Leveraging Artificial Intelligence in Supply Chain Execution in E-commerce

Abstract

Modern perspective of consumer satisfaction has changed due to the proliferation of online businesses. E-commerce has opened up a whole new world to the consumers. The consumers can now get what they want, when they want, delivered at their doorstep. While the ease of online shopping has increased consumerism and consumer demand, it poses significant challenges for the e-commerce players as the consumers are seldom willing to shell out money for availing the convenience of doorstep deliveries. Under such circumstances, the e-commerce players are left with little choices but to significantly enhance their supply chain efficiencies through the improvement of logistics and the delivery services they offer to their customers. Artificial Intelligence or AI, as it is popularly known, is altering the ways and means of these e-commerce businesses. It is changing the manner in which supply chains are managed. Through the use of smart algorithms, data analysis, and automation, it is possible for businesses to employ AI effectively for the optimization of their supply chain management involving inventory and logistics management, demand forecasting, and customer service. This article focuses on logistics management and the application of AI to optimize costs and efficiency in first mile, middle mile and last mile delivery.