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How Artificial Intelligence is reshaping global supply chains

Daily FT

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August 15, 2025

In today's highly interconnected world, global supply chains are facing more pressure than ever.

How Artificial Intelligence is reshaping global supply chains

From disruptions caused by the pandemic to geopolitical tensions and shifting consumer expectations, companies are looking for smarter ways to manage their operations. Artificial Intelligence (AI) has emerged as a powerful solution that is transforming supply chains from end to end. By using Al, businesses are becoming more efficient, resilient, and responsive in a fast-changing global market.

Enhancing Demand Forecasting and Planning

One of the biggest challenges in supply chain management is predicting what products will be needed, where, and when. Traditional forecasting models often rely on historical data and fixed patterns, which can be inaccurate in times of sudden market shifts. AI helps overcome this limitation by analysing large volumes of real-time data from various sources such as social media trends, weather reports, customer behaviour, and even economic indicators.

AI-powered supply chain analytics forecasting tools use machine learning algorithms to identify patterns and make more accurate predictions. This helps companies plan their inventory more effectively, reduce excess stock, and avoid shortages. Better forecasting also supports smarter procurement and production planning, reducing costs and improving customer satisfaction.

Improving Inventory and Warehouse Management

Managing inventory efficiently is critical for keeping costs low while meeting customer demands. AI plays a key role in optimising how goods are stored, moved, and tracked within warehouses. Smart algorithms analyse inventory levels, product turnover rates, and delivery schedules to suggest the best ways to organise and restock items.

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