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Project Title
AI-Driven Strategies for Optimizing Supply
Chain Performance
Submitted by: Saleem Ahmad Khan
(MC210400242)
Virtual University of Pakistan
Date of Re-Submission: 16/05/2024
Abstract:
Globalized Business is based on the efficient supply chain management systems. Today day by
day we face more and more challenges and complexities driven by the unpredictable demand.
Globally dispersed operations and unpredictable interruptions. Traditional operation processes in
the supply chain management by the manual processes, limited prominence and active and
efficient decision making. This proposed study explorer the new Era Artificial Intelligence as
transformative tools make improve the make the processes effect and effective. In some cases, it
makes the operations with automations that make good performance in the supply chain
management. Automation and Natural language processing and IoTs, robotics, can help and
improve the processes of supply chain management. The will leveraged the operations tasks like
Demand and supply forecasting specifically for the company, Inventory management with
optimization using AI tools, risk management, transportation optimization in a effective way.
Implementation of artificial intelligence. Artificial Intelligence help to reduce cost and reduce
processes time in Supply chain management with the AI Bot for Customer services can help the
organization it improved customer services and improve the customer satisfactions and its also
the strategic edge of the organizational processes. However, Challenges like robust database or
the data infrastructure, ethical consideration and also required the skilled employees. The
proposed research having objectives to find out the comprehensive framework for Optimizations
in the processes of Supply chain management with the help of AI. The framework will help the
End-to-end processes of Supply chain management to get benefits and from this AI tools and
techniques and improve the performance competitive advantage.
Introduction:
Smart supply chain management are the back bone of the organizational body. The modern SCM
are facing and growing these challenges.
Unpredictable Demand:
The demand in supply and inventory and trend can shift from low to high very rapidly that make
difficulty to predict the unpredictable demands.
Globalized operation:
Managing the diverse environment globally with their standard and the network of supply chain
in the geographically challenges born the complexity.
Interruption weakness:
Natural Disaster, country political issues, unseen weather conditions and unseen events having
the strong impact on the supply chain management.
Traditionally processes people rely on it but it’s so much difficult job due to its manual processes
and the processes precision is low. The slow process makes the big decision very ineffective and
slow productivity.
Problem statement:
The current state of SCM necessitates innovative solutions. To thrive in this dynamic and
disruptive Environment Organizations need to optimize supply chain effectiveness and
performance. This research addresses this Challenge by proposing a framework that leverage AI
to transforms SCM Practices.
Contributions:
This Research offers significant contributions to the fields of SCM by proposing a
comprehensive frame work for integrating AI Into Various aspects of supply chain managements.
This framework will go beyond existing literature by providing a practical roadmap of
implementation.
Objectives:
This Research seek to achieve the following objectives:
Identify key AI Technologies applicable to vacuous SCM Functions.
Develop a comprehensive framework for implementing AI Solutions in SCM.
Analyze the potential benefits of AI Adoption in Terms of cost reduction,
efficiency improvement, and agility enhancement.
Evaluable the limitations and challenges associated with AI integration in SCM.
Literature Review:
A Thorough review of existing Research will be conducted to understand current trends and
knowledge gapes regarding AI in SCM. This Review will examine academic journals, Industry
reports, and Case studies, focusing on Application of AI technologies in different areas of SCM,
Such as demand forecasting, Inventory managements, and Transportation optimization. Existing
Frameworks for integrating AI into SCM Processes, Identifying their Strengths and
limitations(krishna Vaddy, 2023). The impact of AI on key SCM performance metrics, including
Cost, efficiency, and agility. Challenges and opportunities association with Ai adoption in SCM,
such as data requirements, ethical considerations, and talents needs. The supply chain also
effective by AI in the proposed they study to find the approaches that can effect on the adoption
of AI the Supply chain management system(Belhadi et al., 2021). They offer the framework
about the Supply chain management framework tool name is OITP (Organizational information
processing theory). The processes of automation make optimized processes and in the context of
Ai-Powered and AI transformed implementation in the domain of supply chain management.
This proposed study offer the framework that help howe to integrate the AI-powered tools in the
domain of Supply chain management(Aldoseri et al., 2023).
Proposed methodologies:
The Core of this research is a novels framework for leveraging AI in SCM. This framework will
encompass the following key stages:
Data Acquisition and preprocessing:
This stage outlines methods for collecting relevant data from various sources within the supply
chain and preparing it for AI Algorithms. Data Cleaning, normalization, and transformation will
be addressed.
Processes of AI model Selection:
Different AI techniques, such as machine leering and deep learning will be evaluated for their
suitability for specific SCM tasks. This stage will guide the selection of the most appropriate AI
model for each Application.
Model Utilization is SCM:
Techniques for training AI Models on the prepared data will be detailed. Additionally, these
stages will address the integration of trained models into existing SCM Systems, Ensuring
seamless operation.
Model Performance Evaluation:
This stage will outline metrics and methods for assessing the effectiveness and efficiency of Al-
Driven solutions. Key Performance indicators (KPIs) aligned with SCM objectives will be
identified and used to measure the success of the implement AI models.
Expected Outcomes:
Implementing the proposed framework is expected to yield Significant benefits for organizations:
Improved demand forecasting accuracy, leading to better inventory management
and reduced carrying costs.
Optimized Inventory levels, minimizing stockouts and overstocking scenarios.
Enhanced risk management Capabilities, Enabling proactive identification and
mitigation of disruptions.
Streamlined logistics and transportations operations, increasing efficiency and
reducing costs.
Increased customer satisfaction through improved delivery times and product
availability.
References:
Aldoseri, A., Al-Khalifa, K., & Hamouda, A. (2023). A roadmap for integrating automation with
process optimization for AI-powered digital transformation.
https://www.preprints.org/manuscript/202310.1055
Belhadi, A., Mani, V., Kamble, S. S., Khan, S. A. R., & Verma, S. (2021). Artificial intelligence-
driven innovation for enhancing supply chain resilience and performance under the effect
of supply chain dynamism: An empirical investigation. Annals of Operations Research.
https://doi.org/10.1007/s10479-021-03956-x
krishna Vaddy, R. (2023). Artificial intelligence (AI) and machine learning driving efficiency and
automation in supply chain transportation. International Journal of Managment
Education for Sustainable Development, 6(6), 1–20.