ROLE OF ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM) plays an important role in connecting suppliers,

manufacturers, warehouses, and customers. In today’s competitive business environment,

companies face challenges such as demand uncertainty, inventory problems, delays, and high

operational costs. Artificial Intelligence (AI) has emerged as a powerful technology to

improve supply chain efficiency and decision-making. AI uses techniques like machine

learning, predictive analytics, and automation to analyse large amounts of data and provide

accurate forecasts. This paper studies the role of AI in various supply chain activities such as

demand forecasting, inventory management, logistics, supplier selection, and risk

management. The study highlights how AI helps businesses reduce costs, improve accuracy,

and enhance customer satisfaction. It also discusses challenges in adopting AI and the future

scope of AI in supply chain management.