Challenges and opportunities of introducing Internet of Things and Artificial Intelligence applications into Supply Chain Management

Abstract

The study examines the challenges and opportunities of introducing Artificial Intelligence (AI) and the Internet of Things (IoT) into the Supply Chain Management (SCM). This research focuses on the Logistic Management. The central research question is “What are the key challenges and opportunities of introducing AI and IoT applications into the Supply Chain Management?” The goal of this research is to collect the most appropriate literature to help create a conceptual framework, which involves the integration of the IoT and AI applications into contemporary supply chain management with the emphasis on the logistics management. Additionally, the role of 5G Network is closely studied in order to indicate its capabilities and the processing capacity that it can provide to the AI and IoT operations. In addition, the semi-structured online interview with the top managers from several companies was conducted in order to identify the degree of readiness of the companies for the AI and IoT applications in SCM. From the retrieved results, the major challenges of integrating the IoT into SCM are the security and privacy issues, the sensitivity of the data and high costs of the implementation at an initial stage. Moreover, the research results have shown that the IoT applications can positively affect the SCM activities, in particular, the high visibility across the SC, an effective traceability and an automated data collection. Furthermore, the predictive analysis of AI programs can help the SCM to eliminate the potential errors and failures in the processes.