Supply Chain

“Artificial Intelligence in SCM”

Group members:
Hoonain abbas 53147

Ali wahab mirza 53290

Sara Iqbal 65210

Adil Ghazi Khan 50939

Kashif Khan 53026

No. Table of Contents
1. INTRODUCTION
 Problem-solving
 Innovation
 Human extension
 Research and Development
 Economic and social development
 Shipping
 Manufacturing
 Retail
2. HISTORY
3. LITERATURE REVIEW
4. PROBLEM STATEMENT
 Traffic Congestion
 Road Safety
 Inventory Theft
 Poor Standards
 Fleet Management Challenges
 Emergency Response
 Insurance Costs

5. FINDINGS
 Traffic jam
 Road safety
 Vehicle Theft Prevention and Recovery
 Efficiency of public transport
 Fleet management
 Efficient energy use and emissions
 Emergency response
 Insurance and risk management
 Public awareness and policy-making
 Driver Training and Education

6. CONCLUSION
7. RECOMMENDATIONS
8. Reference
INTRODUCTION
Artificial intelligence (AI) is a broad branch of computer science that involves the development of
machines and systems that can perform tasks that normally require human intelligence, such as
recognizing images, understanding natural language, solving problems, and making decisions. One of the
key technologies in AI is machine learning. Machine learning allows systems to learn from experience
and improve without being explicitly programmed. There are different types of machine learning such as
unsupervised learning, supervised learning, and reinforcement learning. The field of AI has developed
rapidly in recent years, and many companies and organizations invest in development and research. AI
has the potential to improve many areas of our lives. It also raises ethical and social concerns such as
healthcare, transportation, and education. Job Relocation and Data Protection.

One of the main drivers of AI development is the desire to automate tasks and improve efficiency and
productivity. This is evident in the manufacturing, transportation, and finance industries, which use AI
systems to streamline operations and improve performance.

Problem-solving:
AI can be used to solve complex problems and make decisions that are difficult or impossible for
humans. This includes tasks such as analyzing large amounts of data, finding patterns, and making
predictions.

Innovation:
With the help of AI, we can develop new products, services, and technologies that have never been
possible before. This may include areas such as self-driving cars, personalized medicine, and digital
assistants.

Human extension:
AI can be used to enhance human skills and improve quality of life. This includes areas such as assistive
technology and educational technology for people with disabilities.

Research and Development:

AI is also being used as a tool for scientific research and development such as drug discovery, materials
science, and natural language processing.

Economic and social development:

AI can contribute to society's economic and social development, for example, by helping create new
jobs, improving health care and education, and addressing social challenges such as poverty and climate
change.

Shipping:
AI is being used in transportation to develop self-driving cars, optimize logistics and supply chain
management, and improve traffic management.

Manufacturing:
AI is being used in manufacturing to optimize production processes, improve quality control, and reduce
downtime. It is also used to develop smart factories and predictive maintenance systems.

Retail:
AI is being used in retail to personalize customer experiences, optimize pricing and inventory
management, and improve supply chain efficiency.

HISTORY
Artificial Intelligence (AI) plays a pivotal role in modernizing and optimizing supply chain operations. By
leveraging AI-powered algorithms, predictive analytics, and data-driven insights, businesses can enhance
demand forecasting accuracy, streamline inventory management, and improve overall operational
efficiency. AI enables real-time monitoring and decision-making, helping to mitigate disruptions caused
by factors like traffic congestion, demand fluctuations, and unforeseen events. Additionally, AI-driven
automation enhances supply chain visibility, allowing for quicker responses to changes and better
allocation of resources. This technology empowers businesses to adapt to dynamic market conditions,
reduce costs, and enhance customer satisfaction through improved on-time deliveries and product
availability. In essence, AI is transforming supply chains into more agile, data-driven, and responsive
systems that are better equipped to meet the challenges of today's global markets.

LITERATURE REVIEW
As traffic volumes and congestion grow on highways and urban roadways, freight and delivery service
operators become increasingly challenged to maintain dependable and reliable schedules. Weisbrod, G.,
& Fitzroy, S. F. (2011). From the perspective of shippers and carriers, there are the day-to-day cost
implications of delay and reliability as they affect supply chain management Weisbrod, G., & Fitzroy, S.
F. (2011). as well as a longer-range need to assess opportunities, risks, and returns associated with
location, production, and distribution decisions. Weisbrod, G., & Fitzroy, S. F. (2011).

The demands of effective business controllers at the apex of the supply chain contribute to hazardous
workplace practices and poor road safety outcomes. (Nossar, Igor, & Amoresano ,Luigi , no date) The
commercial decisions of these supply chain actors can determine the parameters within which matters
such as driver remuneration, delivery schedule, and working hours are determined.(Nossar ,Igor,&
Amoresano ,Luigi , no date) . In turn, those matters increase the pressure placed on RT workers to
engage in hazardous work practices which lead to poor safety outcomes. (Nossar, Igor, &
Amoresano ,Luigi , no date).

The theft of goods poses a significant problem across the globe. Cargo theft represents a value that the
European Union (EU) estimates as €8.2 billion annually. (EU,2018). In the context of all cargo
transportation, this is an average of €6.72 per trip. (EU, 2018) However, these figures are conservative
because most cargo thefts go unreported, D., & Lantz, B. (2018) and because the figures reflect only the
value of the items stolen. Ekwall, D., & Lantz, B. (2018).

Road traffic accidents are a major health concern all over the world. Grinerud, K. (2022b). Each year,
1.3 million people die in fatal road traffic accidents. Grinerud, K. (2022b). Fatal and serious heavy goods
vehicle (HGV) crashes are over-represented in many countries. Grinerud, K. (2022b). Safety training
and education are highlighted as important factors in managing road safety for work-related driving of
HGVs Grinerud, K. (2022b).

PROBLEM STATEMENT
Supply chain management in Pakistan faces several challenges that can impact the efficiency, cost-
effectiveness, and overall performance of the supply chain. Some of the key problems related to traffic,
road safety, inventory theft, poor standards, fleet management, energy consumption, emergency
response, and insurance costs include:

Traffic Congestion:
Major cities in Pakistan, such as Karachi, Lahore, and Islamabad, suffer from severe traffic congestion.
This leads to delays in transportation, increased delivery times, and inefficiencies in the supply chain.

Road Safety:
Poor road infrastructure and lax enforcement of traffic rules contribute to road accidents, causing
damage to goods in transit, injuries, and even fatalities. These incidents can disrupt supply chain
operations and increase insurance claims.

Inventory Theft:
Theft and pilferage of goods in transit and storage facilities are common problems in Pakistan. This
leads to losses for businesses, higher insurance premiums, and reduced customer trust.

Poor Standards:
Inconsistent quality and standards of transportation vehicles, packaging, and handling practices can
lead to product damage, spoilage, and customer dissatisfaction.

Fleet Management Challenges:

Limited availability of well-maintained vehicles, inadequate maintenance practices, and lack of real-time
tracking systems can result in breakdowns, delays, and disruptions in the supply chain.

Emergency Response:
Inadequate emergency response systems and protocols can exacerbate the impact of accidents, natural
disasters, or other unforeseen events, leading to further disruptions in the supply chain.

Insurance Costs:
 High insurance costs are often incurred due to the risks associated with road accidents, theft, and other
supply chain disruptions. This adds to the overall operational expenses for businesses.

FINDINGS
In Pakistan, telematics systems can address a number of specific challenges and problems in the local
transportation and automotive industry contexts, including:

•Traffic jam:
Telematics can help analyze traffic patterns, identify areas prone to traffic congestion, and suggest
alternative routes to reduce travel time and ease congestion in major cities.

•Road safety:
Telematics systems can monitor driver behavior and provide real-time warnings about risky driving
habits, helping to improve road safety and reduce accidents.

•Vehicle Theft Prevention and Recovery:

Pakistan faces significant problems with vehicle theft. Telecoms can help track stolen vehicles and
facilitate their recovery by providing accurate location data in real time.

•Efficiency of public transport:

Telematics can improve the efficiency of the public transport system by providing passengers with real-
time information about bus or train timetables, arrivals, and departures.

•Fleet management:
Businesses with fleets, such as delivery services and logistics companies, can use telematics to optimize
routes, track driver performance, and improve overall fleet management.

•Efficient energy use and emissions:

Telematics can help monitor fuel consumption, reduce excessive idling, and promote environmentally
friendly driving practices, helping to reduce fuel costs and emissions.

•Emergency response:
Telematics can improve emergency response times by providing precise location information to
emergency services, helping them reach accident or incident sites faster.

• Insurance and risk management:

Telematics data can be used by insurance companies to offer personalized insurance plans based on
driving behavior, encouraging safer driving habits and reducing accidents.

•Public awareness and policy making:

Telematics data can provide valuable insights into traffic patterns, road use, and transportation trends,
which can aid urban planning, infrastructure development, and policymaking.
•Driver Training and Education:
Telematics systems can be used for driver education programs that promote safe driving practices and
help new drivers learn better skills on the road.

CONCLUSION
The supply chain in Pakistan grapples with a multitude of challenges including severe traffic congestion
and inadequate road safety measures, leading to delays and accidents; rampant inventory theft and
poor standards compromising product integrity and customer trust; inefficient fleet management,
exacerbated by energy shortages, resulting in disruptions; inadequate emergency response systems
amplifying the impact of unforeseen events; and high insurance costs escalating operational expenses.
These challenges collectively hinder the country's supply chain efficiency, increase costs, and undermine
overall business resilience. To mitigate these issues, a comprehensive approach involving infrastructure
improvement, technology integration, standardized practices, and collaborative efforts among
stakeholders is crucial to fostering a more secure, responsive, and cost-effective supply chain ecosystem
in Pakistan.

RECOMMENDATIONS
Considering the above problems that can cause inefficiency in the entire supply chain. We suggest
Telematics, an integrated AI system that can provide real-time data and in-depth insight to encounter
the above problems.

A Telematics system includes a vehicle tracking device installed in a vehicle that allows the sending,
receiving, and storing of telemetry data. It connects via the vehicle’s own onboard diagnostics (ODBII) or
CAN-BUS port with a SIM card, and an onboard modem enables communication through a wireless
network.

The device collects GPS data as well as an array of other vehicle-specific data and transmits it via a
cellular network or satellite communication to a centralized server. The server interprets the data and
enables it to be displayed for end users via secure websites and apps optimized for smartphones and
tablets.

The telematics data captured can include location, speed, idling time, harsh acceleration or braking, fuel
consumption, vehicle faults, and more. When analyzed for particular events and patterns, this
information can be provided.

Reference
• https://www.mdpi.com/2313-576X/8/2/43

•International Transport Workers’ Federation

https://www.itfglobal.org › S…PDF
Delivering “Safe Rates” in Today’s Road Transport Supply Chains

•https://link.springer.com/article/10.1007/s12198-018-0186-0

• https://www.intechopen.com/chapters/18515