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Industry experiences of artificial intelligence (AI): benefits and challenges in


operations and supply chain management

Article in Production Planning & Control · April 2021


DOI: 10.1080/09537287.2021.1882695

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Production Planning & Control
The Management of Operations

ISSN: (Print) (Online) Journal homepage: https://www.tandfonline.com/loi/tppc20

Industry experiences of artificial intelligence (AI):


benefits and challenges in operations and supply
chain management

Samuel Fosso Wamba, Maciel M. Queiroz, Cameron Guthrie & Ashley


Braganza

To cite this article: Samuel Fosso Wamba, Maciel M. Queiroz, Cameron Guthrie &
Ashley Braganza (2021): Industry experiences of artificial intelligence (AI): benefits and
challenges in operations and supply chain management, Production Planning & Control, DOI:
10.1080/09537287.2021.1882695

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PRODUCTION PLANNING & CONTROL
https://doi.org/10.1080/09537287.2021.1882695

Industry experiences of artificial intelligence (AI): benefits and challenges in


operations and supply chain management
Samuel Fosso Wambaa , Maciel M. Queirozb , Cameron Guthriea and Ashley Braganzac
a
Information, Operations and Management Sciences, TBS Business School, Toulouse, France; bPostgraduate Program in Business
Administration, Paulista University – UNIP, S~ao Paulo, Brazil; cCollege of Business, Arts and Social Sciences, Brunel Business School,
Uxbridge, UK

ABSTRACT ARTICLE HISTORY


This editorial aims to present the papers accepted for the special issue (SI) ’Industry experiences of Received 20 January 2021
Artificial Intelligence (AI): benefits and challenges in operations and supply chain management.’ First, Accepted 24 January 2021
we provide a brief introduction considering the relationship between AI and operations and supply
KEYWORDS
chain management (OSCM) by highlighting some companies already using and practical insights. In
Editorial; artificial
sequence, we introduce the papers selected for the SI. The last section gives some intriguing and chal- intelligence; AI; industry
lenging research directions for scholars and industry practitioners by highlighting potential topics, experiences; operations and
research opportunities, and possible benefits. Through this SI, we look forward to helping industry supply chain management;
practitioners, policy-makers, scholars, and all interested in this field to gain more knowledge about AI production systems
applications and insights in relation to OSCM.

1. The interplay between AI and OSCM It is worth noting that AI can also be combined with
other Industry 4.0 cutting-edge technologies, such as big
Recent cutting-edge technologies such as AI, big data, block-
data analytics, blockchain, the internet of things and cyber-
chain, drones, robotics, augmented reality, virtual reality, 3 D
physical systems (Hughes et al. 2020). Today’s operations
Printing, Internet of Things (IoT), 5 G, and biometrics are and supply chain managers need to understand better how
already transforming the way people acquire and consume AI can be applied to OSCM problems and activities. In this
goods, the way firms manufacture and deliver such goods, vein, top consulting firms like McKinsey, Deloitte, Ernst &
as well as the interactions between logistics networks and Young, among others, have highlighted the potential of AI
the society as a whole. These technologies are at the core of applications to create business value and enable competitive
the fourth Industrial Revolution, or Industry 4.0 advantage (Mackinsey & Company 2020; Deloitte 2020; Ernst
(Papadopoulos et al. 2021). In this context, business models & Young 2020). However, it is essential to point out that only
and logistics production systems need to adapt to the new AI tools’ adoption does not ensure benefits, which makes it
dynamics of production and consumption (Queiroz, Fosso necessary to have a set of strategies for operations efficiency
Wamba, et al. 2020; Fosso Wamba and Queiroz 2020; and business growth, risks management, and smart partner-
Hennelly et al. 2020). ships (Deloitte 2020). Table 1 draws attention to some AI
The ubiquity of mobile devices and apps is drastically applications in different industries, based on accrued experi-
changing the customer experience and expectations, allow- ence by industry practitioners.
ing individuals to participate in various stages of the produc- The use of AI applications within an OSCM context
presents considerable managerial and organisational chal-
tion process. One of the most disruptive technologies for
lenges. For example, in the adoption stage managers need
contemporary operations and supply chain management
to identify the requisite capabilities and potential obstacles
(OSCM) is artificial intelligence (AI) (Fosso Wamba et al. 2021;
to successful AI implementation (Dwivedi et al. 2021).
Dubey et al. 2020; Grover, Kar, and Dwivedi 2020), a new
Besides, the potential impact of AI on operations manage-
generation of which is being used to work on a vast array of ment, production planning and control, productivity and per-
issues, including product recommendations and customisa- formance is tremendous. However, there is a need for more
tion, dynamic pricing, real-time production tracking, preven- in-depth industry case experience and insights about AI
tion of order shipment delays and inventory shortages, usage within organisations for existing OSCM problems (e.g.
customer feedback collection for product development, and production planning and control, demand forecasting, opera-
supplier monitoring for procurement costs reduction (Syam tions management optimisation, distribution management,
and Sharma 2018; Dong et al. 2021). quality control, maintenance, etc.). In addition, considering

CONTACT Samuel Fosso Wamba s.fosso-wamba@tbs-education.fr Information, Operations and Management Sciences, TBS Business School, 1 Place
Alphonse Jourdain, Toulouse 31068, France
ß 2021 Informa UK Limited, trading as Taylor & Francis Group
2 S. FOSSO WAMBA ET AL.

Table 1. Some examples of industry experiences of AI.


Company Type of AI Example of application Example of main benefits
Amazon Robots Warehouse operations Productivity improvement and errors minimisation
DHL IDEA algorithm Routes optimisation and staff allocation Order-picking processes improvement, costs
minimisation, and e-fulfilment optimisation
General Motors Computer vision Monitoring failing robotics in Predictive maintenance and downtime minimisation
assembly operations
Goodyear AI sensors with IoT Smart tyre Monitoring and control of the tire changes and self-
repair in case of damage
Nestle Augmented reality (AR) Remote production and assistance, connecting Operations efficiency increase, quick response, CO2
suppliers, people and factories minimisation
Netflix Machine learning Movies and content production Resources and production process optimisation, and
customer product prediction
Atomwise Deep convolutional Drug discovery Drug discovery process optimisation
neural network

Table 2. Papers selected for this special issue.


Running order Manuscript title Authors
1. Editorial Industry Experiences of Artificial Intelligence: Benefits and Fosso Wamba, Samuel; Queiroz, Maciel M.; Guthrie,
Challenges in Operations and Supply Chain Management Cameron; Braganza, Ashley
2 Artificial Intelligence and Food Security: Swarm Intelligence Spanaki, Konstantina; Karafili, Erisa; Sivarajah, Uthayasankar;
of AgriTech Drones for Smart AgriFood Operations Despoudi, Stella; and Irani, Zahir
3 Adoption of AI-empowered Industrial Robots in Auto Pillai, Rajasshrie; Sivathanu, Brijesh; Mariani, Marcello; Rana,
Component Manufacturing Companies Nripendra; Yang, Bai, and Dwivedi, Yogesh
4 Gigification, Job Engagement, and Satisfaction: The Braganza, Ashley; Chen, Weifeng; Canhoto, Ana; and
Moderating Role of AI Enabled System Automation in SAP, Serap
Operations Management
5 Improving Food Safety through Data Pattern Discovery in a Jacobsen, Hendrik and Tan, Kim Hua
Sensor-Based Monitoring System
6 Managing Production Systems with Machine Learning: A Xia, Huosong; An, Wuyue; Zhang, Zuopeng (Justin); and
Case Analysis of Suzhou GCL Photovoltaic Technology Liu, Genwang
7 Artificial Intelligence in Operations Management and Supply Helo, Petri and Hao, Yuqiuge
Chain Management: An Exploratory Case Study
8 Understanding the implications of Artificial Intelligence on Wang, Yingli; Skeete, Jean-Paul; and Owusu, Gilbert
Field Service Operations: A Case Study of BT

unstable and unpredictable disruptions scenarios for contem- papers that present drone swarm intelligence; AI-empowered
porary OSCM (Queiroz, Ivanov, et al. 2020), AI becomes most industrial robots; and artificial intelligence system automa-
critical in production systems activities, not only to improve tion. The second group has two papers presenting an associ-
performance but also to support an entire journey to organi- ation rule/Apriori algorithm, and sensor-based systems;
sations business value. machine learning and big data. We have two miscellaneous
Therefore, the primary objective of this special issue is to papers in the last category, which consider a rule-based sys-
stimulate ’industry experience of AI in OSCM’ by presenting tem, genetic algorithm, deep neural network, clustering ana-
the finest research, industry experiences, and a debate lysis, machine learning, machine learning, neural networks,
around how managers and industry practitioners are using genetic algorithm, classification tree, and heuristic, metaheur-
or could use AI to improve OSCM practice and performance istics, evolutionary algorithms, and hybrid AI-simulation.
and create competitive advantage, as well as around the
enablers and inhibitors of adoption, integration and use.
2.1. AI-robots approach
Spanaki et al., through a design science approach, present
2. Papers in this special issue
an intriguing study in the first paper, considering drone
In response to our call for papers considering AI’s role in swarms intelligence in agricultural technology (AgriTech)
OSCM, especially how AI could improve firms’ performance scenarios. The paper points out that the smart AgriFood
and create value in a digital age when combined with other operations, supported by drone swarm scenarios, could sup-
Industry 4.0 cutting-edge technologies, we received excellent port farming operations and productivity in inaccessible
papers from scholars and industry practitioners. Thus, this SI areas and address food security problems.
has seven exceptional papers (Table 2) covering different AI In the second paper, Pillai et al., investigate the AI-
applications in OSCM-related fields, exploring attractive empowered Industrial Robots (InRos) adoption in the Indian
industries with robust theories and methods, and presenting Auto Component Manufacturing Companies (ACMCs). The
stimulating findings. paper’s conceptual model is supported by the well-known
The papers were organised according to the AI-approach. Technology, Organisation, and Environment (TOE) framework.
In this vein, we have three main categories, AI-robots By analysing 460 responses from managers and owners, the
approach, AI-association rules and machine learning, and AI- authors show that the critical predictors of InRos adoption
miscellaneous approach. The first one comprises three intention were perceived compatibility, external pressure,
PRODUCTION PLANNING & CONTROL 3

Table 3. Research agenda for AI in OSCM.


Primary topic Research opportunities Possible benefits
AI for remote and Investigation of the leading AI applications to Production costs transactions and accidents minimisation; world-
teleworking activities production, planning and control activities class support and maintenance
AI and workers relationship Identification of how AI could support and Workers safety improvement; Setup times reduction; errors
improve production’s worker’s activities and minimisation; human-robot collaboration
performance
AI for real-time production Identification of opportunities to improve process Quality inspections time and costs minimisation; scrap
systems performance efficiency and waste minimisation by minimisation
AI approaches
AI for personalised goods Exploring new production models considering With ’real-time’ customer monitoring and feedback, the
customer interaction through the whole production systems and the supply chain could be benefitted
production process by a more ’realistic’ and optimised scheduling; and call centre
costs minimisation
AI for product design and Examination of how AI tools integrated with Improvement of the value added to the customers; positive
prototyping additive manufacturing could improve the social impacts strengthening (e.g. medical supplies,
organisations time-to-market humanitarian operations support)
AI integration with other Investigation AI approaches’ synergies with other AI with blockchain/additive manufacturing/edge and quantum
cutting-edge technologies technologies like blockchain, edge and quantum computing, digital twin applications for leverage and improve
computing, digital twin, additive the response, agility and flexibility in the production systems
manufacturing, etc. and OSCM (e.g. ramp-up and shortages production during
severe disruptions)
AI for unpredictable Exploring how AI could support OSCM activities Production systems resilience improvement; forecast prediction
disruptions considering highly disruptive events improvement; more realistic production planning
AI implementation cultural Examination of differences of AI barriers and Policies and production strategies for successful AI projects
barriers and enablers enablers implementation in production systems implementation; Effective usage/development of the essential
according to geographic region organisation’s capabilities to AI projects
AI critical success factors (CSF) Identification of the AI CSF on production systems Development of more accurate production policies; organisation’s
capabilities and production staff training improvement
AI for an effective relationship Investigation about how AI could minimise With machine learning combined with blockchain, the
with the OSCM members inefficiencies in the production systems transactions costs between the members could be drastically
transactions and activities communication minimised; improvement of the data accountability and
trough the value chain information sharing

perceived benefits, and vendors’ support. In contrast, they The fifth paper, by Xia et al., explores the production con-
found that IT infrastructure and government support do not trol dynamics and the interplay between production system
predict InRos adoption intention. Furthermore, the paper high- optimisation and lean strategic planning. The authors employ
lights the moderate negative effect of perceived cost issues. machine learning and big data, taking into account a case in
In the third paper, by Braganza et al., the authors investi- one of the largest photovoltaic worldwide manufacturers.
gate, in the ‘gig work’ context, the term of gigification for Supported by data analysis and observation, they report that
the jobs that remain after the possible effects of Artificial machine learning positively affects quality management. Besides,
Intelligence System Automation (AI-SA). The adopted theor- they demonstrate that data, information, and knowledge jointly
etical model enables them to examine system automation’s impact production systems intelligence performance.
impact on both job engagement and job satisfaction. Using
a survey in a representative London area, the authors show
intriguing findings, including that job satisfaction and
2.3. AI-miscellaneous approach
engagement can increase by gigification. Simultaneously, AI-
SA undermines the positive effect of gigification, considering In the sixth paper, Helo and Hao present four case studies,
the workers from the production and supply chain industry. with semi-structured interviews and critical analysis, consider-
ing the AI-driven supply chain and applications. The study pro-
vides valuable, singular guidance and insights about AI
strategies implementation to supply chain management and
2.2. AI-association rules and machine learning
its contributions to the operational performance. The authors
In the fourth paper, Jacobsen and Tan develop a model also identify various and potential value creation areas, consid-
addressing data pattern discovery in a sensor-based monitor- ering the interplay between AI and supply chain applications.
ing system to improve food safety. The authors highlight a Finally, in the seventh paper, Wang, Skeete, and Owusu
model approaching a transferable association rule, with sup- examine AI’s implications on field service operations. The
port scalability, actionable information, and data insight. authors analyse a case study from the BT organisation,
They then resort to the ‘Cross-Industry Standard Process for employing longitudinal and participative approaches with
Data Mining’ (CRISP-DM) approach to analyse more than respondents based in the UK and France. The paper explores
4000 alarm entries from a fast-food franchise. Managers the dynamics of the deployment of artificial agents on oper-
should take advantage of the valuable findings that are pro- ational efficiency. It identifies a set of critical success factors
vided to improve their food safety operations. that are fundamental to AI field service operations’ success.
4 S. FOSSO WAMBA ET AL.

3. Research directions for scholars and industry Scholar h-index is 46, with 9 085 citations by November 29. He tweets
practitioners at @fowassa.

The above-mentioned and insightful AI industry experience


concerning the impact of Artificial Intelligence on Operations Dr. Maciel M. Queiroz is a Professor and Researcher
and Supply Chain Management allows us to conclude by of Operations and Supply Chain Management at
presenting an encouraging, stimulating, and thought-provok- Paulista University – UNIP. He earned his Ph.D. in
Naval Architecture and Ocean Engineering at the
ing research agenda (Table 3).
University of Sao Paulo, Brazil. His current research
focuses on Digital transformation, including Digital
supply chain capabilities, Industry 4.0, AI, Blockchain,
Acknowledgments Big data, and IoT. He has published papers in top-
This special issue results from an excellent and intensive collaboration of tier international journals and conferences, including
scholars, industry practitioners, guest editors, contributing authors, and the International Journal of Production Economics, International Journal of
the journal’s staff. We especially thank all the reviewers who provided Production Research, International Journal of Information Management,
exceptional feedback in all rounds for the authors. We would also like to International Journal of Logistics Management, Supply Chain Management,
give special thanks to Mrs. Heather Childe, Assistant to the Editor of Annals of Operations Research, Technological Forecasting and Social
Production Planning & Control Journal, Taylor and Francis (staff), and the Change, Business Process Management Journal, Benchmarking, among
Editor, Prof Stephen J. Childe. Their assistance was just wonderful during others. His research also appeared in the Proceedings of the IFAC-MIM,
the whole review cycle to release this special issue on time. IMAM, TMS, ISL, among others. He serves as a reviewer for international
journals and conferences. He has been serving as a Guest Co-Editor for
top-tier journals, including Production Planning and Control, Annals of
Disclosure statement Operations Research, International Journal of Information Management,
International Journal of Operations & Production Management, Industrial
No potential conflict of interest was reported by the author(s). Management and Data Systems, etc.

Notes on contributors Dr. Cameron Guthrie is an Associate Professor in


decision and system sciences at Toulouse Business
School. He earned his Ph.D. in management science
Samuel Fosso Wamba is a Professor at Toulouse at the Universite de Paris Pantheon-Sorbonne. His
Business School, France, and Visiting Professor of current research focuses on electronic commerce,
Artificial Intelligence in Business at The University of digital strategy and technology adoption. He has
Bradford, UK. He earned his Ph.D. in industrial engin- published papers in a variety of journals including
eering at the Polytechnic School of Montreal, Technological Forecasting and Social Change,
Canada. He also holds two master’s degrees: one Knowledge Management Research & Practice, Business
MSc in mathematics from the University of Process Management Journal, Industrial Relations, Accounting & Finance,
Sherbrooke in Canada and another MSc in electronic Journal of Management History, History of Economic Ideas, Journal of
commerce (major: computer science) from HEC Entrepreneurship Education and Journal of Information Systems Education.
Montreal, Canada. His current research focuses on business on the busi-
ness value of I.T., inter-organisational systems adoption, use and impacts,
supply chain management, electronic commerce, blockchain, artificial
intelligence for business, social media, business analytics, big data, and Professor Ashley Braganza is the Deputy Dean of
open data. His work has been published in several international confer- the College of Business, Arts and Social Sciences in
ences and journals, including the following: Academy of Management Brunel University London. He holds the Chair of
Journal, European Journal of Information Systems, International Journal of Business Transformation. In 2018, he founded
Production Economics, International Journal of Operations & Production Brunel’s Centre for Artificial Intelligence. The centre
Management, International Journal of Production Research, Journal of is truly interdisciplinary – with members from engin-
Business Research, Electronic Markets, Technology Forecasting and Social eering, health, life sciences, social sciences, law, busi-
Change, Information Systems Frontiers, and Production Planning & Control. ness and management as well as computer science
In 2017, he won the Best Paper Award by The Academy of Management and education. The Centre for AI has extensive
Journal and by The Electronic Markets: The International Journal on national and international relationships with universities and organisa-
Networked Business. He has been serving as a member on the editorial tions in the public, private and third sectors. The overarching purpose of
board of five international journals. Moreover, he is a CompTIA the Centre is to study the effect of AI on societies, organisations and
RFID þ Certified Professional, and the Academic Co-Founder of RFID individuals. More recently, he and a team of Brunel scholars have won
Academia. Apart from teaching and conducting research, He leads the funding to create AI Lab within the Centre. In addition to leading and
newly created Artificial Intelligence & Business Analytics Cluster. In one directing Centre activities, he has pioneered the development of an
of his areas of research, he has been recently recognised as the most interdisciplinary Master of Science in AI Strategy. He is currently working
influential scholar in big data analytics and enterprises based on the on two funded projects examining the effects of AI on employment,
number of published articles and the number of citations, and among productivity, business models and graduate skills. He has a strong track
the 2% of the most influential scholars in the world based on the record of winning research grants and has published over one hundred
Mendeley database that includes 100,000 top-scientists. He ranks in double blind refereed journal and conference papers. He has consulted
ClarivateTMs 1% most cited scholars in the world for 2020, from the with numerous multinational companies in the UK and internationally,
‘Highly Cited ResearchersTM’ list that identifies global research scientists working with board directors, on a wide range of issues including tech-
who show exceptional influence-reflected in the publication of multiple nology strategies, transformation programmes and culture change
papers frequently cited by their peers. Furthermore, his current Google initiatives.
PRODUCTION PLANNING & CONTROL 5

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Maciel M. Queiroz http://orcid.org/0000-0002-6025-9191 Grover, Purva, Kumar Kar Arpan, and Yogesh K. Dwivedi. 2020.
Cameron Guthrie http://orcid.org/0000-0003-2712-8891 “Understanding Artificial Intelligence Adoption in Operations
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