EXPLORING THE ROLE OF ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN OPTIMIZATION FOR FMCG COMPANIES
Keywords:
Artificial Intelligence (AI), Supply Chain Optimization, FMCG Sector, Demand Forecasting, and Sustainable PracticesAbstract
There is no denying the fact that incorporation of AI in supply chain is changing the face of FMCG sector by providing a great potential for process improvements. In this research, we examine how AI enables technologies to affect the supply chain with an emphasis on demand prediction and planning, inventory management, negotiation with suppliers, and overall flow of goods. Across these fields, it becomes evident that the application of AI is highly beneficial in various ways such as; minimizing the errors associated with the forecast, improving supplier relations and finally increasing effectiveness in the supply chain through efficiency and costs. However, the study also reveals some of the factors that may hinder the adoption of AI solutions which include; quality of data, costs of technology and human capital, and lack of skilled personnel in an organization. Moving to the future findings, the research put emphasis on the further adoption of new and more advanced AI solutions, improvement of data management processes, and organization’s employee training as the key to the effective AI implementation in the FMCG sector. Furthermore, the study which underlines the research put the focus on the sustainable and ethical usage of AI and development of new technologies to match the ideal of the general environmental and social sustainable development. Mitigating these factors and embracing AI innovations in the future, FMCG companies can work with increased competitive advantage, operate better in terms of their performance, and prepare for a new stage in a constantly changing environment.
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