Artificial Intelligence and Digital Transformation in Supply Chain Management A Case Study in Saudi Companies

Abstract

Supply chain Management (SCM) contains of several complex process and is fundamental for gaining financial, environmental, and social countless in companies in the Kingdom of Saudi Arabia. The study was conducted using an online questionnaire with a sample size of 95 employees and supply chain staff in some private organizations in the Kingdom of Saudi Arabia that to investigate and identify the positive influence of artificial intelligence and digital transformation on SCM. Data were analyzed using descriptive statistics, and linear regression was employed to examine the relationships between the variables under investigation. The overall results showed that artificial intelligence (AI) and digital transformation (DT) has a significant and positive impact on SCM. However, the most significant advantages of artificial intelligence and digital transformation are increased, quality standards, flexibility, efficiency, and productivity. The results indicate that a connection exists between the expert system and SCM. Also, suggest that there is a correlation between digital transformation and SCM, as well as a correlation between artificial intelligence and SCM. However, to attain the smart supply chain management of Saudi firms in the kingdom of Saudi Arabia, it needs to encourage cost reduction, risk assessment, blockchain, resource sustainability, and idea-sharing to promote SCM process, which may result in improving and enhancing overall supply chain output.