REVOLUTIONIZING SUPPLY CHAINS: THE TRANSFORMATIVE ROLE OF ARTIFICIAL INTELLIGENCE IN LOGISTICS

Artificial Intelligence (AI) is significantly transforming the logistics sector by improving efficiency and reducing operational costs across various supply chain processes.

This study, based on a qualitative analysis of secondary data from academic and industry sources, highlights how AI optimizes inventory management, route planning, and warehouse automation.

AI-driven solutions can lead to substantial benefits, such as reducing inventory costs by up to 20%, cutting transportation expenses by 10-15%, and boosting warehouse productivity by 30%. Successful implementations by industry leaders like DHL, Huawei, FedEx, and Amazon demonstrate improved delivery reliability and enhanced customer satisfaction.

 However, the adoption of AI in logistics is not without its challenges, including high initial investment costs, complex integration with legacy systems, skill shortages, and data security concerns.

Despite these hurdles, strategic investments and a focus on workforce readiness are crucial to fully unlock AI's potential in streamlining operations and fostering sustainable supply chains, with future advancements expected in autonomous delivery systems and smart warehouses