The role of Artificial Intelligence networks in sustainable supply chain finance for foodand drink industry

Abstract

In the last decade, food and drink supply chain management has become an important part of global operations strategy. The global food and drink industries (FDIs) is establishing supply chain operations across countries as a result of increasing demand, this expansion has created challenges in coordinating operations that connect multi-suppliers, one as such is the financial enabler for the multi-layered supply chain network. However, literature on artificial intelligence (AI) in FDIs is limited, this study explores AI theory in supply chain networks and alternative supply chain financing for the FDIs. This study proposes a new conceptual framework based on theoretical contributions identified through literature, a conceptual framework is established and further developed to a meta-framework. This study explored the set-theoretic comparative approach for data analysis, the outcomes of this research suggest that the probable contributions of supply chain networks driven by AI technologies provide a sustainable financing stream for the food and drink supply chain. KEYWORDSArtificial intelligence food and drink industries supply chain finance sustainability supply networksThe food and drink industries (FDIs) have been facing immense cash flow challenges that are affecting operations; as a result, firms are finding difficulties in sourcing funds to meet customer and supplier demands (Yakovleva, Sarkis, and Sloan 2012). In this environment, supply chain finance has become the focal point of business financing, especially since the last recession where financial services support for global supply chain industries and operations has been reduced or withdrawn (Lekkakos and Serrano 2016). Therefore, we explore the important impact of Artificial Intelligence (AI) in stimulating financial services for FDIs through supply chain network activities.One of the impact of the economic collapse is shortage of liquidity for the FDIs (Huang, Yang, and Tu 2019). During this challenging periods, FDIs initiated the trade credit system as an alternative form of financing enabling suppliers to continue doing business, consequently leading to eventually worse situation in the supply chain (upstream) (Huang, Fan, and Wang 2019). The consequences of this financial crisis contributed to the impulse for innovative solutions that support and optimise cash flow. Among these solutions, supply chain finance (SCF) is one of the significant strategies, with the aim to ensure sustainable financial flows within the industry by implementing technologically advanced solutions such as AI.Although there is a consensus on the impact of the financial crisis in supply chain (SC) leading to the initiative of supply chain finance. Thus, literature identify two views on the SCF: the first view is referred to as the 'supply chain-oriented' SCF, encirclements operational financial capital decisions described in its components such as cash flow and accounts payables. In addition, this perspective focuses on the optimisation of operational financial flows for FDIs...

Sustainable Supply Chain Finance and Supply Networks: The Role of Artificial Intelligence

“…Most of the previous work focused on inter-organizational SCF however supply chain networks and technological advancements such as AI have very limited considerations, as supply chain networks continue to grow, leveraging technology-driven financing methods such as procure-to-pay, which integrate both financing functionalities and purchase management systems are becoming prefer alternatives for SC financing [14]. Furthermore, large financial brokers and institutions are supporting these emerging initiatives worldwide, AI systems from current studies are projected as the tool to advance the course of financing in the supply chain management post COVID-19 pandemic, offering more reliable partnerships between the financier and the supply chain companies [15]. Furthermore, supply chain networks act as a single colossal system of interconnecting supply chain companies and financial institutions/brokers, providing a link to control and manage financial services, tracking, and cash flows.…”

Advancing Consumer Behavior: The Role of Artificial Intelligence Technologies and Knowledge Sharing

“…Following the design method [8], this study used a longitudinal survey with online participants to test the relationships and associations in the proposed meta-framework. A cross-sectional online survey was conducted in 2019, we selected active participants through research conferences, supply chain specific events, and use online platforms such as LinkedIn to engage in the survey exercise.…”

“…Most of the previous work focused on inter-organizational SCF however supply chain networks and technological advancements such as AI have very limited considerations, as supply chain networks continue to grow, leveraging technology driven financing methods such as procure-to-pay, which integrate both financing functionalities and purchase management systems are becoming prefer alternatives for SC financing [7]. Furthermore, large financial brokers and institutions are supporting these emerging initiatives worldwide, AI systems from current studies are projected as the tool to advance the course of financing in the supply chain management post COVID-19 pandemic, offering more reliable partnerships between the financier and the supply chain companies [8]. Furthermore, supply chain networks act as a single colossal system of interconnecting supply chain companies and financial institutions/brokers, providing a link to control and manage financial services, tracking, and cash flows.…”

Analyzing Barriers of Circular Food Supply Chains and Proposing Industry 4.0 Solutions

“…Machine learning, AI, and CPS technology provide an increase in financial performances for each actor along the food supply chain [128] by enabling a higher degree of supply chain integration due to its multi-stakeholder structure and also contributing to the increase of environmental sustainability of the food supply chain [129,130]. Therefore, it is useful for dealing with financial challenges and ineffective labor in the transition to CE [131,132].…”