotics into SCM practices. It discusses key areas where AI is applied, including demand forecasting, inventory management, logistics optimization, and procurement. The benefits of AI in SCM include heightened accuracy in demand predictions, optimized inventory levels, streamlined logistics operations, and improved procurement efficiency. However, the adoption of AI in SCM faces challenges such as data quality issues, integration complexities with existing systems, and high implementation costs. Strategies for overcoming these challenges include investing in data management practices, fostering a culture of innovation, and starting with pilot AI projects to demonstrate feasibility and benefits. Future directions for AI in SCM involve advancements in predictive analytics, AI-driven autonomous systems, enhanced supply chain visibility through IoT integration, and synergies with blockchain technology for enhanced transparency and security. Organizations can achieve more agile, responsive, and efficient supply chains by addressing these challenges and embracing future trends. This paper concludes with insights into the transformative potential of AI in SCM. It emphasizes the strategic imperatives for organizations that leverage AI for competitive advantage in the evolving global marketplace.