From Tradition to Technology: Utilization of AI and ML for Digital Transformation in Supply Chain Management

Abstract

The combination of AI and ML is driving supply chain digitalization. This chapter discusses supply chain management (SCM) in the digital age, including AI, ML, and classical techniques, SCM aspects and components, and supply chain network strategies. The chapter also covers AI and ML applications in supply chain optimisation, resilient supply chain network (SCN) methods, warehouse automation and robotics, transportation and route optimisation, and supply chain risk management. AI and ML enable supply chain stakeholders to use massive data streams for predictive analytics. AI-driven demand forecasting, inventory optimisation, and predictive maintenance reduce hazards and streamline resource allocation, improving cost-effectiveness. In a world of rapid change and innovation, organisations must use AI and ML as the supply chain ecosystem evolves.