The impacts of the internet of things and artificial intelligence on logistics in supply chain management

Abstract

The transportation and management of goods industry, along with the operations of many related companies, could be significantly transformed by two fast-developing technologies: the internet of things (IoT) and artificial intelligence (AI). In more detail, for overseeing the movement and storage of goods in this sector, various strategies and structures have been suggested in academic writings. However, these suggestions often overlook how IoT and AI can be combined. To address this oversight, the present study introduces a new approach named IoT-AI-SCM, created using design science. This approach brings together the mentioned technologies within the management of supply chains. The method applied in this study is known as the design science method. The approach we developed is outlined in five key steps: 1) utilizing sensors and devices enabled by IoT, 2) gathering and connecting data, 3) storing and processing data using cloud technology, 4) applying AI, 5) analyzing and predicting outcomes, and 6) smart planning and improvement. By implementing this proposed approach, a company can reimagine its supply chain and logistics management using the essential features of IoT and AI.