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Exploring AI-driven supply chain automation to enhance global logistics, reduce operational costs, and ensure resilient business continuity


Article Information

Title: Exploring AI-driven supply chain automation to enhance global logistics, reduce operational costs, and ensure resilient business continuity

Authors: Juwon Kehinde Olowonigba

Journal: Engineering science & tecnology journal

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Year: 2025

Volume: 6

Issue: 8

Language: en

DOI: 10.51594/estj.v6i8.2021

Categories

Abstract

Global supply chains form the backbone of international trade, enabling the movement of goods, services, and raw materials across complex networks. However, traditional supply chain models are increasingly strained by rising operational costs, demand volatility, and disruptions driven by geopolitical tensions, pandemics, and climate events. These challenges highlight the urgent need for resilient, cost-efficient, and adaptive logistics systems. Artificial intelligence (AI) has emerged as a transformative enabler, offering the potential to automate, optimize, and secure global supply chain operations. AI-driven supply chain automation leverages predictive analytics, machine learning, and real-time data integration to enhance visibility and decision-making across logistics networks. By enabling accurate demand forecasting, AI reduces overproduction, minimizes inventory holding costs, and prevents costly stockouts. In logistics, automation technologies such as robotic process automation (RPA), autonomous vehicles, and AI-enabled route optimization streamline transportation flows, cutting fuel costs and delivery times. Furthermore, AI-powered risk detection and simulation tools allow firms to anticipate disruptions and reconfigure supply chain strategies proactively, ensuring business continuity in volatile markets. From a resilience perspective, AI enhances supply chain agility by enabling real-time monitoring of suppliers, transportation routes, and customer demand. This capability supports adaptive responses to shocks while reducing inefficiencies and environmental impacts. Importantly, integrating AI with blockchain and Internet of Things (IoT) platforms strengthens transparency, accountability, and trust within global logistics ecosystems. Overall, AI-driven automation represents a paradigm shift in supply chain management, moving organizations beyond reactive crisis management toward proactive resilience, cost optimization, and sustainable global logistics operations.
Keywords: Supply Chain Automation, Artificial Intelligence, Global Logistics, Business Continuity, Operational Cost Reduction, Resilient Systems. 


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