Smart Supply Chains: Leveraging AI and Digital Transformation for Route and Distance Optimization
Keywords:
Supply Chain Optimization, Artificial Intelligence (AI), Digital Transformation, Route Optimization, IoT (Internet of Things), RPA (Robotic Process Automation), Digital Twins, Predictive Analytics, Smart Supply Chains, Sustainability in Logistics.Abstract
The global supply chain landscape is undergoing a transformation driven by the integration of artificial intelligence (AI) and digital technologies. Traditional supply chains often face challenges such as inefficient route planning, rising fuel costs, and growing environmental concerns. This research explores how AI, IoT, RPA, and digital twins are enabling smart supply chains, focusing on route and distance optimization. Through a comprehensive review of industry practices and case studies, the paper highlights the cost, time, and environmental benefits of leveraging AI-driven solutions. Key findings reveal that real-time route optimization algorithms, IoT-enabled fleet management, and predictive analytics significantly reduce operational inefficiencies and enhance customer satisfaction (Raj et al., 2020; Kim et al., 2021). Furthermore, the study examines challenges in data integration, cost scalability, and regulatory compliance, offering actionable recommendations for successful implementation (Ivanov et al., 2020; Ghosh et al., 2021). By showcasing examples from leading companies such as Amazon, Walmart, and emerging players like QXO, the paper underscores the critical role of digital transformation in shaping sustainable and efficient supply chains (Van Meldert & De Boeck, 2016).
Downloads
References
Raj, A., & Sharma, M. (2020). "Machine learning in supply chain optimization." Computers in Industrial Engineering. https://doi.org/10.1016/j.cie.2020.107632
Kim, H., & Lee, J. (2021). "IoT adoption in logistics and supply chain management." Sensors and Actuators B. https://doi.org/10.1016/j.snb.2021.130027
Ivanov, D., & Dolgui, A. (2020). "Digital twins for supply chain resilience." International Journal of Production Research. https://doi.org/10.1080/00207543.2020.1760645
Ghosh, S., Biswas, T., & Dutta, P. (2021). "Economic implications of AI adoption in logistics." Economic Modelling. https://doi.org/10.1016/j.econmod.2021.02.004
Van Meldert, B., & De Boeck, L. (2016). "Autonomous vehicles in logistics." Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2016.01.004.
Tang, C. S., & Musa, S. N. (2011). "Identifying risks and mitigating disruptions in supply chains." International Journal of Production Economics.
Kusrini, E., Sari, C. N., & Putra, A. R. (2022). "Supply chain optimization: A systematic review." Journal of Logistics and Operations Management.
Ahmed, Imtiaz, and Ahmed Shoyeb Raihan. "Machine learning techniques for sustainable industrial process control." In Computational Intelligence Techniques for Sustainable Supply Chain Management, pp. 141-176. Academic Press, 2024.
Kim, H., & Lee, J. (2021). "IoT adoption in logistics and supply chain management." Sensors and Actuators B.
Ivanov, D., & Dolgui, A. (2020). "Digital twins for supply chain resilience." International Journal of Production Research.
Ding, Y., Zhang, S., & Jiang, Q. (2022). "Real-time monitoring in logistics using IoT and edge computing." Computers in Industry.
Van Meldert, B., & De Boeck, L. (2016). "Autonomous vehicles in logistics." Transportation Research Part E: Logistics and Transportation Review.
World Economic Forum. (2020). "The future of the last mile ecosystem." WEF Insights.
Strubell, E., Ganesh, A., & McCallum, A. (2020). "Energy and policy considerations for AI." ACL Proceedings.
Ivanov, D., & Dolgui, A. (2020). "Digital twin models for supply chain resilience." International Journal of Production Research.
Chopra, S., & Meindl, P. (2021). "Supply Chain Management: Strategy, Planning, and Operation." Pearson Education.
Ding, Y., Zhang, S., & Jiang, Q. (2022). "Real-time monitoring in logistics using IoT and edge computing." Computers in Industry.
Kim, H., & Lee, J. (2021). "Digital twins in logistics." Sensors and Actuators B.
Ghosh, S., Biswas, T., & Dutta, P. (2021). "Economic implications of AI adoption in logistics." Economic Modelling.
Ghiani, G., Laporte, G., & Musmanno, R. (2013). Introduction to Logistics Systems Management. Wiley.
Psaraftis, H. N. (2016). Green Transportation Logistics: The Quest for Win-Win Solutions. Springer.
Potvin, J.-Y. (1996). "Genetic Algorithms for the Traveling Salesman Problem." Annals of Operations Research, 63, 339–370.
Ulmer, M. W. (2017). "Dynamic Pricing and Routing in Same-Day Delivery." Transportation Science, 51(2), 565–583.
Boyes, H., Hallaq, B., Cunningham, J., & Watson, T. (2018). "The Industrial Internet of Things (IIoT): An analysis framework." Computers in Industry, 101, 1-12.
Christidis, K., & Devetsikiotis, M. (2016). "Blockchains and smart contracts for the internet of things." IEEE Access, 4, 2292-2303.
Lacity, M. C., & Willcocks, L. P. (2016). Robotic Process Automation and Risk Mitigation: The Definitive Guide. SB Publishing.
Lee, I., & Lee, K. (2015). "The Internet of Things (IoT): Applications, investments, and challenges for enterprises." Business Horizons, 58(4), 431-440.
Rayes, A., & Salam, S. (2017). Internet of Things from Hype to Reality: The Road to Digitization. Springer.
Shi, W., Cao, J., Zhang, Q., Li, Y., & Xu, L. (2016). "Edge computing: Vision and challenges." IEEE Internet of Things Journal, 3(5), 637-646.
Defour Analytics. (n.d.). AI in transportation: Traffic management. Retrieved from https://defouranalytics.com/ai-in-transportation-traffic-management
IEEE Xplore. (2019). Multi-dimensional graph convolutional networks for traffic flow prediction. Retrieved from https://ieeexplore.ieee.org/document/8968739
SpringerLink. (2024). Predictive analytics for demand forecasting in urban transport networks. Retrieved from https://link.springer.com/article/10.1007/s12665-024-11900-y
Highways DOT. (2024). Improving traffic flow prediction using real-time data integration. Retrieved from https://highways.dot.gov/research/publications/operations/FHWA-HRT-24-091
Akridata AI. (2024). AI-based traffic management system: Real-time data-driven solutions. Retrieved from https://akridata.ai/blog/ai-based-traffic-management-system
Jesit SpringerOpen. (2023). Scalable predictive models for urban traffic forecasting. Retrieved from https://jesit.springeropen.com/articles/10.1186/s43067-023-00081-6
IJISRT. (2024). AI-driven predictive analysis for urban traffic management: A novel approach. Retrieved from https://ijisrt.com/aidriven-predictive-analysis-for-urban-traffic-management-a-novel-approach
Wikipedia. (n.d.). Aimsun Live. Retrieved from https://en.wikipedia.org/wiki/Aimsun_Live
EPS News. (2024, December 27). Digital twins: Transforming the supply chain. Retrieved from https://epsnews.com/2024/12/27/digital-twins-transforming-the-supply-chain/
AnyLogic. (2023). Simulation-based digital twins for your business: Industry-related case studies. Retrieved from https://www.anylogic.com/blog/simulation-based-digital-twins-for-your-business-industry-related-case-studies/
Simul8. (2023). CEVA Logistics uses simulation to increase efficiency at new fulfillment centers. Retrieved from https://www.simul8.com/case-studies/ceva-logistics-simulation-digital-twin
Boysen, N., Briskorn, D., & Emde, S. (2021). Autonomous vehicles in logistics: A review of their impact on time efficiency and service quality. Transportation Research Part E, 149, 102290.
Choi, T. M., Wallace, S. W., & Wang, Y. (2021). Artificial intelligence in supply chains: Current trends and future directions. International Journal of Production Research, 59(6), 1835-1847.
Christopher, M., & Holweg, M. (2017). Supply chain 4.0: Leveraging digital technologies for superior customer experience. Journal of Business Logistics, 38(4), 234-245.
Francisco, K., & Swanson, D. (2018). The supply chain has no chain: Blockchain for supply chain transparency. Journal of Supply Chain Management, 54(1), 25-32.
Gevaers, R., Van de Voorde, E., & Vanelslander, T. (2022). Greening the last mile: Sustainable solutions for urban logistics. Renewable and Sustainable Energy Reviews, 158, 112091.
Ivanov, D., & Dolgui, A. (2020). Digital supply chain twin: Conceptual framework and impact on resilience. IFAC PapersOnLine, 53(5), 324-329.
Wang, Q., Zhang, X., & Zhao, K. (2019). IoT-enabled smart supply chains: Enhancing efficiency and sustainability. Computers & Industrial Engineering, 136, 101-112.
Yu, W., Jacobs, M. A., & Chavez, R. (2020). Real-time data and personalized services in smart supply chains. Supply Chain Management Review, 45(3), 16-22.
Agrawal, A., Gans, J. S., & Goldfarb, A. (2018). Prediction machines: The simple economics of artificial intelligence. Harvard Business Review Press.
Baker, L. (2020). The rise of automation in Amazon warehouses. Journal of Supply Chain Automation, 5(3), 112-125.
Chopra, S., & Meindl, P. (2019). Supply chain management: Strategy, planning, and operation (7th ed.). Pearson.
Fernandez, R., Johnson, H., & Li, W. (2023). Generative AI in logistics: Applications and impact. International Journal of Logistics Research and Applications, 26(1), 34-56.
Huang, Z., & Zhang, Y. (2022). AI-driven fast fashion: The case of Shein. Fashion and Technology Review, 9(2), 67-80.
Kshetri, N. (2021). Blockchain in food supply chains: Opportunities and challenges. Journal of Supply Chain Innovation, 13(1), 89-105.
Patel, A., & Khan, M. (2024). AI strategies in emerging logistics firms: A case study of QXO. AI and Business Strategy Review, 12(4), 45-62.
Smith, R., & Taylor, E. (2023). Sustainability through AI in logistics: Insights from Mars Inc. Sustainable Business Journal, 8(1), 78-95.
Ivanov, D., & Dolgui, A. (2020). "A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0." International Journal of Production Research.
Ding, Y., Zhang, S., & Jiang, Q. (2022). "Real-time monitoring in logistics using IoT and edge computing." Computers in Industry.
Elmasri, R. (2020). "Supply chain cybersecurity: Threats and strategies." Supply Chain Management Review.
Ghosh, S., Biswas, T., & Dutta, P. (2021). "Economic implications of AI adoption in logistics." Economic Modelling.
Balaji, M. S., & Kumar, V. (2020). "Adopting AI in supply chain: Infrastructure challenges." Operations Research Perspectives.
Lamba, P., & Singh, P. (2021). "Scalability issues in supply chain AI systems." Journal of Supply Chain Management.
McKinsey & Company. (2022). "The state of AI in supply chain management." McKinsey Insights.
Gill, A., & Poon, C. (2020). "Skill transformation in logistics automation." Technological Forecasting and Social Change.
Lewin, K., & Parker, G. (2021). "Adapting workforce to automation." Journal of Organizational Psychology.
Forbes Insights. (2021). "How UX impacts AI adoption in supply chains." Forbes Technology Council.
Obermeyer, Z., Powers, B., & Vogeli, C. (2019). "Algorithmic fairness in AI systems." Science.
Kuner, C., & Svantesson, D. (2021). "Data protection in AI systems." International Data Privacy Law.
Sattler, M., & Klöpper, H. (2021). "Legal considerations in AI adoption." Logistics Research.
Strubell, E., Ganesh, A., & McCallum, A. (2020). "Energy and policy considerations for AI." Proceedings of ACL.
Binns, R., & Veale, M. (2020). "Accountability in AI-driven systems." AI & Society.
• Ivanov, D., & Dolgui, A. (2020). "Digital twins for supply chain resilience." International Journal of Production Research. https://doi.org/10.1080/00207543.2020.1760645
Ghosh, S., Biswas, T., & Dutta, P. (2021). "Economic implications of AI adoption in logistics." Economic Modelling. https://doi.org/10.1016/j.econmod.2021.02.004
Van Meldert, B., & De Boeck, L. (2016). "Autonomous vehicles in logistics." Transportation Research Part E: Logistics and Transportation Review. https://doi.org/10.1016/j.tre.2016.01.004
Ghosh, S., Biswas, T., & Dutta, P. (2021). "Economic implications of AI adoption in logistics." Economic Modelling. https://doi.org/10.1016/j.econmod.2021.02.004.
Raj, A., & Sharma, M. (2020). "Machine learning in supply chain optimization." Computers in Industrial Engineering. https://doi.org/10.1016/j.cie.2020.107632
Downloads
Published
How to Cite
Issue
Section
License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
All papers should be submitted electronically. All submitted manuscripts must be original work that is not under submission at another journal or under consideration for publication in another form, such as a monograph or chapter of a book. Authors of submitted papers are obligated not to submit their paper for publication elsewhere until an editorial decision is rendered on their submission. Further, authors of accepted papers are prohibited from publishing the results in other publications that appear before the paper is published in the Journal unless they receive approval for doing so from the Editor-In-Chief.
IJISAE open access articles are licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. This license lets the audience to give appropriate credit, provide a link to the license, and indicate if changes were made and if they remix, transform, or build upon the material, they must distribute contributions under the same license as the original.