DefinePK

Abstract

The integration of machine learning (ML) in supply chain management (SCM) is revolutionizing the way financial transactions are processed, monitored, and optimized. Traditional financial transaction systems within supply chains often suffer from inefficiencies, latency, fraud vulnerabilities, and limited scalability. This paper explores various machine learning approaches that enhance financial transactions in SCM by improving accuracy, speed, security, and decision-making. Specifically, the study examines supervised learning techniques such as regression and classification for credit risk assessment and payment forecasting, as well as unsupervised learning for anomaly detection and fraud prevention in transactional data. Reinforcement learning is also discussed in the context of dynamic pricing, payment scheduling, and financial risk optimization across supplier networks. Deep learning models, particularly those using neural networks, are highlighted for their capabilities in real-time financial transaction processing and predictive analytics in complex, multi-tiered supply chains. Case studies from leading industries demonstrate the effectiveness of ML in enhancing transparency, reducing transaction costs, and increasing trust between supply chain partners. Furthermore, the paper addresses challenges such as data quality, interpretability of models, regulatory compliance, and the need for robust infrastructure to support ML implementation. The research also outlines best practices for integrating ML into existing financial systems and supply chain platforms, emphasizing the importance of cross-functional collaboration among IT, finance, and operations teams. The study concludes that the adoption of ML-driven solutions can significantly elevate the performance of financial transaction systems in SCM, resulting in improved cash flow management, better supplier relationships, and more resilient supply networks. These findings offer valuable insights for businesses seeking to leverage machine learning for strategic financial and supply chain innovation.
Keywords: Machine Learning, Financial Transactions, Supply Chain Management, Predictive Analytics, Anomaly Detection, Reinforcement Learning, Credit Risk Assessment, Fraud Prevention, Dynamic Pricing, Transaction Optimization.