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Industry Experiences of Artificial Intelligence (AI) : Benefits and Challenges in Operations and Supply Chain Management
Industry Experiences of Artificial Intelligence (AI) : Benefits and Challenges in Operations and Supply Chain Management
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All content following this page was uploaded by Samuel Fosso Wamba on 21 March 2022.
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
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.
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
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.
Fosso Wamba, S., and M. M. Queiroz. 2020. “Industry 4.0 and the Supply
ORCID Chain Digitalization: A Blockchain Diffusion Perspective.” Production
Samuel Fosso Wamba http://orcid.org/0000-0002-1073-058X Planning & Control. doi:10.1080/09537287.2020.1810756.
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
Ashley Braganza http://orcid.org/0000-0003-4989-6656 Management: Insights from the Review of Academic Literature and
Social Media Discussions.” Annals of Operations Research: 1–37. doi:10.
1007/s10479-020-03683-9.
Hennelly, Patrick A., Jagjit Singh Srai, Gary Graham, and Samuel Fosso
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