Artificial Intelligence In Supply Chain Management: A Strategic Tool For Efficiency

Abstract

Artificial Intelligence (AI) is redefining the landscape of Supply Chain Management (SCM) by offering strategic advantages through enhanced efficiency, agility, and data-driven decision-making. This paper explores the integration of AI technologies—such as machine learning, predictive analytics, computer vision, and natural language processing—across various stages of the supply chain, including demand forecasting, inventory management, procurement, logistics, and customer service. AI enables organizations to optimize operations by minimizing costs, reducing lead times, improving accuracy in demand prediction, and enhancing responsiveness to market changes. Additionally, AI-powered tools support real-time monitoring, automate routine tasks, and facilitate smarter risk management. The study also highlights practical applications, benefits, and implementation challenges faced by industries adopting AI in SCM. Ultimately, the research underscores that AI is not merely a technological enhancement but a strategic enabler that transforms supply chains into intelligent, adaptive, and resilient systems.