The Role of Artificial Intelligence (AI) in Supply Chain Management of Amazon: A Study on the Efficiency and Cost Reduction.

Abstract

The focus of this study is to analyze the effects of implementing artificial intelligence (AI) in supply chain management, with Amazon serving as a case study. The analysis demonstrates how AI-powered tools can significantly improve supply chain efficiency and cost reduction, resulting in improved customer satisfaction and increased revenue. The study reveals that Amazon has achieved significant cost reduction and increased efficiency in its supply chain management operations through the use of AI-powered tools, such as demand forecasting, inventory management, transportation management, and warehouse management. Additionally, AI has enabled Amazon to optimize its logistics operations and identify potential disruptions, leading to improved operational efficiency. Based on the findings, this study recommends that companies invest in AI-powered tools to automate routine tasks, optimize processes, and improve decision-making in their supply chain management operations. The successful adoption of AI requires significant investments in technology and expertise, as well as the integration of AI with existing systems and processes. Therefore, companies should plan and execute the integration of AI-powered systems carefully to ensure that they are fully aligned with existing systems and processes. Subsequent studies may explore how the integration of AI affects supply chain management across diverse sectors and geographical areas, and also the progress of AI-based platforms capable of managing intricate supply chain operations.