AI for Smarter Supply Chains: Driving Sustainability

April 3rd 2025

Published by Tyrell Drysdale

AI for Smarter Supply Chains: Driving Sustainability

Today, sustainability has become essential to supply chains.

Supply chains need to use fewer resources, create less waste and reduce pollution to be more efficient and Artificial Intelligence (AI) is making this easier with smart tools and data. AI can assist companies in multiple ways, including improving planning and enabling the more efficient movement of products and we’re going to delve into how this works.

Smarter Logistics

As discussed in our previous Tech News Thursday article, (24) AI and Legal Frameworks for Sustainable Development: What Practitioners say | LinkedIn, the global focus on sustainability intensifies, with industries looking for innovative ways to reduce their environmental impact. One of the most promising solutions is the integration of AI into supply chain management. This revolutionary practice changes the way in which businesses manage resources, reduce waste, and improve efficiency; it practically drives sustainability in ways that were previously unimaginable.

The benefit of these sustainable supply chains is the optimisation of sustainable resources and a reduction in carbon footprints. Essentially, AI can help businesses reduce their carbon footprints by optimising transportation routes, leveraging the likes of tracking technologies. As discussed in our previous sustainability-focused articles, AI-powered systems analyse factors such as weather, traffic, and fuel consumption to find the most energy-efficient ways to delivery products.

AI-Driven Demand Forecasting for Efficient Inventories

AI can help to predict models to forecast demand using real-time data, enabling leaner inventories and reducing waste. A real-world example is Walmart which uses AI to analyse data to fine-tune its inventory levels across thousands of stores. This has enabled them to reduce excess stock, especially in the perishable categories, while keeping sufficient stock to meet customer demand and the overall achievement is that of reducing waste and environment impact.

AI plays a significant role in advancing circular economy models, where products and materials are reused, refurbished, or recycled instead of being discarded. With AI, businesses have the capability of tracking the lifecycle of a product, ensuring that end-of-life goods are directed towards recycling.

Through AI integration, companies can monitor sustainability metrics in real-time enabling them to track their environmental impact at every stage of the supply chain, from raw materials extraction to product delivery, highlighted previously.

Conclusively, AI-driven smart supply chains are transforming sustainability practices across all industries. By improving resource allocation, reducing waste, optimising transportation, leveraging tracking technologies, and supporting circular economy models, AI is empowering businesses to operate more sustainably. As these technologies continue to evolve and be regulated, the potential for AI to drive even greater sustainability in global supply chains is limitless, making it a key player in the transition to a greener, more efficient future; hopefully following the core principles from the Paris AI Summit (see (24) AI and the Global Progress: Shaping the Future | LinkedIn).

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