Enhancing Efficiency and Resilience in Supply Chain Operations

Background - There has been an emergence in adoption of Artificial Intelligence (AI) playing a transformative role and improving decision-making, efficiency, and resilience, while preventing disruptions. This study is aimed to investigate the resilience and efficiency of AI-based supply chain management while determining significant challenges related to implementation of AI.
Methodology – In order to critically evaluate the resilience and efficiency of AI in supply chain, we have adopted a systematic literature review approach to synthesize key findings from previous research, case studies, and frameworks and provide an in-depth understanding of the impact of AI on supply chain operations. Findings – It is observed that AI technologies and automation significantly improve inventory management, demand forecasting, and risk control. AI-based technologies improve agility in supply chain with real-time decision-making and analysis, reducing disruptions, and operational costs. In addition, AI plays a vital role in improving resilience in supply chain by increasing adaptability to market changes, unexpected crisis like pandemics, and geopolitical conflicts.
Irrespective of these benefits, AI has several challenges related to seamless adoption in supply chain, such as high maintenance and implementation costs, data privacy, lack of skilled team, ethical concerns, and complexities related to integration with traditional systems. Organizations often find uncertainties and resistance to change related to AI-based investments. Implications – The study provides key insights to policymakers, researchers, and organizations by discussing both challenges and opportunities related to adoption of AI in supply chains. It is important to understand these factors to form strategies to improve implementation of AI and ensure efficient and sustainable operations in supply chain. Future studies may focus on dealing with challenges related to implementation and adoption of advanced applications for better optimization of supply chain.