How can AI support better strategic decision-making in supply chain management?

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How can AI support better strategic decision-making in supply chain management?

Asked on Dec 29, 2025

Answer

AI can significantly enhance strategic decision-making in supply chain management by providing predictive analytics, optimizing operations, and offering real-time insights. Tools like IBM Watson Supply Chain and SAP Integrated Business Planning use AI to forecast demand, manage inventory, and streamline logistics, enabling more informed and agile decision-making.

Example Concept: AI-driven predictive analytics can analyze historical sales data and external factors such as market trends and weather patterns to forecast demand more accurately. This allows supply chain managers to optimize inventory levels, reduce waste, and improve service levels by aligning production and distribution with anticipated demand.

Additional Comment:

AI can identify patterns and anomalies in supply chain data that may not be visible through traditional analysis.
Real-time AI insights help in adjusting strategies quickly in response to unexpected disruptions or changes in demand.
AI tools can automate routine tasks, freeing up human resources for more strategic activities.
Integration with IoT devices can enhance visibility and control over supply chain operations.

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