The Impact of Artificial Intelligence on Supply Chain Optimization in FMCG Industry

Abstract

Supply chains managed by Artificial Intelligence (AI) have transformed the Fast-Moving Consumer Goods (FMCG) industry through improved operational conduct and better demand prediction, and higher operational speed. A comprehensive study examines how AI optimizes supply chain systems by considering Unilever Sri Lanka as its primary subject. Fast-moving consumer goods (FMCG) companies utilize predictive analytics, machine learning, and real-time data integration and optimization algorithms to improve inventory management while decreasing operational expenses and boosting their ability to make decisions. The thesis analyses data through quantitative survey responses from 25 executive-level Unilever Sri Lanka employees as well as qualitative information gained through semi-structured surveys. The use of AI for demand prediction leads to better accuracy measurements, which decreases product shortages while eliminating excessive stock amounts. Through the integration of AI-driven logistics and route optimization systems, time and customer satisfaction measures have considerably improved. Supply chain operations encounter barriers to comprehensive AI adoption because of implementation expenses alongside integration difficulties and force unwillingness toward its utilization. This thesis highlights the main obstacles that impede AI adoption through a combination of data security concerns and IT protection issues, and insufficient qualified personnel in AI fields. The researcher has proposed implementing AI through stages while creating training programs for employees and establishing better data management protocols along with AI protection systems for networks. Visionary organizations need to connect AI solutions to sustainable operations through measures such as package efficiency improvement and resource waste reduction to achieve sustainable operational performance. The research data indicates that artificial intelligence solutions for supply chains have become necessary for holding market leadership positions in Fast-Moving Consumer Goods organizations. Companies face a necessity to invest in AI infrastructure, partner with technology specialists, and educate their personnel through continuous training if they aim to exploit AI completely. This practice enhances AI supply chain understanding in management and delivers strategic guidelines to guide the FMCG sector's adoption of AI in the future.