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Application of Artificial Intelligence in Automation of Supply Chain Management

Author(s):  Rupa Dash, Mark McMurtrey, Carl Rebman, Upendra K. Kar

Citation: Rupa Dash, Mark McMurtrey, Carl Rebman, Upendra K. Kar, (2019) "Application of Artificial Intelligence in Automation of Supply Chain Management," Journal of Strategic Innovation and Sustainability, Vol. 14, Iss. 3, pp. 43-53

Article Type: Research paper

Publisher: North American Business Press


A well-functioning supply chain is the key to success for every business entity. Having an accurate projection on inventory offers substantial competitive advantage. There are many internal factors like product introductions, distribution network expansion; and external factors such as weather, extreme seasonality, and changes in customer perception or media coverage that affects the performance of the supply chain. In recent years Artificial Intelligence (AI) has been proved to become an extension of our brain, expanding our cognitive abilities to levels that we never thought would be possible. Though many believe AI will replace humans, it is not true, rather it will help us to unleash our true strategic and creative potential. AI consists a set of computational technologies developed to sense, learn, reason, and act appropriately. With the technological advancement in mobile computing, capacity to store huge data on the internet, cloud-based machine learning and information processing algorithms etc. AI has been integrated into many sectors of business and been proved to reduce costs, increase revenue, and enhance asset utilization. AI is helping businesses to get almost 100% accurate projection and forecast the customer demand, optimizing their R&D and increase manufacturing with lower cost and higher quality, helping them in promotion (identifying target customers, demography, defining the price, and designing the right message etc.) and providing their customers a better experience. These four areas of value creation are extremely important for gaining competitive advantage. Supply-chain leaders use AIpowered technologies to a) make efficient designs to eliminate waste b) real-time monitoring and errorfree production and c) facilitates lower process cycle times. These processes are crucial in bringing Innovation faster to the market.