Application of Artificial Intelligence Methods for Improvement of Strategic Decision-Making in Logistics

P. 132–143.

Kitzmann H., Strimovskaya A., Serova E.

Highly evolving economic environment requires from logistics companies
fast response and agile solutions. Recently development of digital technologies
gives significant advantages to logistics business. Hence many optimized
processes belong to operational management level. At the same time the importance
of digital technologies adoption to strategic management level should not be
underestimated, as it allows gaining competitive advantages alongside the supply
chain. In our research we develop a conceptual framework for matching operational
and strategic management decisions in order to achieve the stated strategy.
The choice of the appropriate strategy is conductedwith artificial intelligence tools,
machine learning in particular. The present study demonstrates high efficiency of
applying artificial intelligence tools both in operational management and strategic
decision-making. The research is focused on transportation and inventory management
as the most resource consuming and challengeable logistics operations.
At the same time these processes makes the most considerable influence on the
configuration of supply chains. So the article proposes a multi-level conceptual
approach that includes several steps aimed on identifying key metrics for different
market strategies in logistics and introduction of artificial intelligence tools to
different management levels in order to contribute to decision-making promptly.
On the first step we suggest the model targeting to optimization of transportation
costs via reduction of logistics cycle duration, and estimation of logisticsrelated
assets. On the second step it is suggested to define the most appropriate
market strategy by defining a set of metrics relevant for each strategy. So the proposed
approach allows obtaining the most suitable market strategy for logistics
companies with artificial intelligence tools. The optimization solutions suggested
by the authors are tending to be practically applied and claims their high relevance
in terms of digital transformation and adoption in strategic logistics management.

Keywords: decision-making, logistics, machine learning, digitalization, strategic management, artificial intelligence, market strategy

In book

Transfer, Diffusion and Adoption of Next-Generation Digital Technologies. IFIP WG 8.6 International Working Conference on Transfer and Diffusion of IT, TDIT 2023 Nagpur, India, December 15–16, 2023 Proceedings, Part II

Vol. 698. , Springer, 2024.