Use Cases of Machine Learning in Supply Chain Management

Logistics Tech Outlook | Monday, July 12, 2021

Supply chain management can become a daunting task, but technologies like machine learning and AI can help companies at every stage.

FREMONT, CA: Today, businesses are questioning how to make their supply chain less vulnerable to disruption in the face of evolving supply chain market dynamics, changing ways of working, and increasingly unpredictable demand. Several well-known and emergent supply chain difficulties can be solved with machine learning.

Machine learning has many applications in the supply chain. Every component of the supply chain, such as procurement, production, inventory management, warehousing, shipping, and customer support, can profit from machine learning and AI. Let's take a closer look at some of the applications of machine learning in the supply chain.

Companies have all witnessed the evolution of the conventional linear supply chain into digital supply networks in recent years (DSNs). COVID-19 has intensified this transition, forcing businesses to reconsider their global supply chain strategy in light of the new reality. Conventional linear supply chains may be transformed into connected, intelligent, scalable, and configurable digital supply networks using technologies like IoT, artificial intelligence, and machine learning.


The manner in which retailers and suppliers work is changing because of machine learning technologies in the supply chain. Machine learning is a kind of artificial intelligence that utilizes data to train a computer model to adapt to changing circumstances without having to be taught to do so.

Logistics & transportation

ML helps in determining the location of a shipment in the logistics process. It enables supply chain managers to track the position of commodities as they travel. It also allows them to see the conditions in which the product is being carried. Retailers can use sensors to monitor variables like humidity, vibration, temperature, and so on. ML also aids in real-time route planning.


Chatbots trained to recognize specific keywords and phrases that trigger a bot's response are intellectually independent chatbots built on machine learning technology. They're commonly utilized in supplier relationship management, sales, and procurement management, letting employees focus on higher-value duties rather than getting frustrated with trivial questions. 


Machine learning algorithms can evaluate massive volumes of data and identify trends in order to safeguard businesses from fraud. For example, in the supply chain, machine learning helps detect fraudulent transactions, prevent credential exploitation, speed up fraud investigations, and automate anti-fraud activities. Supply chain experts can use machine learning to automate the process of ensuring that all parts and finished products fulfill quality and safety criteria. 

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