Impact of Automation on Retail Logistics: AI-Powered Solutions for Efficient Supply Chains

Impact of Automation on Retail Logistics: AI-Powered Solutions for Efficient Supply Chains

Vidushi Sharma

DevOps Project Manager

vidushisha@gmail.com

Abstract:

This research explores the transformative impact of automation on retail logistics, focusing specifically on AI-powered solutions that enhance supply chain efficiency. As e-commerce continues to grow, retailers face increasing pressure to streamline logistics processes to meet rising consumer expectations for fast, reliable deliveries and cost-effective operations. AI technologies, such as machine learning, predictive analytics, and autonomous systems, have emerged as critical tools in addressing these challenges by improving various logistics functions, including demand forecasting, inventory management, route planning, and warehouse automation. This study investigates the role of AI-powered solutions in enhancing operational performance, reducing costs, and boosting customer satisfaction across retail logistics networks. A mixed-methods approach is employed, combining quantitative analysis of logistics performance data and qualitative case studies from retail companies that have integrated AI technologies into their supply chains. The quantitative analysis examines key performance indicators such as delivery time, cost per order, inventory turnover, and customer satisfaction before and after the adoption of AI solutions. The qualitative analysis draws on case studies from companies like Amazon, Walmart, and JD.com to explore the real-world applications and challenges of AI in retail logistics. The results indicate that AI automation improves forecasting accuracy, reduces operational costs, enhances inventory management, and improves delivery efficiency. However, challenges such as system integration, data quality, and workforce adaptation are also identified. This study contributes to understanding the current state of AI applications in retail logistics and offers practical insights for industry leaders aiming to optimize their supply chains.

Keywords: Automation, Artificial Intelligence, Retail Logistics, Supply Chain Efficiency, Machine Learning, Inventory Management, Predictive Analytics, E-commerce, Cost Reduction, Customer Satisfaction